Hsbc Holdings PLC Makes New Investment in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• HSBC Holdings purchased 20,240 shares of Madrigal Pharmaceuticals worth approximately $10.9 million, giving it a 0.09% stake. Institutional investors collectively own 98.5% of the company.
• Analyst sentiment remains positive overall: 15 analysts rate MDGL a Buy, two rate it Hold and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $699.64.
• Madrigal reported quarterly revenue of $364.25 million, up 71.2% year over year, and an adjusted loss of $1.99 per share that beat estimates. Shares opened at $533.76, within a 12-month range of $393.61 to $615.00.

Hsbc Holdings PLC bought a new stake in shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 20,240 shares of the biopharmaceutical company's stock, valued at approximately $10,868,000. Hsbc Holdings PLC owned 0.09% of Madrigal Pharmaceuticals as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also modified their holdings of MDGL. Janus Henderson Group PLC increased its holdings in Madrigal Pharmaceuticals by 27.4% during the first quarter. Janus Henderson Group PLC now owns 2,018,647 shares of the biopharmaceutical company's stock valued at $1,051,727,000 after buying an additional 433,804 shares during the period. BlackRock Inc. purchased a new stake in Madrigal Pharmaceuticals during the second quarter worth $644,753,000. Wellington Management Group LLP lifted its holdings in Madrigal Pharmaceuticals by 14.1% during the fourth quarter. Wellington Management Group LLP now owns 461,402 shares of the biopharmaceutical company's stock worth $268,693,000 after buying an additional 56,947 shares during the period. Geode Capital Management LLC lifted its holdings in Madrigal Pharmaceuticals by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 451,743 shares of the biopharmaceutical company's stock worth $263,114,000 after buying an additional 5,510 shares during the period. Finally, Invesco Ltd. boosted its position in Madrigal Pharmaceuticals by 21.9% during the 4th 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. Institutional investors own 98.50% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently commented on MDGL shares. Weiss Ratings reissued a "sell (d-)" rating on shares of Madrigal Pharmaceuticals in a research report on Friday, July 17th. Bank of America dropped their price objective on Madrigal Pharmaceuticals from $550.00 to $542.00 and set a "neutral" rating on the stock in a research report on Thursday, June 11th. UBS Group reiterated a "buy" rating on shares of Madrigal Pharmaceuticals in a research note on Friday, July 31st. Citigroup reiterated an "outperform" rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 17th. Finally, Barclays decreased their price target 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 issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Madrigal Pharmaceuticals has an average rating of "Moderate Buy" and a consensus target price of $699.64.

Insider Activity

In other news, General Counsel Shannon T. Kelley sold 664 shares of the business's stock in a transaction dated 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. The trade was a 5.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David Soergel sold 1,042 shares of the company's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $495.74, for a total transaction of $516,561.08. Following the transaction, the insider owned 10,033 shares in the company, valued at approximately $4,973,759.42. This trade represents a 9.41% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 17.60% of the company's stock.

Madrigal Pharmaceuticals Stock Performance

Shares of MDGL stock opened at $533.76 on Friday. The business's fifty day simple moving average is $526.96 and its 200-day simple moving average is $502.76. The company has a market cap of $12.33 billion, a PE ratio of -41.41 and a beta of -1.01. The company has a current ratio of 3.20, a quick ratio of 2.94 and a debt-to-equity ratio of 0.65. Madrigal Pharmaceuticals, Inc. has a 12-month low of $393.61 and a 12-month high of $615.00.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The biopharmaceutical company reported ($1.99) EPS for the quarter, beating the consensus estimate of ($2.68) by $0.69. The firm had revenue of $364.25 million during 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 business's revenue for the quarter was up 71.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($1.90) EPS. Analysts expect that Madrigal Pharmaceuticals, Inc. will post -7.03 earnings per share for the current fiscal 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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