CI Investments Inc. Invests $1.06 Million in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• CI Investments Inc. disclosed a new first-quarter stake in Madrigal Pharmaceuticals, buying 2,021 shares valued at about $1.06 million.
• Institutional ownership remains very high, with the article noting that 98.5% of Madrigal’s stock is held by hedge funds and other institutional investors. Several large firms also increased their positions recently.
• The company reported quarterly results that beat EPS and revenue expectations, while analysts remain mostly bullish: Madrigal has a consensus rating of Moderate Buy and an average price target of $687.93.

CI Investments Inc. acquired a new stake in shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 2,021 shares of the biopharmaceutical company's stock, valued at approximately $1,058,000.

Several other large investors have also recently made changes to their positions in the business. Wellington Management Group LLP increased its position in Madrigal Pharmaceuticals by 14.1% during the 4th quarter. Wellington Management Group LLP now owns 461,402 shares of the biopharmaceutical company's stock valued at $268,693,000 after buying an additional 56,947 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Madrigal Pharmaceuticals by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 451,743 shares of the biopharmaceutical company's stock valued at $263,114,000 after acquiring an additional 5,510 shares in the last quarter. Invesco Ltd. increased its holdings in shares of Madrigal Pharmaceuticals by 21.9% during the fourth quarter. Invesco Ltd. now owns 365,314 shares of the biopharmaceutical company's stock valued at $212,737,000 after acquiring an additional 65,749 shares in the last quarter. Bank of America Corp DE raised its position in shares of Madrigal Pharmaceuticals by 12.7% in the 2nd quarter. Bank of America Corp DE now owns 277,221 shares of the biopharmaceutical company's stock worth $83,898,000 after purchasing an additional 31,260 shares during the last quarter. Finally, Polar Capital Holdings Plc boosted its stake in Madrigal Pharmaceuticals by 1.9% in the 4th quarter. Polar Capital Holdings Plc now owns 270,151 shares of the biopharmaceutical company's stock worth $157,320,000 after purchasing an additional 4,997 shares in the last quarter. 98.50% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Madrigal Pharmaceuticals

In other news, 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 transaction of $2,928,730.08. Following the sale, the director directly owned 22,015 shares of the company's stock, valued at $11,347,411.60. This represents a 20.51% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David Soergel sold 1,042 shares of the 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 transaction, the insider owned 10,033 shares of the company's stock, valued at $4,973,759.42. This represents a 9.41% 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 90 days, insiders have sold 7,568 shares of company stock valued at $3,880,711. Company insiders own 17.60% of the company's stock.

Madrigal Pharmaceuticals Price Performance

Shares of Madrigal Pharmaceuticals stock opened at $544.51 on Friday. Madrigal Pharmaceuticals, Inc. has a 52 week low of $286.44 and a 52 week high of $615.00. The company has a quick ratio of 3.16, a current ratio of 3.50 and a debt-to-equity ratio of 0.63. The company has a market capitalization of $12.56 billion, a price-to-earnings ratio of -42.54 and a beta of -1.05. The stock's 50-day simple moving average is $516.10 and its 200-day simple moving average is $500.31.

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

Analyst Ratings Changes

Several analysts recently commented on the stock. HC Wainwright reissued a "buy" rating and set a $620.00 price objective on shares of Madrigal Pharmaceuticals in a research report on Wednesday, May 6th. Piper Sandler reiterated an "overweight" rating on shares of Madrigal Pharmaceuticals in a research note on Wednesday, June 24th. Evercore set a $649.00 price target on shares of Madrigal Pharmaceuticals in a report on Thursday, May 7th. Canaccord Genuity Group reduced their price target 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, Citigroup restated an "outperform" rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Madrigal Pharmaceuticals currently has a consensus rating of "Moderate Buy" and a consensus price target of $687.93.

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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