MPM Bioimpact LLC Makes New Investment in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• MPM Bioimpact LLC has made a significant investment in Madrigal Pharmaceuticals, acquiring 100,415 shares valued at approximately $33.26 million, which makes it the second-largest holding for the firm.
• Insider transactions included CEO William John Sibold selling 7,616 shares, reducing his ownership by 6.49%, while a director increased their stake by acquiring 68,618 shares.
• Madrigal's stock has garnered positive ratings from analysts, with a consensus target price of $459.25 and multiple firms issuing buy ratings, indicating strong confidence in the stock's potential growth.

MPM Bioimpact LLC purchased a new position in Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 100,415 shares of the biopharmaceutical company's stock, valued at approximately $33,260,000. Madrigal Pharmaceuticals accounts for 5.7% of MPM Bioimpact LLC's investment portfolio, making the stock its 2nd biggest position. MPM Bioimpact LLC owned approximately 0.45% of Madrigal Pharmaceuticals as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently modified their holdings of the company. Woodline Partners LP raised its stake in Madrigal Pharmaceuticals by 110.2% during the fourth quarter. Woodline Partners LP now owns 309,117 shares of the biopharmaceutical company's stock valued at $95,384,000 after purchasing an additional 162,027 shares in the last quarter. Lord Abbett & CO. LLC grew its holdings in shares of Madrigal Pharmaceuticals by 141.3% in the first quarter. Lord Abbett & CO. LLC now owns 118,024 shares of the biopharmaceutical company's stock worth $39,093,000 after purchasing an additional 69,107 shares during the last quarter. Vestal Point Capital LP grew its holdings in Madrigal Pharmaceuticals by 216.7% during the 4th quarter. Vestal Point Capital LP now owns 95,000 shares of the biopharmaceutical company's stock worth $29,314,000 after acquiring an additional 65,000 shares in the last quarter. Federated Hermes Inc. bought a new position in Madrigal Pharmaceuticals during the 1st quarter worth about $19,220,000. Finally, Paulson & CO. Inc. grew its holdings in Madrigal Pharmaceuticals by 2.8% during the 1st quarter. Paulson & CO. Inc. now owns 2,099,523 shares of the biopharmaceutical company's stock worth $695,425,000 after acquiring an additional 57,523 shares in the last quarter. Hedge funds and other institutional investors own 98.50% of the company's stock.

Analysts Set New Price Targets

MDGL has been the subject of several analyst reports. UBS Group reiterated a "buy" rating and set a $523.00 price objective (up previously from $458.00) on shares of Madrigal Pharmaceuticals in a report on Tuesday, August 12th. JMP Securities boosted their target price on shares of Madrigal Pharmaceuticals from $483.00 to $485.00 and gave the company a "market outperform" rating in a research report on Wednesday, August 20th. Cowen reaffirmed a "buy" rating on shares of Madrigal Pharmaceuticals in a research note on Tuesday, August 26th. HC Wainwright began coverage on shares of Madrigal Pharmaceuticals in a research note on Thursday. They set a "buy" rating and a $500.00 price objective on the stock. Finally, Canaccord Genuity Group lifted their price target on shares of Madrigal Pharmaceuticals from $420.00 to $428.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $471.13.

Madrigal Pharmaceuticals Stock Up 0.4%

Shares of Madrigal Pharmaceuticals stock traded up $1.68 on Friday, reaching $432.89. 281,201 shares of the company were exchanged, compared to its average volume of 394,410. Madrigal Pharmaceuticals, Inc. has a 1-year low of $200.63 and a 1-year high of $443.00. The company has a market cap of $9.61 billion, a P/E ratio of -33.69 and a beta of -1.02. The company has a debt-to-equity ratio of 0.17, a current ratio of 5.11 and a quick ratio of 4.78. The stock's 50 day moving average price is $350.02 and its 200-day moving average price is $323.18.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The biopharmaceutical company reported ($1.90) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($3.48) by $1.58. Madrigal Pharmaceuticals had a negative return on equity of 38.38% and a negative net margin of 54.68%.The firm 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 company posted ($7.10) earnings per share. The firm's quarterly revenue was up 1357.5% compared to the same quarter last year. As a group, equities analysts forecast that Madrigal Pharmaceuticals, Inc. will post -23.47 EPS for the current year.

Insider Buying and Selling

In related news, General Counsel Shannon T. Kelley sold 1,304 shares of the stock in a transaction on Monday, August 18th. The stock was sold at an average price of $367.81, for a total transaction of $479,624.24. Following the sale, the general counsel owned 9,173 shares of the company's stock, valued at $3,373,921.13. This trade represents a 12.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO William John Sibold sold 7,616 shares of the stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $400.18, for a total value of $3,047,770.88. Following the sale, the chief executive officer directly owned 109,753 shares in the company, valued at approximately $43,920,955.54. The trade was a 6.49% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have bought 165,683 shares of company stock worth $61,921,142 and have sold 301,740 shares worth $109,461,331. 21.50% of the stock is owned by company insiders.

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.