Rheos Capital Works Inc. Reduces Stake in Madrigal Pharmaceuticals, Inc. $MDGL

Key Points

• Rheos Capital Works reduced its stake in Madrigal by 39.3%, selling 17,000 shares and ending the quarter with 26,215 shares worth about $15.27 million.
• Company insiders have been active sellers — including Director Rebecca Taub who sold 18,410 shares at $522.40 — with a total of 55,612 shares sold in the past three months; insiders now own 21.5% of the stock.
• Madrigal reported a Q4 EPS of -$2.57 (missing estimates) while revenue rose to $321.08M; the stock trades near $534, has a $12.25B market cap, and carries a consensus rating of Moderate Buy with a $685.31 target (Barclays $964).

Rheos Capital Works Inc. reduced its position in Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Free Report) by 39.3% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 26,215 shares of the biopharmaceutical company's stock after selling 17,000 shares during the period. Rheos Capital Works Inc. owned approximately 0.12% of Madrigal Pharmaceuticals worth $15,266,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also recently modified their holdings of the company. Hsbc Holdings PLC purchased a new position in Madrigal Pharmaceuticals during the second quarter valued at $309,000. Invesco Ltd. raised its holdings in Madrigal Pharmaceuticals by 50.7% during the second quarter. Invesco Ltd. now owns 200,356 shares of the biopharmaceutical company's stock valued at $60,636,000 after acquiring an additional 67,422 shares during the period. Marshall Wace LLP raised its holdings in Madrigal Pharmaceuticals by 1,868.5% during the second quarter. Marshall Wace LLP now owns 55,119 shares of the biopharmaceutical company's stock valued at $16,681,000 after acquiring an additional 52,319 shares during the period. Hood River Capital Management LLC raised its holdings in Madrigal Pharmaceuticals by 0.3% during the second quarter. Hood River Capital Management LLC now owns 244,738 shares of the biopharmaceutical company's stock valued at $74,068,000 after acquiring an additional 744 shares during the period. Finally, Qube Research & Technologies Ltd bought a new stake in Madrigal Pharmaceuticals during the second quarter valued at about $1,163,000. 98.50% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Director Rebecca Taub sold 18,410 shares of Madrigal Pharmaceuticals stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $522.40, for a total value of $9,617,384.00. Following the completion of the sale, the director owned 455,589 shares in the company, valued at approximately $237,999,693.60. This trade represents a 3.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Carole Huntsman sold 910 shares of the business's stock in a transaction on Monday, January 26th. The stock was sold at an average price of $493.78, for a total transaction of $449,339.80. Following the completion of the transaction, the insider owned 9,122 shares of the company's stock, valued at approximately $4,504,261.16. This trade represents a 9.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 55,612 shares of company stock worth $28,326,065. 21.50% of the stock is currently owned by insiders.

Madrigal Pharmaceuticals Trading Down 2.4%

MDGL opened at $533.88 on Tuesday. The firm has a market cap of $12.25 billion, a price-to-earnings ratio of -41.48 and a beta of -1.00. The company has a current ratio of 4.01, a quick ratio of 3.77 and a debt-to-equity ratio of 0.56. Madrigal Pharmaceuticals, Inc. has a 12 month low of $265.00 and a 12 month high of $615.00. The stock has a fifty day moving average price of $468.13 and a 200-day moving average price of $494.67.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last released its earnings results on Thursday, February 19th. The biopharmaceutical company reported ($2.57) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($2.61). The firm had revenue of $321.08 million during the quarter, compared to analyst estimates of $310.36 million. Madrigal Pharmaceuticals had a negative net margin of 30.08% and a negative return on equity of 43.76%. Madrigal Pharmaceuticals's revenue was up 210.8% on a year-over-year basis. During the same period in the previous year, the company earned ($2.71) earnings per share. As a group, equities research analysts anticipate that Madrigal Pharmaceuticals, Inc. will post -23.47 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on MDGL shares. Citizens Jmp raised their price target on Madrigal Pharmaceuticals from $527.00 to $745.00 and gave the company a "market outperform" rating in a report on Tuesday, January 20th. Wolfe Research set a $579.00 price target on Madrigal Pharmaceuticals in a report on Tuesday, January 6th. The Goldman Sachs Group reissued a "buy" rating and set a $571.00 price target on shares of Madrigal Pharmaceuticals in a report on Wednesday, January 14th. Citigroup reissued an "outperform" rating on shares of Madrigal Pharmaceuticals in a report on Tuesday, January 20th. Finally, Barclays began coverage on Madrigal Pharmaceuticals in a report on Tuesday, January 27th. They set an "overweight" rating and a $964.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Madrigal Pharmaceuticals currently has a consensus rating of "Moderate Buy" and a consensus target price of $685.31.

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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