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Diversified Opportunities Report

Insmed Incorporated

Jul 13, 2023

INSM:NASDAQ
Investment Type
Mid - Cap
Risk Level
Action
Rec. Price (US$)

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Insmed Incorporated (NASDAQ: INSM) is a biopharmaceutical company. It is engaged in providing ARIKAYCE (amikacin liposome inhalation suspension) product, which is used for the treatment of Mycobacterium avium complex lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options.

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

  • The stock has given a return of 22.20% in the last three months as well as by 9.19% in past six months.
  • The stock is leaning towards its lower band of its 52-week range of USD 28.94 and 52-week low price of USD 16.04. Post the announcement of Q1FY23 results the stock returned by 4.60% with a consolidation between 18.50-USD 21.50.
  • The price is currently trading above both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 53.58.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

Over the past five years, INSM has managed to consistently grow its revenues and gross profit, showing an upward trend. Moreover, the company has maintained a remarkable gross margin ratio of over 75% during this period. The consistent uptrend in INSM's revenues and gross profit suggests that the company has implemented effective strategies to drive growth and increase profitability. Additionally, maintaining a high gross margin ratio indicates that INSM has been able to efficiently manage its production costs and generate substantial profits from its sales. These financial achievements demonstrate INSM's ability to navigate the market successfully and maintain a strong financial position over the past five years.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~52.97% of the total shareholding, signifying diverse shareholding. The Vanguard Group, Inc. and T. Rowe Price Associates, Inc. are the biggest shareholders, holding the maximum stake in the company at ~9.77% and ~7.15 %, respectively.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q1FY23:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

  • The stock has given a return of 22.20% in the last three months as well as by 9.19% in past six months.
  • The stock is leaning towards its lower band of its 52-week range of USD 28.94 and 52-week low price of USD 16.04. Post the announcement of Q1FY23 results the stock returned by 4.60% with a consolidation between 18.50-USD 21.50.
  • The price is currently trading above both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 53.58.

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 12, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.


Disclaimer-

Kalkine Equities LLC provides general information about companies and their securities. The information contained in the reports, including any recommendations regarding the value of or transactions in any securities, does not take into account any of your investment objectives, financial situation or needs. Kalkine Equities LLC is not registered as an investment adviser in the U.S. with either the federal or state government. Before you make a decision about whether to invest in any securities, you should take into account your own objectives, financial situation and needs and seek independent financial advice. All information in our reports represents our views as at the date of publication and may change without notice.

Kalkine Media LLC, an affiliate of Kalkine Equities LLC, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.