Insmed (NASDAQ:INSM) Shares Gap Up - Here's Why

Key Points

• Insmed shares surged 16.5%, opening at $110 after previously closing at $96.98, with more than 2.25 million shares traded.
• Analyst sentiment remains broadly positive: the stock has a consensus “Moderate Buy” rating and a $197.26 price target, although Weiss Ratings maintains a “sell” rating.
• Insmed reported quarterly revenue of $524.43 million, up 268.4% year over year and above expectations, but its adjusted loss of $0.46 per share missed the consensus estimate of $0.39.

Insmed, Inc. (NASDAQ:INSM - Get Free Report) shares gapped up prior to trading on Thursday. The stock had previously closed at $96.98, but opened at $110.00. Insmed shares last traded at $110.4480, with a volume of 2,255,404 shares changing hands.

Analysts Set New Price Targets

INSM has been the topic of a number of research reports. UBS Group reaffirmed a "buy" rating on shares of Insmed in a report on Thursday, October 8th. Evercore reissued an "outperform" rating and set a $170.00 target price on shares of Insmed in a report on Friday, August 7th. HC Wainwright reissued a "buy" rating on shares of Insmed in a research report on Tuesday. Wells Fargo & Company upped their price target on shares of Insmed from $161.00 to $169.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Insmed in a research report on Thursday, October 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $197.26.

Insmed Stock Up 16.5%

The firm has a 50 day simple moving average of $113.29 and a two-hundred day simple moving average of $126.28. The company has a quick ratio of 3.40, a current ratio of 3.72 and a debt-to-equity ratio of 0.74. The stock has a market capitalization of $24.66 billion, a P/E ratio of -27.70 and a beta of 0.83.

Insmed (NASDAQ:INSM - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The biopharmaceutical company reported ($0.46) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.39) by ($0.07). Insmed had a negative net margin of 76.94% and a negative return on equity of 123.94%. The business had revenue of $524.43 million during the quarter, compared to the consensus estimate of $499.06 million. During the same quarter in the previous year, the business posted ($1.75) EPS. The company's revenue for the quarter was up 268.4% on a year-over-year basis. On average, equities research analysts expect that Insmed, Inc. will post -1.60 earnings per share for the current year.

Insider Activity

In other Insmed news, COO Roger Adsett sold 239,850 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $133.27, for a total transaction of $31,964,809.50. Following the completion of the transaction, the chief operating officer owned 98,744 shares of the company's stock, valued at approximately $13,159,612.88. The trade was a 70.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director David Brennan sold 25,000 shares of the stock in a transaction dated 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 directly owned 39,238 shares of the company's stock, valued at $4,865,512. This trade represents a 38.92% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Insmed

Institutional investors have recently added to or reduced their stakes in the stock. Virginia Estate & Retirement Planning Advisors Inc. acquired a new position in Insmed in the third quarter valued at approximately $29,000. SBI Securities Co. Ltd. grew its position in shares of Insmed by 69.4% during the 3rd quarter. SBI Securities Co. Ltd. now owns 349 shares of the biopharmaceutical company's stock worth $40,000 after buying an additional 143 shares during the period. CX Institutional acquired a new stake in shares of Insmed during the 3rd quarter worth approximately $46,000. Harbor Investment Advisory LLC acquired a new stake in shares of Insmed during the 2nd quarter worth approximately $52,000. Finally, Whittier Trust Co. of Nevada Inc. increased its stake in shares of Insmed by 86.6% in the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 444 shares of the biopharmaceutical company's stock valued at $73,000 after acquiring an additional 206 shares in the last quarter.

About Insmed

Insmed Incorporated is a global biopharmaceutical company focused on developing and commercializing therapies for serious and rare diseases. The company concentrates on conditions with significant unmet medical needs, particularly in pulmonary and infectious diseases.

Insmed's lead commercial product is ARIKAYCE (amikacin liposome inhalation suspension), an inhaled antibacterial therapy used in the United States for adults with refractory Mycobacterium avium complex lung disease as part of a combination antibacterial regimen.

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