Paulson & CO. Inc. Reduces Stake in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• Paulson & Co. reduced its Madrigal Pharmaceuticals stake by 18.5% in the first quarter, selling 315,334 shares. The fund still owned 1.39 million shares, worth approximately $728.8 million and representing 23.4% of its portfolio.
• Madrigal reported quarterly revenue of $311.3 million, up 126.8% year over year, and an adjusted loss of $3.25 per share that beat analyst expectations. Analysts collectively maintain a “Moderate Buy” rating with an average price target of $687.93.
• Institutional investors own 98.5% of MDGL, while insiders have sold 7,568 shares worth about $3.9 million over the past three months. The stock recently traded at $544.51, within its 12-month range of $286.44 to $615.00.

Paulson & CO. Inc. lessened its stake in shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) by 18.5% in the first quarter, according to the company in its most recent filing with the SEC. The fund owned 1,392,188 shares of the biopharmaceutical company's stock after selling 315,334 shares during the quarter. Madrigal Pharmaceuticals comprises about 23.4% of Paulson & CO. Inc.'s portfolio, making the stock its 2nd largest holding. Paulson & CO. Inc. owned approximately 6.04% of Madrigal Pharmaceuticals worth $728,769,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also modified their holdings of the company. Eastern Bank raised its holdings in 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 acquiring an additional 21 shares during the period. Centaurus Financial Inc. lifted its position in Madrigal Pharmaceuticals by 5.0% during the third quarter. Centaurus Financial Inc. now owns 709 shares of the biopharmaceutical company's stock worth $325,000 after acquiring an additional 34 shares during the last quarter. Farther Finance Advisors LLC boosted its holdings in shares of Madrigal Pharmaceuticals by 34.6% during the fourth quarter. Farther Finance Advisors LLC now owns 140 shares of the biopharmaceutical company's stock worth $82,000 after acquiring an additional 36 shares during the period. Accent Capital Management LLC boosted its holdings in shares of Madrigal Pharmaceuticals by 64.9% during the fourth quarter. Accent Capital Management LLC now owns 94 shares of the biopharmaceutical company's stock worth $55,000 after acquiring an additional 37 shares during the period. Finally, Swiss Life Asset Management Ltd grew its position in shares of Madrigal Pharmaceuticals by 6.8% in the fourth quarter. Swiss Life Asset Management Ltd now owns 690 shares of the biopharmaceutical company's stock valued at $402,000 after purchasing an additional 44 shares during the last quarter. Institutional investors own 98.50% of the company's stock.

Insider Buying and Selling

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 transaction, the insider owned 10,033 shares in the company, valued at $4,973,759.42. This trade represents a 9.41% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Richard S. Levy sold 5,682 shares of Madrigal Pharmaceuticals stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $515.44, for a total value of $2,928,730.08. Following the completion of the transaction, the director directly owned 22,015 shares of the company's stock, valued at $11,347,411.60. This represents a 20.51% decrease in their ownership of the stock. 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 worth $3,880,711 in the last three months. 17.60% of the stock is currently owned by company insiders.

Madrigal Pharmaceuticals Stock Performance

Shares of NASDAQ:MDGL opened at $544.51 on Monday. The company's 50 day moving average price is $516.10 and its two-hundred day moving average price is $499.69. Madrigal Pharmaceuticals, Inc. has a 12-month low of $286.44 and a 12-month high of $615.00. The firm has a market cap of $12.56 billion, a PE ratio of -42.54 and a beta of -1.05. The company has a quick ratio of 3.16, a current ratio of 3.50 and a debt-to-equity ratio of 0.63.

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, beating analysts' consensus estimates 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 net margin of 27.32% and a negative return on equity of 50.15%. The firm's quarterly revenue was up 126.8% on a year-over-year basis. During the same period in the previous year, the business earned ($3.32) earnings per share. Equities research analysts predict that Madrigal Pharmaceuticals, Inc. will post -7.45 earnings per share for the current year.

Analyst Ratings Changes

MDGL has been the topic of a number of recent research reports. Canaccord Genuity Group lowered their target price on Madrigal Pharmaceuticals from $587.00 to $578.00 and set a "buy" rating on the stock in a research note on Thursday, May 7th. Bank of America reduced their price target on Madrigal Pharmaceuticals from $550.00 to $542.00 and set a "neutral" rating for the company in a research note on Thursday, June 11th. Truist Financial upped their price objective on Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the company a "buy" rating in a report on Wednesday, May 13th. Citigroup reiterated an "outperform" rating on shares of Madrigal Pharmaceuticals in a research report on Friday, July 17th. Finally, HC Wainwright reissued a "buy" rating and set a $620.00 target price on shares of Madrigal Pharmaceuticals in a report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $687.93.

Madrigal Pharmaceuticals Company 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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