Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is broadly positive: Eighteen firms give Madrigal Pharmaceuticals a consensus “Moderate Buy” rating, including 15 buys, two holds and one sell. The average 12-month price target is approximately $699.64.
• Madrigal reported quarterly EPS of -$1.99, beating the consensus estimate of -$2.68, while revenue reached $364.25 million, up 71.2% year over year and above expectations.
• Institutional investors own 98.5% of the stock, with several large funds increasing or initiating positions; insiders own 17.6%, while the general counsel recently sold shares to cover tax withholding obligations.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report) has earned an average recommendation of "Moderate Buy" from the eighteen research firms that are currently covering the company, Marketbeat reports. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and fifteen have issued a buy rating on the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $699.6429.

MDGL has been the subject of a number of research reports. HC Wainwright reiterated a "buy" rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 31st. Canaccord Genuity Group upped their price objective on shares of Madrigal Pharmaceuticals from $578.00 to $587.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. Barclays reduced their target price on shares of Madrigal Pharmaceuticals from $964.00 to $962.00 and set an "overweight" rating on the stock in a report on Monday, August 3rd. Evercore set a $649.00 target price on Madrigal Pharmaceuticals in a research note on Thursday, May 7th. Finally, Piper Sandler restated an "overweight" rating on shares of Madrigal Pharmaceuticals in a research report on Wednesday, June 24th.

Madrigal Pharmaceuticals Price Performance

MDGL stock opened at $533.76 on Monday. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.20 and a quick ratio of 2.94. Madrigal Pharmaceuticals has a one year low of $393.61 and a one year high of $615.00. The stock has a market cap of $12.33 billion, a PE ratio of -41.41 and a beta of -1.01. The firm has a 50 day simple moving average of $526.96 and a two-hundred day simple moving average of $502.86.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The biopharmaceutical company reported ($1.99) EPS for the quarter, topping analysts' consensus estimates of ($2.68) by $0.69. The firm had revenue of $364.25 million for the quarter, compared to analyst estimates of $352.13 million. Madrigal Pharmaceuticals had a negative net margin of 25.32% and a negative return on equity of 56.65%. The business's revenue for the quarter was up 71.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($1.90) EPS. On average, analysts predict that Madrigal Pharmaceuticals will post -7.03 EPS for the current fiscal year.

Insider Activity at Madrigal Pharmaceuticals

In related news, General Counsel Shannon T. Kelley sold 664 shares of the company's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $514.97, for a total transaction of $341,940.08. Following the completion of the sale, the general counsel directly owned 11,474 shares in the company, valued at $5,908,765.78. This represents a 5.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 17.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

Institutional investors and hedge funds have recently modified their holdings of the stock. California State Teachers Retirement System lifted its position in shares of Madrigal Pharmaceuticals by 54,067.5% during the 2nd quarter. California State Teachers Retirement System now owns 9,233,929 shares of the biopharmaceutical company's stock valued at $4,958,158,000 after buying an additional 9,216,882 shares in the last quarter. Janus Henderson Group PLC raised its stake in 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 bought a new stake in Madrigal Pharmaceuticals during the 2nd quarter worth approximately $1,039,650,000. Paulson & CO. Inc. bought a new stake in Madrigal Pharmaceuticals during the 2nd quarter worth approximately $719,524,000. Finally, BlackRock Inc. purchased a new position in Madrigal Pharmaceuticals during the second quarter valued at approximately $644,753,000. 98.50% of the stock is currently owned by institutional investors.

Madrigal Pharmaceuticals Company Profile

Madrigal Pharmaceuticals, Inc is a clinical-stage biopharmaceutical company focused on the development of innovative therapies for cardiovascular, metabolic and liver diseases. The company's pipeline centers on novel, liver-directed agents designed to address significant unmet medical needs, with an emphasis on nonalcoholic steatohepatitis (NASH) and related metabolic disorders.

The lead product candidate, resmetirom (MGL-3196), is an orally administered, selective thyroid hormone receptor-β agonist in Phase 3 development for the treatment of NASH.

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