Madrigal Pharmaceuticals, Inc. $MDGL Shares Sold by Avoro Capital Advisors LLC

Key Points

• Avoro Capital Advisors trimmed its Madrigal Pharmaceuticals stake by 1.4% in the fourth quarter, but still held 1.81 million shares worth about $1.05 billion. The stock remains Avoro’s third-largest holding and makes up 10.1% of its portfolio.
• Madrigal reported stronger-than-expected quarterly results, posting a loss of $3.25 per share versus estimates for a $3.61 loss, while revenue rose 126.8% year over year to $311.34 million. Despite the revenue growth, the company remains unprofitable and analysts expect a loss for the full year.
• Analyst sentiment is mostly positive, with a consensus rating of “Moderate Buy” and an average price target of $687.93. Recent insider selling has also occurred, including transactions by an executive and a director under pre-arranged trading plans.

Avoro Capital Advisors LLC reduced its holdings in Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) by 1.4% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,807,500 shares of the biopharmaceutical company's stock after selling 25,500 shares during the quarter. Madrigal Pharmaceuticals comprises 10.1% of Avoro Capital Advisors LLC's investment portfolio, making the stock its 3rd biggest holding. Avoro Capital Advisors LLC owned 7.88% of Madrigal Pharmaceuticals worth $1,052,580,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of the business. 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 buying an additional 21 shares during the period. Centaurus Financial Inc. lifted its holdings in shares of Madrigal Pharmaceuticals by 5.0% in the 3rd quarter. Centaurus Financial Inc. now owns 709 shares of the biopharmaceutical company's stock valued at $325,000 after buying an additional 34 shares during the period. Farther Finance Advisors LLC lifted its holdings in shares of Madrigal Pharmaceuticals by 34.6% in the 4th quarter. Farther Finance Advisors LLC now owns 140 shares of the biopharmaceutical company's stock valued at $82,000 after buying an additional 36 shares during the period. Accent Capital Management LLC lifted its holdings in shares of Madrigal Pharmaceuticals by 64.9% in the 4th quarter. Accent Capital Management LLC now owns 94 shares of the biopharmaceutical company's stock valued at $55,000 after buying an additional 37 shares during the period. Finally, Swiss Life Asset Management Ltd lifted its holdings in shares of Madrigal Pharmaceuticals by 6.8% in the 4th quarter. Swiss Life Asset Management Ltd now owns 690 shares of the biopharmaceutical company's stock valued at $402,000 after buying an additional 44 shares during the period. 98.50% of the stock is owned by institutional investors and hedge funds.

Madrigal Pharmaceuticals Stock Performance

NASDAQ MDGL opened at $501.19 on Wednesday. Madrigal Pharmaceuticals, Inc. has a 1-year low of $275.00 and a 1-year high of $615.00. The company has a market capitalization of $11.56 billion, a P/E ratio of -39.16 and a beta of -1.07. The business has a 50 day moving average price of $510.69 and a 200 day moving average price of $509.33. 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 quarterly earnings results on Wednesday, May 6th. The biopharmaceutical company reported ($3.25) earnings per share for the quarter, topping the consensus estimate of ($3.61) by $0.36. The company had revenue of $311.34 million during the quarter, compared to the consensus estimate of $301.05 million. Madrigal Pharmaceuticals had a negative return on equity of 50.15% and a negative net margin of 27.32%.Madrigal Pharmaceuticals's revenue was up 126.8% compared to the same quarter last year. During the same quarter last year, the business posted ($3.32) earnings per share. Sell-side analysts expect that Madrigal Pharmaceuticals, Inc. will post -7.3 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts have recently commented on MDGL shares. Weiss Ratings reissued a "sell (d-)" rating on shares of Madrigal Pharmaceuticals in a report on Tuesday, April 21st. Citigroup reaffirmed a "market outperform" rating on shares of Madrigal Pharmaceuticals in a research note on Monday, June 1st. Truist Financial raised their price objective on Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the company a "buy" rating in a research note on Wednesday, May 13th. Zacks Research raised Madrigal Pharmaceuticals from a "strong sell" rating to a "hold" rating in a research note on Friday, February 20th. Finally, Canaccord Genuity Group dropped 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. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $687.93.

Insider Buying and Selling at Madrigal Pharmaceuticals

In other Madrigal Pharmaceuticals news, insider David Soergel sold 1,042 shares of the firm's stock in a transaction 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 completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible 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 firm's stock in a transaction 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 transaction, the director directly owned 22,015 shares of the company's stock, valued at $11,347,411.60. The trade was a 20.51% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 7,568 shares of company stock valued at $3,880,711 in the last three months. 17.60% of the stock is currently owned by company insiders.

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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