Insmed (NASDAQ:INSM) Shares Gap Up After Better-Than-Expected Earnings

Shares of Insmed, Inc. (NASDAQ:INSM) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $99.02, but opened at $128.22. Insmed shares last traded at $136.4560, with a volume of 2,979,095 shares.

The biopharmaceutical company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.69) by $0.63. The company had revenue of $425.49 million during the quarter, compared to the consensus estimate of $393.74 million. Insmed had a negative return on equity of 130.11% and a negative net margin of 144.44%.Insmed’s quarterly revenue was up 296.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($1.70) EPS.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $235.00 price objective on shares of Insmed in a research note on Tuesday, July 28th. Wells Fargo & Company lifted their target price on shares of Insmed from $160.00 to $161.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 15th. Guggenheim reissued a “buy” rating and issued a $207.00 price target on shares of Insmed in a research note on Friday, July 10th. BMO Capital Markets began coverage on shares of Insmed in a research report on Monday, July 20th. They set an “outperform” rating and a $192.00 price target for the company. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Insmed in a research note on Friday, July 17th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Buy” and an average target price of $209.35.

Insider Activity

In other Insmed news, COO Roger Adsett sold 2,370 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $102.27, for a total transaction of $242,379.90. Following the completion of the sale, the chief operating officer owned 98,603 shares of the company’s stock, valued at $10,084,128.81. This represents a 2.35% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Michael Alexander Smith sold 6,149 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $108.47, for a total transaction of $666,982.03. Following the completion of the sale, the insider directly owned 41,613 shares in the company, valued at approximately $4,513,762.11. This trade represents a 12.87% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 54,590 shares of company stock valued at $5,793,738 in the last three months. Corporate insiders own 2.10% of the company’s stock.

Institutional Trading of Insmed

A number of institutional investors have recently modified their holdings of the company. CIBC Private Wealth Group LLC grew its position in Insmed by 42.1% during the third quarter. CIBC Private Wealth Group LLC now owns 179 shares of the biopharmaceutical company’s stock valued at $26,000 after buying an additional 53 shares during the period. EverSource Wealth Advisors LLC increased its holdings in Insmed by 10.2% during the fourth quarter. EverSource Wealth Advisors LLC now owns 747 shares of the biopharmaceutical company’s stock valued at $130,000 after buying an additional 69 shares during the last quarter. Private Advisor Group LLC raised its position in Insmed by 1.8% in the first quarter. Private Advisor Group LLC now owns 4,749 shares of the biopharmaceutical company’s stock worth $777,000 after acquiring an additional 82 shares during the period. Glenmede Trust Co. NA raised its position in Insmed by 5.4% in the first quarter. Glenmede Trust Co. NA now owns 1,916 shares of the biopharmaceutical company’s stock worth $313,000 after acquiring an additional 98 shares during the period. Finally, Allworth Financial LP boosted its stake in shares of Insmed by 20.5% during the 4th quarter. Allworth Financial LP now owns 635 shares of the biopharmaceutical company’s stock worth $111,000 after acquiring an additional 108 shares during the last quarter.

Insmed Stock Up 33.3%

The company’s 50 day moving average price is $104.17 and its two-hundred day moving average price is $129.42. The company has a current ratio of 4.47, a quick ratio of 4.10 and a debt-to-equity ratio of 0.80. The firm has a market cap of $28.61 billion, a PE ratio of -23.14 and a beta of 0.81.

About Insmed

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.