Insmed Incorporated [NASDAQ: INSM] loss -20.23% on the last trading session, reaching $25.99 price per share at the time. The company report on May 10, 2021 that Insmed Announces Proposed Concurrent Public Offerings of Common Stock and Convertible Senior Notes due 2028.
— Insmed Incorporated (Nasdaq: INSM) announced that it intends to offer and sell $250 million of its common stock (the “Shares”) and $500 million aggregate principal amount of its convertible senior notes due 2028 (the “Notes”) in separate concurrent underwritten public offerings, a portion of which will be used to repurchase Insmed’s existing outstanding convertible senior notes due 2025. In addition, Insmed intends to grant the underwriters of the offering of the Shares (the “Equity Offering”) a 30-day option to purchase up to an additional 15% of the Shares and to the underwriters of the offering of the Notes (the “Notes Offering”) a 30-day option, solely to cover over-allotments, to purchase up to an additional 15% in aggregate principal amount of the Notes. All of the Shares and Notes to be sold in the offerings are to be sold by Insmed. The offerings are subject to market and other conditions, and there can be no assurance as to whether or when the offerings may be completed, or as to the actual size or terms of the offerings. The closing of each offering is not contingent on the closing of the other offering.
The Notes will be senior unsecured obligations of Insmed and will rank senior in right of payment to any of Insmed’s future indebtedness that is expressly subordinated in right of payment to the Notes and will rank equally in right of payment with all of Insmed’s existing and future liabilities that are not so subordinated, including its existing 1.75% Convertible Senior Notes due 2025 (the “2025 Notes”). The Notes will accrue interest payable semi-annually in arrears and will mature on June 1, 2028, unless earlier repurchased, redeemed or converted. The Notes will be convertible into shares of Insmed’s common stock, cash or a combination thereof, at Insmed’s election. The interest rate, conversion rate and other terms of the Notes will be determined at the time of pricing of the offering of the Notes.
Insmed Incorporated represents 103.04 million in outstanding shares, while the company has a total market value of $2.68 billion with the latest information. INSM stock price has been found in the range of $24.89 to $28.50.
If compared to the average trading volume of 922.28K shares, INSM reached a trading volume of 7254151 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Insmed Incorporated [INSM]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for INSM shares is $53.56 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on INSM stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Credit Suisse have made an estimate for Insmed Incorporated shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on April 26, 2021. While these analysts kept the previous recommendation, Berenberg raised their target price to Buy. The new note on the price target was released on December 17, 2020, representing the official price target for Insmed Incorporated stock. Previously, the target price had yet another raise to $44, while Stifel analysts kept a Buy rating on INSM stock.
The Average True Range (ATR) for Insmed Incorporated is set at 2.09, with the Price to Sales ratio for INSM stock in the period of the last 12 months amounting to 15.96. The Price to Book ratio for the last quarter was 13.26, with the Price to Cash per share for the same quarter was set at 3.98.
Trading performance analysis for INSM stock
Insmed Incorporated [INSM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -21.10. With this latest performance, INSM shares dropped by -18.01% in over the last four-week period, additionally sinking by -24.16% over the last 6 months – not to mention a rise of 11.59% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for INSM stock in for the last two-week period is set at 28.67, with the RSI for the last a single of trading hit 23.17, and the three-weeks RSI is set at 32.79 for Insmed Incorporated [INSM]. The present Moving Average for the last 50 days of trading for this stock 34.79, while it was recorded at 30.58 for the last single week of trading, and 34.83 for the last 200 days.
Insmed Incorporated [INSM]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Insmed Incorporated [INSM] shares currently have an operating margin of -161.32 and a Gross Margin at +72.71. Insmed Incorporated’s Net Margin is presently recorded at -178.87.
Return on Total Capital for INSM is now -39.60, given the latest momentum, and Return on Invested Capital for the company is -44.74. Return on Equity for this stock declined to -109.42, with Return on Assets sitting at -38.23. When it comes to the capital structure of this company, Insmed Incorporated [INSM] has a Total Debt to Total Equity ratio set at 146.74. Additionally, INSM Total Debt to Total Capital is recorded at 59.47, with Total Debt to Total Assets ending up at 50.85. Long-Term Debt to Equity for the company is recorded at 142.19, with the Long-Term Debt to Total Capital now at 57.63.
Reflecting on the efficiency of the workforce at the company, Insmed Incorporated [INSM] managed to generate an average of -$564,472 per employee. Receivables Turnover for the company is 9.19 with a Total Asset Turnover recorded at a value of 0.21.Insmed Incorporated’s liquidity data is similarly interesting compelling, with a Quick Ratio of 5.50 and a Current Ratio set at 6.20.
Insmed Incorporated [INSM]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Insmed Incorporated posted -0.64/share EPS, while the average EPS was predicted by analysts to be reported at -0.63/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -1.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for INSM.
An analysis of insider ownership at Insmed Incorporated [INSM]
There are presently around $3,555 million, in the hands of institutional investors. The top three institutional holders of INSM stocks are: FMR LLC with ownership of 12,088,544, which is approximately -20.586% of the company’s market cap and around 1.00% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 9,652,304 shares of the stock with an approximate value of $314.47 million in INSM stocks shares; and VANGUARD GROUP INC, currently with $305.05 million in INSM stock with ownership of nearly 2.163% of the company’s market capitalization.
Positions in Insmed Incorporated stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 97 institutional holders increased their position in Insmed Incorporated [NASDAQ:INSM] by around 11,351,578 shares. Additionally, 106 investors decreased positions by around 10,404,489 shares, while 29 investors held positions by with 87,360,255 shares. The mentioned changes placed institutional holdings at 109,116,322 shares, according to the latest SEC report filing. INSM stock had 28 new institutional investments in for a total of 3,554,463 shares, while 30 institutional investors sold positions of 1,516,782 shares during the same period.