Allworth Financial LP Buys New Position in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• Allworth Financial initiated a position in Madrigal Pharmaceuticals during the second quarter, purchasing 3,562 shares worth approximately $1.9 million. Institutional investors collectively own 98.5% of the company.
• Madrigal reported quarterly revenue of $364.25 million, up 71.2% year over year, and an adjusted loss of $1.99 per share that beat analyst estimates. The company remains unprofitable, with analysts forecasting a full-year loss of $7.03 per share.
• Analyst sentiment is broadly positive: MDGL has a “Moderate Buy” consensus rating and an average price target of $689.93, compared with a reported share price of $516.74.

Allworth Financial LP bought a new position in shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The fund bought 3,562 shares of the biopharmaceutical company's stock, valued at approximately $1,913,000.

Several other hedge funds and other institutional investors also recently modified their holdings of MDGL. Persistent Asset Partners Ltd acquired a new position in Madrigal Pharmaceuticals during the 2nd quarter valued at about $29,000. Global Retirement Partners LLC purchased a new stake in shares of Madrigal Pharmaceuticals in the second quarter worth approximately $34,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Madrigal Pharmaceuticals in the fourth quarter worth approximately $39,000. Quarry LP acquired a new stake in shares of Madrigal Pharmaceuticals during the third quarter worth approximately $39,000. Finally, Johnson Financial Group Inc. acquired a new stake in shares of Madrigal Pharmaceuticals during the third quarter worth approximately $50,000. Institutional investors own 98.50% of the company's stock.

Madrigal Pharmaceuticals Price Performance

Shares of Madrigal Pharmaceuticals stock opened at $516.74 on Friday. Madrigal Pharmaceuticals, Inc. has a 1-year low of $393.61 and a 1-year high of $615.00. The firm's 50-day moving average price is $524.40 and its two-hundred day moving average price is $501.02. The company has a current ratio of 3.20, a quick ratio of 2.94 and a debt-to-equity ratio of 0.65. The stock has a market capitalization of $11.94 billion, a price-to-earnings ratio of -40.09 and a beta of -1.01.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last issued its earnings results 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 net margin of 25.32% and a negative return on equity of 56.65%. The company had revenue of $364.25 million during the quarter, compared to analysts' expectations of $352.13 million. During the same quarter in the previous year, the company posted ($1.90) EPS. The business's revenue for the quarter was up 71.2% compared to the same quarter last year. On average, equities analysts predict that Madrigal Pharmaceuticals, Inc. will post -7.03 earnings per share for the current fiscal year.

Insider Activity

In other news, General Counsel Shannon T. Kelley sold 664 shares of the company's stock in a transaction dated 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 transaction, the general counsel directly owned 11,474 shares of the company's stock, valued at $5,908,765.78. This represents a 5.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David Soergel sold 1,042 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $495.74, for a total value of $516,561.08. Following the completion of the sale, the insider directly 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 17.60% of the company's stock.

Analysts Set New Price Targets

MDGL has been the topic of several research reports. Wolfe Research upgraded shares of Madrigal Pharmaceuticals from a "peer perform" rating to an "outperform" rating and set a $605.00 price objective on the stock in a research note on Tuesday, August 4th. Canaccord Genuity Group lifted their target price 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. Wells Fargo & Company initiated coverage on shares of Madrigal Pharmaceuticals in a research note on Monday, July 27th. They issued an "overweight" rating and a $685.00 price target on the stock. UBS Group reiterated a "buy" rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 31st. Finally, Piper Sandler reissued an "overweight" rating on shares of Madrigal Pharmaceuticals in a research report on Wednesday, June 24th. Fifteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $689.93.

Madrigal Pharmaceuticals 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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