Hsbc Holdings PLC Grows Stake in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• HSBC Holdings sharply increased its Madrigal Pharmaceuticals stake by 1,738.3% in the second quarter, bringing its holdings to 20,240 shares valued at approximately $10.9 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—better than analysts’ expected loss of $2.68. Analysts project a full-year loss of $7.03 per share.
• Analysts maintain a generally positive outlook, with 15 Buy ratings and a consensus “Moderate Buy” rating; the average price target is $699.64 versus the stock’s recent price of $546.66.

Hsbc Holdings PLC boosted its stake in Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) by 1,738.3% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 20,240 shares of the biopharmaceutical company's stock after acquiring an additional 19,139 shares during the period. Hsbc Holdings PLC owned about 0.09% of Madrigal Pharmaceuticals worth $10,868,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Wellington Management Group LLP increased its holdings in shares of Madrigal Pharmaceuticals by 18.8% in the 2nd quarter. Wellington Management Group LLP now owns 825,714 shares of the biopharmaceutical company's stock valued at $443,367,000 after acquiring an additional 130,756 shares during the period. Beacon Pointe Advisors LLC purchased a new position in shares of Madrigal Pharmaceuticals in the 2nd quarter valued at approximately $519,000. Palo Alto Investors LP acquired a new position in shares of Madrigal Pharmaceuticals in the second quarter valued at approximately $959,530. Centaurus Financial Inc. purchased a new stake in shares of Madrigal Pharmaceuticals during the second quarter worth approximately $387,000. Finally, Jefferies Financial Group Inc. purchased a new stake in shares of Madrigal Pharmaceuticals during the second quarter worth approximately $340,000. Hedge funds and other institutional investors own 98.50% of the company's stock.

Madrigal Pharmaceuticals Price Performance

Shares of NASDAQ MDGL opened at $546.66 on Thursday. The firm has a market capitalization of $12.63 billion, a P/E ratio of -42.41 and a beta of -0.98. Madrigal Pharmaceuticals, Inc. has a one year low of $393.61 and a one year high of $615.00. The company's fifty day moving average is $530.77 and its two-hundred day moving average is $506.75. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.94 and a current ratio of 3.20.

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

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Canaccord Genuity Group lifted their price objective on shares of Madrigal Pharmaceuticals from $578.00 to $587.00 and gave the company a "buy" rating in a research report on Wednesday, July 29th. Wells Fargo & Company initiated coverage on shares of Madrigal Pharmaceuticals in a research note on Monday, July 27th. They issued an "overweight" rating and a $685.00 target price for the company. Citigroup reaffirmed an "outperform" rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 17th. Bank of America dropped their price target on shares of Madrigal Pharmaceuticals from $550.00 to $542.00 and set a "neutral" rating on the stock in a research note on Thursday, June 11th. Finally, Barclays reduced their price objective on shares of Madrigal Pharmaceuticals from $964.00 to $962.00 and set an "overweight" rating for the company in a research report on Monday, August 3rd. Fifteen research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $699.64.

Insider Activity

In other Madrigal Pharmaceuticals news, General Counsel Shannon 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 in the company, valued at approximately $5,908,765.78. This represents a 5.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 17.60% of the stock is owned by corporate insiders.

Madrigal Pharmaceuticals 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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