Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) Stock Now Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Wall Street remains broadly positive: Eighteen analysts rate Madrigal Pharmaceuticals “Moderate Buy,” including 15 buys, two holds and one sell, with an average 12-month price target of $710.20 versus a recent price near $513.
• Quarterly results exceeded expectations: Madrigal reported adjusted EPS of -$1.99 versus the -$2.68 consensus estimate, while revenue rose 71.2% year over year to $364.25 million.
• Insider selling contrasted with strong institutional ownership: Insiders sold $6.58 million of shares in the last quarter, primarily for tax obligations, while institutional investors own approximately 98.5% of the company.

Shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the eighteen research firms that are presently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, two have assigned 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 $710.20.

A number of analysts have commented on MDGL shares. The Goldman Sachs Group started coverage on shares of Madrigal Pharmaceuticals in a research note on Thursday. They set a "buy" rating and a $704.00 price target for the company. Canaccord Genuity Group raised 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. UBS Group reiterated a "buy" rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 31st. Piper Sandler reissued an "overweight" rating on shares of Madrigal Pharmaceuticals in a research report on Wednesday, June 24th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Madrigal Pharmaceuticals in a research report on Friday, July 17th.

Insider Transactions at Madrigal Pharmaceuticals

In other Madrigal Pharmaceuticals news, General Counsel Shannon Kelley sold 664 shares of the business's stock in a transaction that occurred on Monday, August 17th. The stock was 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 of the company's stock, valued at approximately $5,908,765.78. The trade was a 5.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William Sibold sold 6,362 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $535.59, for a total value of $3,407,423.58. Following the completion of the sale, the chief executive officer directly owned 202,967 shares of the company's stock, valued at approximately $108,707,095.53. This trade represents a 3.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Insiders have sold a total of 12,247 shares of company stock valued at $6,581,182 in the last quarter. Company insiders own 17.60% of the company's stock.

Institutional Investors Weigh In On Madrigal Pharmaceuticals

Several institutional investors have recently bought and sold shares of MDGL. Concurrent Investment Advisors LLC lifted its holdings in shares of Madrigal Pharmaceuticals by 2.0% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 1,034 shares of the biopharmaceutical company's stock worth $555,000 after acquiring an additional 20 shares during the last quarter. GAMMA Investing LLC grew its holdings in shares of Madrigal Pharmaceuticals by 35.4% during the 2nd quarter. GAMMA Investing LLC now owns 172 shares of the biopharmaceutical company's stock valued at $92,000 after purchasing an additional 45 shares during the last quarter. Persistent Asset Partners Ltd bought a new position in shares of Madrigal Pharmaceuticals during the 2nd quarter valued at $29,000. Arizona State Retirement System raised its position in Madrigal Pharmaceuticals by 1.5% in the 2nd quarter. Arizona State Retirement System now owns 4,114 shares of the biopharmaceutical company's stock worth $2,209,000 after purchasing an additional 60 shares during the period. Finally, Global Retirement Partners LLC purchased a new position in Madrigal Pharmaceuticals in the 2nd quarter worth $34,000. Institutional investors own 98.50% of the company's stock.

Madrigal Pharmaceuticals Stock Up 0.0%

Shares of NASDAQ:MDGL opened at $513.21 on Friday. The business's 50 day simple moving average is $527.49 and its two-hundred day simple moving average is $513.78. The firm has a market cap of $11.86 billion, a P/E ratio of -39.81 and a beta of -0.98. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.94 and a current ratio of 3.20. Madrigal Pharmaceuticals has a 52-week low of $393.61 and a 52-week high of $615.00.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The biopharmaceutical company reported ($1.99) EPS for the quarter, beating the consensus estimate of ($2.68) by $0.69. Madrigal Pharmaceuticals had a negative return on equity of 56.65% and a negative net margin of 25.32%.The firm had revenue of $364.25 million during the quarter, compared to the consensus estimate of $352.13 million. During the same quarter in the previous year, the company posted ($1.90) earnings per share. The company's quarterly revenue was up 71.2% on a year-over-year basis. As a group, research analysts forecast that Madrigal Pharmaceuticals will post -7.03 EPS for the current fiscal year.

Madrigal Pharmaceuticals Company Profile

Madrigal Pharmaceuticals, Inc NASDAQ: MDGL is a biopharmaceutical company focused on developing and commercializing therapies for cardiometabolic diseases, particularly nonalcoholic steatohepatitis, now commonly referred to as metabolic dysfunction-associated steatohepatitis (MASH).

The company's lead product is Rezdiffra (resmetirom), an oral, thyroid hormone receptor beta agonist designed to target underlying liver disease. In 2024, the U.S. Food and Drug Administration approved Rezdiffra for use with diet and exercise to treat adults with noncirrhotic MASH and moderate to advanced liver fibrosis.

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