Avoro Capital Advisors LLC Cuts Holdings in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• Avoro Capital trimmed its stake by 2.2% (sold 42,000 shares) to 1,833,000 shares but still owns roughly 8.07% of Madrigal (about $840.7M) and the stock is Avoro's third-largest position.
• Madrigal missed on EPS (‑$2.57 vs. $0.04 est.) while revenue jumped 210.8% to $321.1M; analysts remain largely bullish with a consensus "Moderate Buy" rating and an average price target of $685.31 (some targets up to $900).
• Company insiders have been net sellers recently — 55,612 shares sold over the last three months (≈$28.3M), leaving insiders with a 21.5% ownership stake.

Avoro Capital Advisors LLC decreased its position in Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) by 2.2% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,833,000 shares of the biopharmaceutical company's stock after selling 42,000 shares during the quarter. Madrigal Pharmaceuticals makes up 10.9% of Avoro Capital Advisors LLC's portfolio, making the stock its 3rd biggest position. Avoro Capital Advisors LLC owned approximately 8.07% of Madrigal Pharmaceuticals worth $840,724,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Wellington Management Group LLP raised its holdings in Madrigal Pharmaceuticals by 5,381.2% in the 3rd quarter. Wellington Management Group LLP now owns 404,455 shares of the biopharmaceutical company's stock worth $185,507,000 after acquiring an additional 397,076 shares during the last quarter. Adage Capital Partners GP L.L.C. boosted its holdings in shares of Madrigal Pharmaceuticals by 96.3% during the 2nd quarter. Adage Capital Partners GP L.L.C. now owns 376,163 shares of the biopharmaceutical company's stock valued at $113,842,000 after acquiring an additional 184,554 shares during the last quarter. Norges Bank bought a new stake in shares of Madrigal Pharmaceuticals in the second quarter worth approximately $53,406,000. Invesco Ltd. raised its holdings in shares of Madrigal Pharmaceuticals by 49.5% during the third quarter. Invesco Ltd. now owns 299,565 shares of the biopharmaceutical company's stock valued at $137,398,000 after purchasing an additional 99,209 shares during the last quarter. Finally, BNP Paribas Financial Markets lifted its position in Madrigal Pharmaceuticals by 1,886.1% during the second quarter. BNP Paribas Financial Markets now owns 69,037 shares of the biopharmaceutical company's stock valued at $20,893,000 after purchasing an additional 65,561 shares during the period. Hedge funds and other institutional investors own 98.50% of the company's stock.

Insiders Place Their Bets

In related news, insider Carole Huntsman sold 419 shares of the company's stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $431.94, for a total transaction of $180,982.86. Following the completion of the sale, the insider owned 12,692 shares of the company's stock, valued at approximately $5,482,182.48. This represents a 3.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Shannon T. Kelley sold 360 shares of the business's stock in a transaction on Friday, March 6th. The stock was sold at an average price of $431.94, for a total value of $155,498.40. Following the transaction, the general counsel directly owned 12,138 shares in the company, valued at $5,242,887.72. This trade represents a 2.88% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 55,612 shares of company stock valued at $28,326,065. Corporate insiders own 21.50% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on MDGL shares. Truist Financial raised their price objective on shares of Madrigal Pharmaceuticals from $580.00 to $640.00 and gave the stock a "buy" rating in a report on Wednesday, November 19th. Piper Sandler increased their price target on shares of Madrigal Pharmaceuticals from $540.00 to $900.00 and gave the stock an "overweight" rating in a research report on Friday, December 19th. Citigroup reiterated an "outperform" rating on shares of Madrigal Pharmaceuticals in a research note on Tuesday, January 20th. Zacks Research raised shares of Madrigal Pharmaceuticals from a "strong sell" rating to a "hold" rating in a research report on Friday, February 20th. Finally, Wolfe Research set a $579.00 price objective on Madrigal Pharmaceuticals in a research note on Tuesday, January 6th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $685.31.

Madrigal Pharmaceuticals Stock Performance

Shares of MDGL opened at $444.83 on Friday. The stock has a 50-day moving average of $477.62 and a two-hundred day moving average of $487.95. The stock has a market cap of $10.20 billion, a P/E ratio of -34.56 and a beta of -0.97. Madrigal Pharmaceuticals, Inc. has a one year low of $265.00 and a one year high of $615.00. The company has a debt-to-equity ratio of 0.56, a quick ratio of 3.77 and a current ratio of 4.01.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last announced its earnings results on Thursday, February 19th. The biopharmaceutical company reported ($2.57) earnings per share for the quarter, missing the consensus estimate of $0.04 by ($2.61). Madrigal Pharmaceuticals had a negative return on equity of 43.76% and a negative net margin of 30.08%.The business had revenue of $321.08 million for the quarter, compared to analyst estimates of $310.36 million. During the same period in the previous year, the company earned ($2.71) earnings per share. The company's quarterly revenue was up 210.8% compared to the same quarter last year. As a group, research analysts predict that Madrigal Pharmaceuticals, Inc. will post -23.47 EPS for the current year.

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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