Stock Traders Purchase High Volume of Call Options on Insmed (NASDAQ:INSM)

Key Points

• Unusual options activity: Traders bought 7,285 call options on Insmed, about 160% above the stock’s typical call volume, suggesting elevated bullish speculation.
• Stock fell on the day: Insmed shares dropped 5.0% to $94.10, near their 52-week low of $90.86 and well below the 50-day and 200-day moving averages.
• Analysts remain mostly positive: Despite the pullback, Wall Street still has a Moderate Buy consensus on INSM, with an average price target of $212.50 and most analysts rating it a buy or better.

Insmed, Inc. (NASDAQ:INSM - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Investors purchased 7,285 call options on the company. This represents an increase of approximately 160% compared to the typical volume of 2,802 call options.

Insmed Trading Down 5.0%

Insmed stock traded down $4.94 during trading hours on Wednesday, reaching $94.10. 1,851,459 shares of the company's stock traded hands, compared to its average volume of 2,827,914. The firm has a market capitalization of $20.40 billion, a price-to-earnings ratio of -16.34 and a beta of 0.79. The company has a debt-to-equity ratio of 0.80, a quick ratio of 4.10 and a current ratio of 4.47. Insmed has a fifty-two week low of $90.86 and a fifty-two week high of $212.75. The firm's 50 day moving average is $128.45 and its 200-day moving average is $153.16.

Insmed (NASDAQ:INSM - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The biopharmaceutical company reported ($0.76) earnings per share for the quarter, beating the consensus estimate of ($0.90) by $0.14. Insmed had a negative net margin of 144.44% and a negative return on equity of 130.11%. The business had revenue of $305.96 million for the quarter, compared to analyst estimates of $300.81 million. During the same period in the prior year, the business posted ($1.42) earnings per share. Insmed's revenue was up 229.7% compared to the same quarter last year. On average, analysts predict that Insmed will post -2.56 earnings per share for the current year.

Insider Activity at Insmed

In other Insmed news, insider Michael Alexander Smith sold 19,638 shares of the company's stock in a transaction dated Monday, March 30th. The shares were sold at an average price of $150.98, for a total value of $2,964,945.24. Following the completion of the sale, the insider directly owned 51,871 shares of the company's stock, valued at approximately $7,831,483.58. This represents a 27.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Sara Bonstein sold 2,404 shares of Insmed stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $102.27, for a total transaction of $245,857.08. Following the completion of the transaction, the chief financial officer directly owned 69,082 shares in the company, valued at approximately $7,065,016.14. This trade represents a 3.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 160,482 shares of company stock worth $24,438,193 in the last 90 days. Corporate insiders own 2.10% of the company's stock.

Institutional Trading of Insmed

A number of hedge funds and other institutional investors have recently modified their holdings of INSM. CIBC Private Wealth Group LLC lifted its stake in Insmed by 42.1% in the third quarter. CIBC Private Wealth Group LLC now owns 179 shares of the biopharmaceutical company's stock valued at $26,000 after acquiring an additional 53 shares during the last quarter. CoreCap Advisors LLC bought a new position in Insmed during the fourth quarter worth about $27,000. SBI Securities Co. Ltd. raised its stake in Insmed by 404.9% in the third quarter. SBI Securities Co. Ltd. now owns 207 shares of the biopharmaceutical company's stock valued at $30,000 after buying an additional 166 shares during the period. GraniteShares Advisors LLC acquired a new stake in shares of Insmed in the fourth quarter valued at approximately $30,000. Finally, Reflection Asset Management bought a new position in shares of Insmed during the 4th quarter worth approximately $30,000.

Wall Street Analyst Weigh In

A number of research firms have recently commented on INSM. Barclays lifted their price objective on Insmed from $231.00 to $237.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 1st. JPMorgan Chase & Co. reduced their price objective on Insmed from $180.00 to $179.00 and set an "overweight" rating for the company in a research report on Monday. Guggenheim dropped their target price on shares of Insmed from $230.00 to $226.00 and set a "buy" rating on the stock in a research report on Friday, May 8th. Mizuho increased their price target on shares of Insmed from $204.00 to $206.00 and gave the company an "outperform" rating in a report on Wednesday, March 25th. Finally, Roth Mkm restated a "buy" rating on shares of Insmed in a report on Monday. One analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $212.50.

Insmed Company Profile

Insmed Incorporated is a biopharmaceutical company focused on developing and commercializing therapies for patients with rare and serious diseases, with a particular emphasis on difficult-to-treat pulmonary infections. Headquartered in Bridgewater, New Jersey, the company concentrates its research and development efforts on targeted drug delivery technologies and novel formulations intended to improve clinical outcomes for patients who have limited treatment options.

The company's principal marketed product is ARIKAYCE (amikacin liposome inhalation suspension), an inhaled liposomal formulation of the antibiotic amikacin that is approved by the U.S.

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