Entropy Technologies LP Increases Holdings in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• Entropy Technologies LP boosted its stake in Madrigal Pharmaceuticals by 87.5% in the fourth quarter, ending with 6,942 shares valued at about $4.0 million.
• Wall Street remains broadly positive on the stock, with analysts giving Madrigal a Moderate Buy consensus rating and an average price target of $687.93.
• Madrigal reported strong quarterly revenue growth of $311.34 million, beating estimates, while insider selling has continued, including recent sales by David Soergel and Richard S. Levy.

Entropy Technologies LP grew its holdings in shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) by 87.5% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 6,942 shares of the biopharmaceutical company's stock after buying an additional 3,240 shares during the period. Entropy Technologies LP's holdings in Madrigal Pharmaceuticals were worth $4,043,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also made changes to their positions in the company. Flagship Harbor Advisors LLC purchased a new stake in shares of Madrigal Pharmaceuticals in the 4th quarter valued at about $29,000. Aventura Private Wealth LLC purchased a new stake in shares of Madrigal Pharmaceuticals in the 4th quarter valued at about $36,000. Aster Capital Management DIFC Ltd purchased a new stake in shares of Madrigal Pharmaceuticals in the 3rd quarter valued at about $39,000. Eastern Bank lifted its holdings in shares of Madrigal Pharmaceuticals by 32.3% in the 4th quarter. Eastern Bank now owns 86 shares of the biopharmaceutical company's stock valued at $50,000 after purchasing an additional 21 shares during the last quarter. Finally, Quarry LP purchased a new stake in shares of Madrigal Pharmaceuticals in the 3rd quarter valued at about $39,000. 98.50% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the company. HC Wainwright reissued a "buy" rating and issued a $620.00 target price on shares of Madrigal Pharmaceuticals in a report on Wednesday, May 6th. Evercore set a $649.00 price objective on Madrigal Pharmaceuticals in a research note on Thursday, May 7th. Zacks Research raised Madrigal Pharmaceuticals from a "strong sell" rating to a "hold" rating in a research note on Friday, February 20th. Canaccord Genuity Group reduced their price objective on Madrigal Pharmaceuticals from $587.00 to $578.00 and set a "buy" rating for the company in a research note on Thursday, May 7th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Madrigal Pharmaceuticals in a research note on Monday, June 1st. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Madrigal Pharmaceuticals has a consensus rating of "Moderate Buy" and a consensus price target of $687.93.

Madrigal Pharmaceuticals Stock Performance

NASDAQ MDGL opened at $480.77 on Monday. The company has a current ratio of 3.50, a quick ratio of 3.16 and a debt-to-equity ratio of 0.63. The business's 50 day moving average is $512.55 and its two-hundred day moving average is $510.68. Madrigal Pharmaceuticals, Inc. has a 12-month low of $275.00 and a 12-month high of $615.00. The stock has a market capitalization of $11.09 billion, a price-to-earnings ratio of -37.56 and a beta of -1.07.

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 (EPS) for the quarter, topping the consensus estimate of ($3.61) by $0.36. Madrigal Pharmaceuticals had a negative return on equity of 50.15% and a negative net margin of 27.32%.The company had revenue of $311.34 million for the quarter, compared to analysts' expectations of $301.05 million. During the same quarter in the previous year, the firm posted ($3.32) EPS. The firm's quarterly revenue was up 126.8% on a year-over-year basis. Research analysts expect that Madrigal Pharmaceuticals, Inc. will post -7.3 EPS for the current year.

Insider Buying and Selling

In related news, insider David Soergel sold 1,042 shares of the company's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $495.74, for a total value of $516,561.08. Following 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 legal filing with the SEC, which is available at this hyperlink. 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 sale, the director owned 22,015 shares in the company, valued at approximately $11,347,411.60. This represents a 20.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 7,568 shares of company stock worth $3,880,711. Insiders own 17.60% of the company's stock.

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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