Penn Capital Management Company LLC Invests $1.72 Million in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• Penn Capital Management initiated a new position in Madrigal Pharmaceuticals, buying 2,902 shares worth about $1.72 million in the fourth quarter.
• Institutional interest in MDGL remains high, with several hedge funds adding to or starting positions; overall, 98.5% of the stock is owned by institutional investors.
• Madrigal reported better-than-expected quarterly results, with revenue of $311.34 million and EPS of -$3.25 beating estimates, while analysts currently rate the stock Moderate Buy with a consensus target price of $687.

Penn Capital Management Company LLC bought a new position in shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm bought 2,902 shares of the biopharmaceutical company's stock, valued at approximately $1,719,000.

Several other hedge funds also recently made changes to their positions in MDGL. Wellington Management Group LLP boosted its position in shares of Madrigal Pharmaceuticals by 5,381.2% during the 3rd quarter. Wellington Management Group LLP now owns 404,455 shares of the biopharmaceutical company's stock worth $185,507,000 after acquiring an additional 397,076 shares in the last quarter. Baker BROS. Advisors LP boosted its position in shares of Madrigal Pharmaceuticals by 8.4% during the 3rd quarter. Baker BROS. Advisors LP now owns 2,141,701 shares of the biopharmaceutical company's stock worth $982,313,000 after acquiring an additional 165,683 shares in the last quarter. Alkeon Capital Management LLC acquired a new stake in shares of Madrigal Pharmaceuticals during the 3rd quarter worth approximately $55,039,000. Invesco Ltd. boosted its position in shares of Madrigal Pharmaceuticals by 49.5% during the 3rd quarter. Invesco Ltd. now owns 299,565 shares of the biopharmaceutical company's stock worth $137,398,000 after acquiring an additional 99,209 shares in the last quarter. Finally, BNP Paribas Financial Markets boosted its position in shares of Madrigal Pharmaceuticals by 1,886.1% during the 2nd quarter. BNP Paribas Financial Markets now owns 69,037 shares of the biopharmaceutical company's stock worth $20,893,000 after acquiring an additional 65,561 shares in the last quarter. 98.50% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several analysts recently issued reports on MDGL shares. Barclays started coverage on shares of Madrigal Pharmaceuticals in a research report on Tuesday, January 27th. They set an "overweight" rating and a $964.00 price target on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Madrigal Pharmaceuticals in a research report on Tuesday, April 21st. Evercore set a $649.00 price target on shares of Madrigal Pharmaceuticals in a research report on Thursday, May 7th. HC Wainwright reiterated a "buy" rating and set a $620.00 price target on shares of Madrigal Pharmaceuticals in a research report on Wednesday, May 6th. Finally, Truist Financial raised their target price on shares of Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the company a "buy" rating in a research report on Wednesday, May 13th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Madrigal Pharmaceuticals currently has an average rating of "Moderate Buy" and a consensus target price of $687.00.

Madrigal Pharmaceuticals Stock Performance

Shares of Madrigal Pharmaceuticals stock opened at $524.28 on Wednesday. Madrigal Pharmaceuticals, Inc. has a fifty-two week low of $265.00 and a fifty-two week high of $615.00. The company has a debt-to-equity ratio of 0.63, a current ratio of 3.50 and a quick ratio of 3.16. The firm has a market capitalization of $12.09 billion, a P/E ratio of -40.96 and a beta of -1.04. The company's 50 day moving average price is $509.56 and its two-hundred day moving average price is $515.06.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last issued its 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. Madrigal Pharmaceuticals had a negative net margin of 27.32% and a negative return on equity of 50.15%. The firm had revenue of $311.34 million for the quarter, compared to analyst estimates of $301.05 million. During the same quarter last year, the business posted ($3.32) earnings per share. The company's quarterly revenue was up 126.8% on a year-over-year basis. On average, equities analysts forecast that Madrigal Pharmaceuticals, Inc. will post -6.49 earnings per share for the current fiscal year.

Insider Transactions at Madrigal Pharmaceuticals

In other news, General Counsel Shannon T. Kelley sold 360 shares of Madrigal Pharmaceuticals stock in a transaction on Friday, March 6th. The shares were sold at an average price of $431.94, for a total transaction of $155,498.40. Following the transaction, the general counsel owned 12,138 shares in the company, valued at approximately $5,242,887.72. The trade was a 2.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Richard S. Levy sold 5,682 shares of Madrigal Pharmaceuticals stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $515.44, for a total transaction of $2,928,730.08. Following the transaction, the director owned 22,015 shares in the company, valued at approximately $11,347,411.60. This trade represents 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. Over the last three months, insiders have sold 12,624 shares of company stock valued at $5,990,403. Corporate insiders own 17.60% of the company's stock.

Madrigal Pharmaceuticals 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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