Alkeon Capital Management LLC Acquires 120,000 Shares of Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• Alkeon Capital Management doubled its stake in Madrigal Pharmaceuticals in the fourth quarter, buying 120,000 additional shares to hold 240,000 shares worth about $139.8 million, or 1.06% of the company.
• Wall Street remains broadly positive on MDGL, with analysts giving it a consensus Moderate Buy rating and an average target price of $687.93, despite some recent target cuts.
• Madrigal reported strong quarterly results, beating earnings and revenue estimates, while insiders also made notable sales and the stock recently traded around $499.76 per share.

Alkeon Capital Management LLC increased its holdings in shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) by 100.0% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 240,000 shares of the biopharmaceutical company's stock after buying an additional 120,000 shares during the quarter. Alkeon Capital Management LLC owned 1.06% of Madrigal Pharmaceuticals worth $139,762,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also modified their holdings of MDGL. Flagship Harbor Advisors LLC bought a new stake in shares of Madrigal Pharmaceuticals during the 4th quarter worth $29,000. Aventura Private Wealth LLC bought a new position in Madrigal Pharmaceuticals in the fourth quarter valued at about $36,000. Aster Capital Management DIFC Ltd bought a new position in Madrigal Pharmaceuticals in the third quarter valued at about $39,000. Quarry LP bought a new position in Madrigal Pharmaceuticals in the third quarter valued at about $39,000. Finally, Eastern Bank raised its position in Madrigal Pharmaceuticals by 32.3% in the fourth quarter. Eastern Bank now owns 86 shares of the biopharmaceutical company's stock valued at $50,000 after purchasing an additional 21 shares during the last quarter. 98.50% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

MDGL has been the subject of several research reports. HC Wainwright reiterated a "buy" rating and issued a $620.00 target price on shares of Madrigal Pharmaceuticals in a research report on Wednesday, May 6th. Citigroup reiterated a "market outperform" rating on shares of Madrigal Pharmaceuticals in a research report on Monday, June 1st. Bank of America dropped their target price on Madrigal Pharmaceuticals from $550.00 to $542.00 and set a "neutral" rating for the company in a research report on Thursday. Canaccord Genuity Group dropped their target price on Madrigal Pharmaceuticals from $587.00 to $578.00 and set a "buy" rating for the company in a research report on Thursday, May 7th. Finally, Evercore set a $649.00 target price on Madrigal Pharmaceuticals in a research report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $687.93.

Madrigal Pharmaceuticals Price Performance

Shares of MDGL opened at $499.76 on Tuesday. Madrigal Pharmaceuticals, Inc. has a 1 year low of $275.00 and a 1 year high of $615.00. The company has a debt-to-equity ratio of 0.63, a current ratio of 3.50 and a quick ratio of 3.16. The company has a market capitalization of $11.52 billion, a price-to-earnings ratio of -39.04 and a beta of -1.07. The business has a 50-day moving average of $511.60 and a 200-day moving average of $510.03.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last issued its earnings results on Wednesday, May 6th. The biopharmaceutical company reported ($3.25) earnings per share for the quarter, topping analysts' consensus estimates of ($3.61) by $0.36. The business had revenue of $311.34 million during the quarter, compared to the consensus estimate of $301.05 million. Madrigal Pharmaceuticals had a negative return on equity of 50.15% and a negative net margin of 27.32%.The firm's revenue for the quarter was up 126.8% on a year-over-year basis. During the same period in the previous year, the company posted ($3.32) earnings per share. As a group, equities research analysts anticipate that Madrigal Pharmaceuticals, Inc. will post -7.3 earnings per share for the current year.

Insider Buying and Selling

In other Madrigal Pharmaceuticals news, Director Richard S. Levy sold 5,682 shares of Madrigal Pharmaceuticals stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $515.44, for a total value of $2,928,730.08. Following the completion of the sale, the director directly owned 22,015 shares in the company, valued at approximately $11,347,411.60. The trade was a 20.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David Soergel sold 1,042 shares of Madrigal Pharmaceuticals stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $495.74, for a total value of $516,561.08. Following the completion of the sale, the insider owned 10,033 shares of the company's stock, valued at approximately $4,973,759.42. The trade was a 9.41% 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. Over the last quarter, insiders sold 7,568 shares of company stock valued at $3,880,711. 17.60% of the stock is currently owned by corporate insiders.

About Madrigal Pharmaceuticals

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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