While Insmed Incorporated (NASDAQ:INSM) shareholders are probably generally happy, the stock hasn’t had particularly good run recently, with the share price falling 27% in the last quarter. But the silver lining is the stock is up over five years. In that time, it is up 49%, which isn’t bad, but is below the market return of 62%.
Because Insmed is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn’t make profits, we’d generally expect to see good revenue growth. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
The graphic below depicts how revenue has changed over time.
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
Insmed provided a TSR of 0.6% over the last twelve months. Unfortunately this falls short of the market return. On the bright side, the longer term returns (running at about 8.2% a year, over half a decade) look better. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares – and the price they paid.
Insmed is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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