Insmed (NASDAQ:INSM) Shares Gap Down - What's Next?

Key Points

• Insmed shares fell 7%, opening at $105.50 versus the prior close of $111.12 and later trading near $103.75. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive: the stock has an average “Buy” rating and a consensus price target of $200.57, despite one “Sell” rating.
• Insmed beat quarterly expectations, reporting a smaller-than-expected loss and $425.5 million in revenue, up 296.1% year over year. However, insiders sold roughly $36.3 million of shares over the past three months.

Insmed, Inc. (NASDAQ:INSM - Get Free Report)'s stock price gapped down prior to trading on Monday. The stock had previously closed at $111.12, but opened at $105.50. Insmed shares last traded at $103.7520, with a volume of 566,631 shares traded.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Weiss Ratings restated a "sell (d-)" rating on shares of Insmed in a research report on Friday, July 17th. Cantor Fitzgerald reissued an "overweight" rating and set a $235.00 price objective on shares of Insmed in a report on Tuesday, July 28th. Truist Financial restated a "buy" rating and issued a $195.00 target price (up from $185.00) on shares of Insmed in a research report on Monday, August 10th. Guggenheim cut their target price on Insmed from $207.00 to $205.00 and set a "buy" rating for the company in a research note on Friday, August 7th. Finally, Wells Fargo & Company increased their price target on shares of Insmed from $161.00 to $169.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $200.57.

Insmed Stock Down 7.0%

The company has a market capitalization of $22.58 billion, a P/E ratio of -25.17 and a beta of 0.83. The company has a current ratio of 3.72, a quick ratio of 3.40 and a debt-to-equity ratio of 0.74. The stock's fifty day moving average is $120.20 and its 200 day moving average is $121.15.

Insmed (NASDAQ:INSM - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The biopharmaceutical company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.67) by $0.61. The firm had revenue of $425.49 million for the quarter, compared to analysts' expectations of $395.50 million. Insmed had a negative net margin of 76.94% and a negative return on equity of 123.94%. The company's revenue for the quarter was up 296.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($1.70) earnings per share. Research analysts predict that Insmed, Inc. will post -1.84 EPS for the current fiscal year.

Insider Activity

In related news, Director David Brennan sold 25,000 shares of the company's stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $124.00, for a total transaction of $3,100,000.00. Following the completion of the transaction, the director owned 39,238 shares in the company, valued at $4,865,512. This represents a 38.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Roger Adsett sold 239,850 shares of the firm's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $133.27, for a total value of $31,964,809.50. Following the completion of the sale, the chief operating officer directly owned 98,744 shares of the company's stock, valued at $13,159,612.88. The trade was a 70.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 275,549 shares of company stock valued at $36,320,872. Company insiders own 2.10% of the company's stock.

Institutional Trading of Insmed

Hedge funds have recently modified their holdings of the business. Reflection Asset Management bought a new stake in Insmed during the fourth quarter worth about $30,000. CX Institutional bought a new position in shares of Insmed during the third quarter valued at $46,000. Harbor Investment Advisory LLC purchased a new stake in shares of Insmed during the 2nd quarter valued at about $52,000. Whittier Trust Co. of Nevada Inc. grew its position in Insmed by 86.6% in the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 444 shares of the biopharmaceutical company's stock worth $73,000 after purchasing an additional 206 shares during the period. Finally, Versant Capital Management Inc grew its holdings in shares of Insmed by 118.9% in the third quarter. Versant Capital Management Inc now owns 648 shares of the biopharmaceutical company's stock worth $74,000 after acquiring an additional 352 shares during the period.

About Insmed

Insmed Incorporated is a global biopharmaceutical company focused on developing and commercializing therapies for patients with serious and rare diseases. The company's research and development activities center on pulmonary and inflammatory conditions, with an emphasis on diseases that have limited treatment options.

Insmed's principal commercial product is ARIKAYCE liposomal, an inhaled formulation of amikacin used with a combination antibacterial regimen to treat refractory Mycobacterium avium complex lung disease in certain adult patients.

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