Castleark Management LLC Decreases Holdings in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• Castleark Management cut its Madrigal Pharmaceuticals stake by 63.4% in the first quarter, selling 9,170 shares and retaining 5,296 shares valued at approximately $2.77 million. Institutional investors collectively own 98.5% of the company.
• Madrigal reported quarterly revenue of $311.34 million, up 126.8% year over year, and an adjusted loss of $3.25 per share, beating analysts’ expectations. Shares opened at $551.25, up 1.2%.
• Analyst sentiment remains favorable, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $687.73, although insiders sold 7,568 shares worth about $3.88 million over the past 90 days.

Castleark Management LLC trimmed its position in shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) by 63.4% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 5,296 shares of the biopharmaceutical company's stock after selling 9,170 shares during the quarter. Castleark Management LLC's holdings in Madrigal Pharmaceuticals were worth $2,772,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also recently modified their holdings of the company. Flagship Harbor Advisors LLC purchased a new stake in Madrigal Pharmaceuticals during the fourth quarter valued at $29,000. Kemnay Advisory Services Inc. bought a new position in shares of Madrigal Pharmaceuticals in the 4th quarter worth approximately $39,000. Quarry LP bought a new position in shares of Madrigal Pharmaceuticals in the 3rd quarter worth approximately $39,000. Eastern Bank lifted its stake in shares of Madrigal Pharmaceuticals by 32.3% in the 4th quarter. Eastern Bank now owns 86 shares of the biopharmaceutical company's stock worth $50,000 after purchasing an additional 21 shares during the period. Finally, Johnson Financial Group Inc. purchased a new position in shares of Madrigal Pharmaceuticals in the third quarter worth approximately $50,000. 98.50% of the stock is currently owned by hedge funds and other institutional investors.

Madrigal Pharmaceuticals Stock Up 1.2%

Shares of MDGL stock opened at $551.25 on Tuesday. The company has a market capitalization of $12.71 billion, a price-to-earnings ratio of -43.07 and a beta of -1.05. Madrigal Pharmaceuticals, Inc. has a one year low of $286.44 and a one year high of $615.00. The company's fifty day moving average price is $516.68 and its 200-day moving average price is $499.64. The company has a debt-to-equity ratio of 0.63, a current ratio of 3.50 and a quick ratio of 3.16.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last released its earnings results on Wednesday, May 6th. The biopharmaceutical company reported ($3.25) earnings per share for the quarter, beating analysts' consensus estimates of ($3.61) by $0.36. The company had revenue of $311.34 million for the quarter, compared to analysts' expectations of $301.05 million. Madrigal Pharmaceuticals had a negative net margin of 27.32% and a negative return on equity of 50.15%. Madrigal Pharmaceuticals's revenue for the quarter was up 126.8% on a year-over-year basis. During the same quarter in the previous year, the company earned ($3.32) EPS. Sell-side analysts expect that Madrigal Pharmaceuticals, Inc. will post -7.45 EPS for the current fiscal year.

Insider Transactions at Madrigal Pharmaceuticals

In related news, 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 transaction of $516,561.08. Following the sale, the insider owned 10,033 shares of the company's stock, valued at approximately $4,973,759.42. This trade represents a 9.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 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 transaction, the director owned 22,015 shares of the company's stock, valued at $11,347,411.60. The trade was a 20.51% 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. In the last ninety days, insiders sold 7,568 shares of company stock valued at $3,880,711. Corporate insiders own 17.60% of the company's stock.

Analyst Ratings Changes

MDGL has been the subject of several recent research reports. Truist Financial boosted their target price on shares of Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the company a "buy" rating in a research report on Wednesday, May 13th. Wells Fargo & Company began coverage on shares of Madrigal Pharmaceuticals in a research report on Monday. They issued an "overweight" rating and a $685.00 price target on the stock. Evercore set a $649.00 price target on shares of Madrigal Pharmaceuticals in a research note on Thursday, May 7th. Canaccord Genuity Group cut their price objective on shares of 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, Weiss Ratings restated a "sell (d-)" rating on shares of Madrigal Pharmaceuticals in a research note on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $687.73.

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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