Insmed Stock Drop Looks Sharp, But How Deep Can It Go?
Insmed (INSM) stock is down 14.3% in 21 trading days. The recent slide reflects renewed concerns following the failed CRSsNP trial, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Insmed stands today.
- Size: Insmed is a $38 Bil company with $447 Mil in revenue currently trading at $177.42.
- Fundamentals: Last 12 month revenue growth of 30.3% and operating margin of -221.5%.
- Liquidity: Has Debt to Equity ratio of 0.02 and Cash to Assets ratio of 0.71
- Valuation: Insmed stock is currently trading at P/E multiple of -31.7 and P/EBIT multiple of -34.1
- Has returned (median) -23.1% within a year following sharp dips since 2010. See INSM Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Very High valuation – making the stock Unattractive. For details, see Buy or Sell INSM Stock
That brings us to the key consideration for investors worried about this fall: how resilient is INSM stock if markets turn south? This is where our downturn resilience framework comes in. Suppose INSM stock falls another 20-30% to $124 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- INSM stock fell 63.3% from a high of $44.30 on 8 February 2021 to $16.26 on 22 March 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 28 May 2024
- Since then, the stock increased to a high of $211.41 on 1 December 2025 , and currently trades at $177.42
| INSM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -63.3% | -25.4% |
| Time to Full Recovery | 433 days | 464 days |
2020 Covid Pandemic
- INSM stock fell 59.9% from a high of $33.98 on 5 February 2020 to $13.63 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 September 2020
| INSM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -59.9% | -33.9% |
| Time to Full Recovery | 177 days | 148 days |
2018 Correction
- INSM stock fell 64.8% from a high of $32.99 on 3 January 2018 to $11.60 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 February 2020
| INSM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -64.8% | -19.8% |
| Time to Full Recovery | 407 days | 120 days |
2008 Global Financial Crisis
- INSM stock fell 77.6% from a high of $156.00 on 2 March 2007 to $34.99 on 6 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 May 2009
| INSM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -77.6% | -56.8% |
| Time to Full Recovery | 193 days | 1,480 days |
Feeling jittery about INSM stock? Consider portfolio approach.
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