Madrigal Pharmaceuticals (NASDAQ:MDGL) Stock Lifted to Buy by Wall Street Zen

Key Points

• Wall Street Zen upgraded Madrigal Pharmaceuticals to Buy from Hold. Analysts overall rate the stock “Moderate Buy,” with an average price target of $706.87.
• Madrigal reported quarterly EPS of $1.83, versus consensus expectations for a $1.09 loss, and revenue of $431.3 million, above the $404.2 million estimate. Real-world studies also reported improvements in liver stiffness and cardiometabolic markers among patients treated with Rezdiffra.
• Several law firms announced investigations into potential securities-law violations following the November 3 filing; these are investigations, not findings of wrongdoing, but may create legal and reputational uncertainty.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday, Wall Street Zen reports.

Several other research firms also recently issued reports on MDGL. Barclays dropped their price target on shares of Madrigal Pharmaceuticals from $964.00 to $962.00 and set an "overweight" rating for the company in a research note on Monday, August 3rd. HC Wainwright began coverage on shares of Madrigal Pharmaceuticals in a research note on Wednesday. They set a "strong-buy" rating on the stock. Wolfe Research upgraded shares of Madrigal Pharmaceuticals from a "peer perform" rating to an "outperform" rating and set a $605.00 target price for the company in a research note on Tuesday, August 4th. The Goldman Sachs Group began coverage on Madrigal Pharmaceuticals in a research note on Thursday, September 24th. They issued a "buy" rating and a $704.00 target price for the company. Finally, Citigroup raised their target price on Madrigal Pharmaceuticals from $725.00 to $760.00 and gave the stock a "buy" rating in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $706.87.

Madrigal Pharmaceuticals Stock Performance

NASDAQ MDGL opened at $399.63 on Friday. The company has a current ratio of 3.20, a quick ratio of 2.94 and a debt-to-equity ratio of 0.65. Madrigal Pharmaceuticals has a 12-month low of $353.54 and a 12-month high of $615.00. The business's 50 day moving average is $486.74 and its two-hundred day moving average is $497.41.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last announced its earnings results on Tuesday, November 3rd. The biopharmaceutical company reported $1.83 earnings per share for the quarter, beating the consensus estimate of ($1.09) by $2.92. The firm had revenue of $431.27 million for the quarter, compared to the consensus estimate of $404.17 million. Madrigal Pharmaceuticals had a negative return on equity of 56.65% and a negative net margin of 25.32%. During the same quarter in the previous year, the business earned ($5.08) EPS. As a group, analysts expect that Madrigal Pharmaceuticals will post -3.78 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO William Sibold sold 5,221 shares of Madrigal Pharmaceuticals stock in a transaction on Friday, September 11th. The shares were sold at an average price of $542.39, for a total transaction of $2,831,818.19. Following the transaction, the chief executive officer owned 197,746 shares in the company, valued at approximately $107,255,452.94. The trade was a 2.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Shannon Kelley sold 1,077 shares of the business's stock in a transaction on Friday, November 6th. The stock was sold at an average price of $400.00, for a total value of $430,800.00. Following the sale, the general counsel directly owned 10,397 shares in the company, valued at $4,158,800. This trade represents a 9.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 13,324 shares of company stock worth $7,011,982. 17.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

Several large investors have recently modified their holdings of the stock. Janus Henderson Group PLC lifted its holdings in shares of Madrigal Pharmaceuticals by 27.4% during the 1st quarter. Janus Henderson Group PLC now owns 2,018,647 shares of the biopharmaceutical company's stock worth $1,051,727,000 after acquiring an additional 433,804 shares during the period. Jupiter Topco LLC acquired a new position in Madrigal Pharmaceuticals in the 2nd quarter worth $1,039,650,000. Paulson & CO. Inc. bought a new position in Madrigal Pharmaceuticals during the 2nd quarter worth $719,524,000. BlackRock Inc. acquired a new position in Madrigal Pharmaceuticals in the 2nd quarter valued at approximately $644,753,000. Finally, Wellington Management Group LLP boosted its holdings in Madrigal Pharmaceuticals by 18.8% during the 2nd quarter. Wellington Management Group LLP now owns 825,714 shares of the biopharmaceutical company's stock worth $443,367,000 after acquiring an additional 130,756 shares during the last quarter. Hedge funds and other institutional investors own 98.50% of the company's stock.

Key Headlines Impacting Madrigal Pharmaceuticals

Here are the key news stories impacting Madrigal Pharmaceuticals this week:

• Positive Sentiment: Multiple real-world studies presented at AASLD reported improvements in liver stiffness and cardiometabolic health markers among patients treated with Rezdiffra, supporting the drug’s real-world potential. Rezdiffra real-world data
• Positive Sentiment: Madrigal’s latest quarterly results beat estimates: EPS was $1.83 versus consensus of a $1.09 loss, and revenue of $431.3 million exceeded the $404.2 million estimate. Madrigal stock jumps after earnings beat
• Positive Sentiment: HC Wainwright reiterated a Strong-Buy rating and projected rising EPS through 2030; Canaccord Genuity also raised its price target to $633 and maintained a Buy rating. These forecasts point to optimism about future growth, though they are analyst expectations, not guarantees.
• Neutral Sentiment: General Counsel Shannon Kelley sold 1,077 shares for about $430,800 under a pre-arranged Rule 10b5-1 plan. Kelley retained 10,397 shares, which may temper concern about the sale.
• Negative Sentiment: Several law firms announced investigations into potential securities-law violations after Madrigal’s November 3 quarterly filing. These are investigations and investor solicitations—not findings of wrongdoing—but could create legal and reputational uncertainty. Securities investigation announcement

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing medicines for nonalcoholic steatohepatitis, now known as metabolic dysfunction-associated steatohepatitis (MASH), and other chronic liver diseases. The company is headquartered in West Conshohocken, Pennsylvania.

Madrigal's lead product is Rezdiffra (resmetirom), an orally administered thyroid hormone receptor beta agonist designed to target key drivers of liver disease, including hepatic fat accumulation and fibrosis.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.