NEW YORK ( TheStreet) -- Insmed (Nasdaq: INSM) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 5942.4% when compared to the same quarter one year ago, falling from $0.12 million to -$6.89 million.
  • INSMED INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, INSMED INC swung to a loss, reporting -$0.40 versus $9.60 in the prior year. For the next year, the market is expecting a contraction of 370.0% in earnings (-$1.88 versus -$0.40).
  • INSM, with its decline in revenue, underperformed when compared the industry average of 6.4%. Since the same quarter one year prior, revenues fell by 17.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • INSM's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 23.05, which clearly demonstrates the ability to cover short-term cash needs.
  • This stock has managed to rise its share value by 69.00% over the past twelve months. Although INSM had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.

Insmed Incorporated, a biopharmaceutical company, focuses on the development of inhaled pharmaceuticals for the site-specific treatment of serious lung diseases. Insmed has a market cap of $297.2 million and is part of the health care sector and drugs industry. Shares are up 87.5% year to date as of the close of trading on Thursday.

You can view the full Insmed Ratings Report or get investment ideas from our investment research center.