Tao Capital Management LP Has $37.36 Million Stake in Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)

Key Points

• Tao Capital Management LP reduced its stake in Madrigal Pharmaceuticals by 13.6% in the first quarter, now holding 112,785 shares worth approximately $37.36 million, which makes it the company's largest position in their portfolio.
• Madrigal Pharmaceuticals reported a significant quarterly revenue increase of 1357.5% year-over-year, amounting to $212.80 million, and beat analysts' EPS estimates.
• Analysts have given a consensus rating of "Moderate Buy" for the stock, with an average price target of $421.63, reflecting positive sentiment towards its future performance.

Tao Capital Management LP lessened its stake in Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) by 13.6% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 112,785 shares of the biopharmaceutical company's stock after selling 17,744 shares during the quarter. Madrigal Pharmaceuticals makes up about 32.2% of Tao Capital Management LP's holdings, making the stock its largest position. Tao Capital Management LP owned approximately 0.51% of Madrigal Pharmaceuticals worth $37,358,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. LPL Financial LLC increased its holdings in Madrigal Pharmaceuticals by 10.1% during the fourth quarter. LPL Financial LLC now owns 5,220 shares of the biopharmaceutical company's stock worth $1,611,000 after buying an additional 480 shares during the last quarter. Franklin Resources Inc. increased its stake in shares of Madrigal Pharmaceuticals by 340.1% in the fourth quarter. Franklin Resources Inc. now owns 6,087 shares of the biopharmaceutical company's stock worth $1,878,000 after purchasing an additional 4,704 shares in the last quarter. Wells Fargo & Company MN increased its stake in shares of Madrigal Pharmaceuticals by 19.1% in the fourth quarter. Wells Fargo & Company MN now owns 34,923 shares of the biopharmaceutical company's stock worth $10,776,000 after purchasing an additional 5,604 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in shares of Madrigal Pharmaceuticals by 2.3% in the fourth quarter. Envestnet Asset Management Inc. now owns 15,001 shares of the biopharmaceutical company's stock worth $4,629,000 after purchasing an additional 334 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its stake in shares of Madrigal Pharmaceuticals by 120.2% in the fourth quarter. Russell Investments Group Ltd. now owns 1,482 shares of the biopharmaceutical company's stock worth $457,000 after purchasing an additional 809 shares in the last quarter. Hedge funds and other institutional investors own 98.50% of the company's stock.

Insider Buying and Selling

In related news, Director Paul A. Friedman sold 26,176 shares of the stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $353.47, for a total value of $9,252,430.72. Following the completion of the transaction, the director directly owned 187,164 shares in the company, valued at $66,156,859.08. This trade represents a 12.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Rebecca Taub sold 26,444 shares of the stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $353.47, for a total transaction of $9,347,160.68. Following the completion of the transaction, the director owned 461,044 shares of the company's stock, valued at approximately $162,965,222.68. The trade was a 5.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 60,377 shares of company stock worth $21,316,969 in the last quarter. Company insiders own 21.50% of the company's stock.

Wall Street Analyst Weigh In

MDGL has been the subject of several recent research reports. Canaccord Genuity Group lifted their target price on shares of Madrigal Pharmaceuticals from $420.00 to $428.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. JMP Securities restated a "market outperform" rating and issued a $443.00 price objective on shares of Madrigal Pharmaceuticals in a research report on Thursday, April 24th. B. Riley restated a "buy" rating and issued a $460.00 price objective (up from $422.00) on shares of Madrigal Pharmaceuticals in a research report on Friday, May 2nd. Wall Street Zen raised Madrigal Pharmaceuticals from a "sell" rating to a "hold" rating in a research note on Monday, May 5th. Finally, UBS Group reissued a "buy" rating and set a $523.00 price objective (up previously from $458.00) on shares of Madrigal Pharmaceuticals in a research note on Tuesday. Two analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat, Madrigal Pharmaceuticals presently has an average rating of "Moderate Buy" and a consensus price target of $439.71.

Madrigal Pharmaceuticals Trading Up 1.9%

Shares of NASDAQ:MDGL traded up $6.70 on Tuesday, hitting $356.20. The company had a trading volume of 261,496 shares, compared to its average volume of 374,685. Madrigal Pharmaceuticals, Inc. has a 1 year low of $200.63 and a 1 year high of $377.46. The company has a quick ratio of 4.78, a current ratio of 5.11 and a debt-to-equity ratio of 0.17. The firm's 50-day simple moving average is $303.20 and its two-hundred day simple moving average is $312.98. The firm has a market capitalization of $7.91 billion, a price-to-earnings ratio of -27.72 and a beta of -1.02.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The biopharmaceutical company reported ($1.90) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($3.48) by $1.58. Madrigal Pharmaceuticals had a negative net margin of 54.68% and a negative return on equity of 38.38%. The company had revenue of $212.80 million during the quarter, compared to the consensus estimate of $158.94 million. During the same period in the prior year, the firm earned ($7.10) earnings per share. Madrigal Pharmaceuticals's revenue was up 1357.5% on a year-over-year basis. Equities analysts anticipate that Madrigal Pharmaceuticals, Inc. will post -23.47 earnings per share for the current fiscal year.

Madrigal Pharmaceuticals Company Profile

Madrigal Pharmaceuticals, Inc, a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment of non-alcoholic steatohepatitis (NASH) in the United States. Its lead product candidate is resmetirom, a liver-directed thyroid hormone receptor beta agonist, which is in Phase 3 clinical trials for treating NASH.