Canaccord Genuity Group Forecasts Strong Price Appreciation for Madrigal Pharmaceuticals (NASDAQ:MDGL) Stock

Key Points

• Canaccord Genuity Group has raised its price target for Madrigal Pharmaceuticals from $420.00 to $428.00, indicating a potential 27.38% upside from the current price.
• Multiple research firms, including UBS Group and JMP Securities, have issued buy ratings and increased their price targets for Madrigal Pharmaceuticals, with UBS setting a target as high as $458.00.
• Madrigal Pharmaceuticals reported a significant rise in revenue of 1357.5% year-over-year, with quarterly earnings beating expectations at ($1.90) EPS against a consensus of ($3.48).

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) had its price target raised by equities research analysts at Canaccord Genuity Group from $420.00 to $428.00 in a report released on Wednesday,Benzinga reports. The firm currently has a "buy" rating on the biopharmaceutical company's stock. Canaccord Genuity Group's price objective suggests a potential upside of 27.38% from the company's current price.

Several other research firms have also recently weighed in on MDGL. UBS Group lifted their price target on Madrigal Pharmaceuticals from $441.00 to $458.00 and gave the stock a "buy" rating in a report on Friday, May 2nd. JMP Securities restated a "market outperform" rating and set a $443.00 price objective on shares of Madrigal Pharmaceuticals in a research report on Thursday, April 24th. B. Riley reiterated a "buy" rating and issued a $460.00 price target (up previously from $422.00) on shares of Madrigal Pharmaceuticals in a research report on Friday, May 2nd. Finally, Wall Street Zen upgraded Madrigal Pharmaceuticals from a "sell" rating to a "hold" rating in a research report on Monday, May 5th. Two research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat, Madrigal Pharmaceuticals currently has an average rating of "Moderate Buy" and an average price target of $421.63.

Madrigal Pharmaceuticals Stock Down 0.9%

Shares of NASDAQ:MDGL traded down $2.91 during mid-day trading on Wednesday, reaching $336.00. 194,822 shares of the stock were exchanged, compared to its average volume of 375,215. The company has a quick ratio of 5.58, a current ratio of 5.91 and a debt-to-equity ratio of 0.17. The stock's 50 day simple moving average is $297.49 and its 200-day simple moving average is $312.32. The company has a market cap of $7.46 billion, a P/E ratio of -18.60 and a beta of -1.02. Madrigal Pharmaceuticals has a one year low of $200.63 and a one year high of $377.46.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The biopharmaceutical company reported ($1.90) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($3.48) by $1.58. Madrigal Pharmaceuticals had a negative return on equity of 50.54% and a negative net margin of 123.38%. The company had revenue of $212.80 million during the quarter, compared to analysts' expectations of $158.94 million. During the same period last year, the firm posted ($7.10) earnings per share. The business's revenue was up 1357.5% on a year-over-year basis. As a group, equities research analysts predict that Madrigal Pharmaceuticals will post -23.47 EPS for the current year.

Insider Activity at Madrigal Pharmaceuticals

In other news, Director Paul A. Friedman sold 26,176 shares of the company's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $353.47, for a total value of $9,252,430.72. Following the completion of the transaction, the director directly owned 187,164 shares of the company's stock, valued at $66,156,859.08. This represents a 12.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Rebecca Taub sold 26,444 shares of the firm's stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $353.47, for a total value of $9,347,160.68. Following the completion of the sale, the director directly owned 461,044 shares of the company's stock, valued at $162,965,222.68. This represents a 5.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 60,377 shares of company stock valued at $21,316,969. 21.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

Large investors have recently made changes to their positions in the stock. VSM Wealth Advisory LLC bought a new stake in Madrigal Pharmaceuticals during the first quarter valued at $25,000. Accent Capital Management LLC purchased a new stake in Madrigal Pharmaceuticals during the first quarter valued at about $25,000. AlphaQuest LLC increased its holdings in shares of Madrigal Pharmaceuticals by 412.5% in the second quarter. AlphaQuest LLC now owns 82 shares of the biopharmaceutical company's stock worth $25,000 after buying an additional 66 shares during the period. Summit Securities Group LLC purchased a new position in shares of Madrigal Pharmaceuticals in the first quarter worth about $33,000. Finally, Farther Finance Advisors LLC increased its holdings in shares of Madrigal Pharmaceuticals by 825.0% in the first quarter. Farther Finance Advisors LLC now owns 111 shares of the biopharmaceutical company's stock worth $36,000 after buying an additional 99 shares during the period. 98.50% of the stock is owned by institutional investors.

Madrigal Pharmaceuticals Company Profile

Madrigal Pharmaceuticals, Inc, a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment of non-alcoholic steatohepatitis (NASH) in the United States. Its lead product candidate is resmetirom, a liver-directed thyroid hormone receptor beta agonist, which is in Phase 3 clinical trials for treating NASH.

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