Is Insmed Stock a Good Investment?
Insmed Investment Advice | INSM |
- Examine Insmed's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Insmed's leadership team and their track record. Good management can help Insmed navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Biotechnology space and any emerging trends that could impact Insmed's business and its evolving consumer preferences.
- Compare Insmed's performance and market position to its competitors. Analyze how Insmed is positioned in terms of product offerings, innovation, and market share.
- Check if Insmed pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Insmed's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Insmed Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Insmed Inc is a good investment.
Sell | Buy |
Strong Buy
Examine Insmed Stock
Researching Insmed's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 5.29. Insmed Inc had not issued any dividends in recent years. The entity had 1:10 split on the 3rd of March 2011.
To determine if Insmed is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Insmed's research are outlined below:
| Insmed Inc has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 245.36 M. Net Loss for the year was (481.53 M) with profit before overhead, payroll, taxes, and interest of 190.23 M. | |
| Insmed Inc currently holds about 554.87 M in cash with (400.44 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.62. | |
| Insmed Inc has a frail financial position based on the latest SEC disclosures | |
| Over 99.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Soleno Therapeutics Provides Corporate Update and Reports Third ... - StreetInsider.com |
Insmed Quarterly Gross Profit |
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Insmed uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Insmed Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Insmed's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 22nd of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Insmed's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Insmed's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2013-08-06 | 2013-06-30 | -0.32 | -0.28 | 0.04 | 12 | ||
2015-05-07 | 2015-03-31 | -0.5 | -0.55 | -0.05 | 10 | ||
2014-05-08 | 2014-03-31 | -0.41 | -0.36 | 0.05 | 12 | ||
2013-11-05 | 2013-09-30 | -0.41 | -0.46 | -0.05 | 12 | ||
2012-08-07 | 2012-06-30 | -0.33 | -0.39 | -0.06 | 18 | ||
2011-11-08 | 2011-09-30 | -0.28 | -0.34 | -0.06 | 21 | ||
2011-08-08 | 2011-06-30 | -0.33 | -0.4 | -0.07 | 21 | ||
2014-11-06 | 2014-09-30 | -0.46 | -0.54 | -0.08 | 17 |
Insmed's SEC filings
Before you invest in Insmed, make sure you check Insmed'srecent SEC filings. These artifacts are important regulatory documents required of all public companies to provide to potential investors. Insmed prospectus issued under the guidelines of the SEC is a legal declaration of facts and statements to ensure that Insmed investors are not misled. SEC filings are required by law to meet strict transparency standards and other important legal constraints. Although many companies may choose careful wording to disguise some material information, SEC filings make crucial Insmed's specific information freely available to individual and institutional investors to make a timely investment decision.
| 13th of November 2023 Unclassified Corporate Event | View | |
| 26th of October 2023 Financial Statements and Exhibits. Results of Operations and Financial Condition | View | |
| 7th of July 2023 Submission of Matters to a Vote of Security Holders | View |
Insmed Target Price Consensus
We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Insmed target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Insmed's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| Strong Buy |
Most Insmed analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Insmed stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Insmed Inc, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationInsmed Target Price Projection
Insmed's current and average target prices are 23.78 and 42.27, respectively. The current price of Insmed is the price at which Insmed Inc is currently trading. On the other hand, Insmed's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Insmed Target Price
Insmed Analyst Ratings
Insmed's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Insmed stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Insmed's financials, market performance, and future outlook by experienced professionals. Insmed's historical ratings below, therefore, can serve as a valuable tool for investors.Insmed's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.42 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Insmed's market, we take the total number of its shares issued and multiply it by Insmed's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.Market Cap |
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Insmed's profitablity analysis
Insmed's profitability indicators refer to fundamental financial ratios that showcase Insmed's ability to generate income relative to its revenue or operating costs. If, let's say, Insmed is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Insmed's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Insmed's profitability requires more research than a typical breakdown of Insmed's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
| Last Reported | Projected for 2023 | ||
| Return on Investment | (40.91) | (44.14) | |
| Return on Average Assets | (0.40) | (0.43) | |
| Return on Average Equity | (8.67) | (8.90) | |
| Return on Invested Capital | (0.37) | (0.40) | |
| Return on Sales | (1.85) | (1.99) |
Determining Insmed's profitability involves analyzing its financial statements and using various financial metrics to determine if Insmed is a good buy. For example, gross profit margin measures Insmed's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Insmed's profitability and make more informed investment decisions.
The data published in Insmed's official financial statements usually reflect Insmed's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Insmed Inc. For example, before you start analyzing numbers published by Insmed accountants, it's critical to develop an understanding of what Insmed's liquidity, profitability, and earnings quality are in the context of the Biotechnology space in which it operates.
Please note, the presentation of Insmed's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Insmed's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Insmed's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Insmed Inc. Please utilize our Beneish M Score to check the likelihood of Insmed's management manipulating its earnings.
Evaluate Insmed's management efficiency
Insmed Inc has return on total asset (ROA) of (0.3619) % which means that it has lost $0.3619 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (14.5341) %, meaning that it created substantial loss on money invested by shareholders. Insmed's management efficiency ratios could be used to measure how well Insmed manages its routine affairs as well as how well it operates its assets and liabilities. As of the 28th of November 2023, Return on Investment is likely to drop to -44.14. In addition to that, Return on Average Assets is likely to drop to -0.43. At this time, Insmed's Total Assets are very stable as compared to the past year. As of the 28th of November 2023, Current Assets is likely to grow to about 1.4 B, while Revenue to Assets are likely to drop 0.12.| Last Reported | Projected for 2023 | ||
| Book Value per Share | 0.71 | 0.73 | |
| Enterprise Value over EBIT | (7.00) | (7.55) | |
| Enterprise Value over EBITDA | (7.24) | (7.81) | |
| Price to Book Value | 30.78 | 33.21 | |
| Tangible Assets Book Value per Share | 11.80 | 10.21 | |
| Enterprise Value | 3.1 B | 2.5 B | |
| Tangible Asset Value | 1.5 B | 1.6 B |
The analysis of Insmed's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Insmed's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Insmed Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield 0.014 | Forward Dividend Yield 0.014 | Beta 1.396 |
Basic technical analysis of Insmed Stock
As of the 28th of November, Insmed retains the Market Risk Adjusted Performance of 0.3722, risk adjusted performance of 0.0541, and Downside Deviation of 2.03. Insmed technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We are able to interpolate and collect nineteen technical drivers for Insmed Inc, which can be compared to its competitors. Please check out Insmed Inc variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Insmed is priced fairly, providing market reflects its last-minute price of 23.78 per share. Given that Insmed Inc has jensen alpha of 0.1531, we strongly advise you to confirm Insmed Inc's regular market performance to make sure the company can sustain itself at a future point.Insmed's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Insmed insiders, such as employees or executives, is commonly permitted as long as it does not rely on Insmed's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Insmed insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
John Wise over two months ago Sale by John Wise of 1913 shares of Insmed | ||
John Wise over six months ago Sale by John Wise of 3366 shares of Insmed | ||
John Wise over six months ago Sale by John Wise of 593 shares of Insmed | ||
John Wise over six months ago Acquisition by John Wise of 31662 shares of Insmed subject to Rule 16b-3 |
Understand Insmed's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Insmed's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0541 | |||
| Market Risk Adjusted Performance | 0.3722 | |||
| Mean Deviation | 1.72 | |||
| Semi Deviation | 1.93 | |||
| Downside Deviation | 2.03 | |||
| Coefficient Of Variation | 1659.36 | |||
| Standard Deviation | 2.83 | |||
| Variance | 8.01 | |||
| Information Ratio | 0.0508 | |||
| Jensen Alpha | 0.1531 | |||
| Total Risk Alpha | 0.0996 | |||
| Sortino Ratio | 0.0709 | |||
| Treynor Ratio | 0.3622 | |||
| Maximum Drawdown | 23.01 | |||
| Value At Risk | (3.00) | |||
| Potential Upside | 3.43 | |||
| Downside Variance | 4.12 | |||
| Semi Variance | 3.71 | |||
| Expected Short fall | (2.06) | |||
| Skewness | 2.81 | |||
| Kurtosis | 16.57 |
| Risk Adjusted Performance | 0.0541 | |||
| Market Risk Adjusted Performance | 0.3722 | |||
| Mean Deviation | 1.72 | |||
| Semi Deviation | 1.93 | |||
| Downside Deviation | 2.03 | |||
| Coefficient Of Variation | 1659.36 | |||
| Standard Deviation | 2.83 | |||
| Variance | 8.01 | |||
| Information Ratio | 0.0508 | |||
| Jensen Alpha | 0.1531 | |||
| Total Risk Alpha | 0.0996 | |||
| Sortino Ratio | 0.0709 | |||
| Treynor Ratio | 0.3622 | |||
| Maximum Drawdown | 23.01 | |||
| Value At Risk | (3.00) | |||
| Potential Upside | 3.43 | |||
| Downside Variance | 4.12 | |||
| Semi Variance | 3.71 | |||
| Expected Short fall | (2.06) | |||
| Skewness | 2.81 | |||
| Kurtosis | 16.57 |
Insmed Stock media impact
Far too much social signal, news, headlines, and media speculation about Insmed that are available to investors today. That information is available publicly through Insmed media outlets and privately through word of mouth or via Insmed internal channels. However, regardless of the origin, that massive amount of Insmed data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Insmed news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Insmed relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Insmed's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Insmed alpha.
Insmed Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Insmed can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Insmed Inc Historical Investor Sentiment
Investor biases related to Insmed's public news can be used to forecast risks associated with an investment in Insmed. The trend in average sentiment can be used to explain how an investor holding Insmed can time the market purely based on public headlines and social activities around Insmed Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Insmed's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Insmed and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Insmed news discussions. The higher the estimate score, the more favorable the investor's outlook on Insmed.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Insmed in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Insmed's short interest history, or implied volatility extrapolated from Insmed options trading.
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Align your risk with return expectations
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Insmed Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for Insmed Stock analysis
When running Insmed's price analysis, check to measure Insmed's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Insmed is operating at the current time. Most of Insmed's value examination focuses on studying past and present price action to predict the probability of Insmed's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Insmed's price. Additionally, you may evaluate how the addition of Insmed to your portfolios can decrease your overall portfolio volatility.
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Is Insmed's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Insmed. If investors know Insmed will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Insmed listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (5.29) | Revenue Per Share 2.043 | Quarterly Revenue Growth 0.167 | Return On Assets (0.36) | Return On Equity (14.53) |
The market value of Insmed Inc is measured differently than its book value, which is the value of Insmed that is recorded on the company's balance sheet. Investors also form their own opinion of Insmed's value that differs from its market value or its book value, called intrinsic value, which is Insmed's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Insmed's market value can be influenced by many factors that don't directly affect Insmed's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Insmed's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Insmed is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Insmed's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.