Bank of America Corp DE Sells 226,498 Shares of Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• Bank of America reduced its Madrigal Pharmaceuticals stake by 54.4% in the first quarter, selling 226,498 shares and retaining 189,527 shares worth approximately $99.2 million. Institutional investors collectively own 98.5% of MDGL.
• 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 expectations of a $2.68 loss.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $689.93 versus the stock’s reported price of $510.04, although insiders sold shares under pre-arranged trading plans.

Bank of America Corp DE lowered its stake in Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) by 54.4% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 189,527 shares of the biopharmaceutical company's stock after selling 226,498 shares during the quarter. Bank of America Corp DE owned 0.82% of Madrigal Pharmaceuticals worth $99,212,000 at the end of the most recent quarter.

Other hedge funds have also added to or reduced their stakes in the company. Janus Henderson Group PLC lifted its holdings in Madrigal Pharmaceuticals by 27.4% in the first quarter. Janus Henderson Group PLC now owns 2,018,647 shares of the biopharmaceutical company's stock valued at $1,051,727,000 after acquiring an additional 433,804 shares during the period. Wellington Management Group LLP grew its stake in shares of Madrigal Pharmaceuticals by 5,381.2% during the 3rd quarter. Wellington Management Group LLP now owns 404,455 shares of the biopharmaceutical company's stock valued at $185,507,000 after purchasing an additional 397,076 shares during the period. Norges Bank bought a new stake in shares of Madrigal Pharmaceuticals during the 4th quarter valued at about $114,368,000. Deutsche Bank AG increased its position in shares of Madrigal Pharmaceuticals by 414.5% during the 4th quarter. Deutsche Bank AG now owns 192,109 shares of the biopharmaceutical company's stock valued at $111,873,000 after purchasing an additional 154,767 shares during the last quarter. Finally, Lord Abbett & CO. LLC increased its position in shares of Madrigal Pharmaceuticals by 139.7% during the 4th quarter. Lord Abbett & CO. LLC now owns 244,796 shares of the biopharmaceutical company's stock valued at $142,555,000 after purchasing an additional 142,653 shares during the last quarter. 98.50% of the stock is currently owned by hedge funds and other institutional investors.

Madrigal Pharmaceuticals Stock Performance

MDGL opened at $510.04 on Friday. The firm has a market cap of $11.78 billion, a P/E ratio of -39.57 and a beta of -1.01. Madrigal Pharmaceuticals, Inc. has a 1-year low of $339.31 and a 1-year high of $615.00. The company has a 50 day simple moving average of $515.31 and a two-hundred day simple moving average of $499.17. 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 (NASDAQ:MDGL - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The biopharmaceutical company reported ($1.99) earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $364.25 million during the quarter, compared to analysts' expectations of $352.13 million. During the same period in the prior year, the company posted ($1.90) earnings per share. The company's revenue for the quarter was up 71.2% compared to the same quarter last year. Equities analysts forecast that Madrigal Pharmaceuticals, Inc. will post -7.03 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research firms recently issued reports on MDGL. Barclays dropped their price objective on shares of Madrigal Pharmaceuticals from $964.00 to $962.00 and set an "overweight" rating on the stock in a report on Monday. Piper Sandler reiterated an "overweight" rating on shares of Madrigal Pharmaceuticals in a research report on Wednesday, June 24th. Wells Fargo & Company assumed coverage on shares of Madrigal Pharmaceuticals in a research note on Monday, July 27th. They set an "overweight" rating and a $685.00 price target on the stock. UBS Group reissued a "buy" rating on shares of Madrigal Pharmaceuticals in a research report on Friday, July 31st. Finally, Citigroup restated an "outperform" rating on shares of Madrigal Pharmaceuticals in a research note on Friday, July 17th. Fifteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $689.93.

Insider Activity

In related news, insider David Soergel sold 1,042 shares of the stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $495.74, for a total transaction of $516,561.08. Following the completion of the transaction, the insider directly owned 10,033 shares of the company's stock, valued at approximately $4,973,759.42. This represents a 9.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Richard S. Levy sold 5,682 shares of the company's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $515.44, for a total transaction of $2,928,730.08. Following 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 7,568 shares of company stock valued at $3,880,711 in the last quarter. 17.60% of the stock is currently owned by company 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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