BlackRock Inc. Acquires New Position in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• BlackRock acquired 1.2 million shares of Madrigal Pharmaceuticals in the second quarter, valued at approximately $644.8 million and representing a 5.2% stake. Institutional investors collectively own 98.5% of MDGL.
• Wall Street remains broadly optimistic, with 15 analysts rating the stock Buy, two Hold, and one Sell. The consensus rating is “Moderate Buy,” with an average price target of $689.93.
• Madrigal reported better-than-expected quarterly results, posting an adjusted loss of $1.99 per share versus the $2.68 consensus estimate and revenue of $364.25 million, up 71.2% year over year.

BlackRock Inc. acquired a new position in shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 1,200,770 shares of the biopharmaceutical company's stock, valued at approximately $644,753,000. BlackRock Inc. owned about 5.20% of Madrigal Pharmaceuticals at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of MDGL. Persistent Asset Partners Ltd acquired a new stake in shares of Madrigal Pharmaceuticals during the 2nd quarter worth approximately $29,000. Global Retirement Partners LLC purchased a new stake in shares of Madrigal Pharmaceuticals during the 2nd quarter valued at approximately $34,000. Kemnay Advisory Services Inc. acquired a new position in Madrigal Pharmaceuticals in the fourth quarter valued at approximately $39,000. Quarry LP acquired a new position in Madrigal Pharmaceuticals in the third quarter valued at approximately $39,000. Finally, Accent Capital Management LLC grew its position in Madrigal Pharmaceuticals by 64.9% in the fourth quarter. Accent Capital Management LLC now owns 94 shares of the biopharmaceutical company's stock worth $55,000 after acquiring an additional 37 shares during the period. 98.50% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, insider David Soergel sold 1,042 shares of the company's stock in a transaction 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 owned 10,033 shares in the company, valued at $4,973,759.42. This represents a 9.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Shannon T. Kelley sold 664 shares of the stock in a transaction 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 sale, the general counsel owned 11,474 shares of the company's stock, valued at approximately $5,908,765.78. This represents a 5.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 17.60% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have commented on MDGL. Piper Sandler restated an "overweight" rating on shares of Madrigal Pharmaceuticals in a research report on Wednesday, June 24th. Barclays cut their price objective on Madrigal Pharmaceuticals from $964.00 to $962.00 and set an "overweight" rating for the company in a research report on Monday, August 3rd. Citigroup restated an "outperform" rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 17th. HC Wainwright reaffirmed a "buy" rating on shares of Madrigal Pharmaceuticals in a research report on Friday, July 31st. Finally, Truist Financial increased their target price on shares of Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the stock a "buy" rating in a research note on Wednesday, May 13th. Fifteen analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Madrigal Pharmaceuticals presently has an average rating of "Moderate Buy" and a consensus target price of $689.93.

Madrigal Pharmaceuticals Price Performance

NASDAQ:MDGL opened at $516.74 on Monday. The stock has a market capitalization of $11.94 billion, a price-to-earnings ratio of -40.09 and a beta of -1.01. The company has a quick ratio of 2.94, a current ratio of 3.20 and a debt-to-equity ratio of 0.65. Madrigal Pharmaceuticals, Inc. has a 52 week low of $393.61 and a 52 week high of $615.00. The stock's fifty day moving average is $524.40 and its two-hundred day moving average is $501.10.

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

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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