Is Insmed Stock Built to Withstand More Downside?

Insmed (INSM) stock is down 16.9% in 21 trading days. The recent slide reflects renewed concerns around the failed Phase 2b brensocatib study in CRSsNP, 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 $35 Bil company with $447 Mil in revenue currently trading at $163.72.
• 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 -29.3 and P/EBIT multiple of -31.5
• Has returned (median) 52.8% 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 $115 – 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.

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 $163.72

 
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

 
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

 
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

 
Feeling jittery about INSM stock? Consider portfolio approach.

Move Beyond Single Stocks With A Multi Asset Portfolio

Markets move differently but a mix of assets smooths volatility. A multi asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices