Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Madrigal Pharmaceuticals, Inc. has received a consensus recommendation of "Moderate Buy" from eleven brokerages, with an average target price of $495.88.
• The company's recent earnings report showed a loss of ($1.90) EPS, but revenue rose by 1357.5% year-over-year to $212.80 million, surpassing analyst estimates.
• Insider activity revealed significant share sales, including a 79.20% decrease in ownership for a director, indicating potential concerns among company executives.

Shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the eleven brokerages that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and nine have given a buy recommendation to the company. The average 12 month target price among analysts that have covered the stock in the last year is $495.8750.

Several research analysts have recently weighed in on MDGL shares. JMP Securities upped their price target on shares of Madrigal Pharmaceuticals from $483.00 to $485.00 and gave the company a "market outperform" rating in a report on Wednesday, August 20th. TD Cowen upped their target price on shares of Madrigal Pharmaceuticals from $390.00 to $554.00 and gave the stock a "buy" rating in a research note on Tuesday, August 26th. HC Wainwright started coverage on shares of Madrigal Pharmaceuticals in a research note on Thursday, September 4th. They issued a "buy" rating and a $500.00 target price for the company. UBS Group reaffirmed a "buy" rating and set a $523.00 price objective (up from $458.00) on shares of Madrigal Pharmaceuticals in a research report on Tuesday, August 12th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Madrigal Pharmaceuticals in a research report on Wednesday.

Madrigal Pharmaceuticals Price Performance

Madrigal Pharmaceuticals stock opened at $436.95 on Thursday. The firm has a market capitalization of $9.70 billion, a P/E ratio of -34.00 and a beta of -1.02. Madrigal Pharmaceuticals has a 1 year low of $200.63 and a 1 year high of $463.63. The business has a 50-day moving average of $409.43 and a 200-day moving average of $339.54. The company has a current ratio of 5.11, a quick ratio of 4.78 and a debt-to-equity ratio of 0.17.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last posted its earnings results on Tuesday, August 5th. The biopharmaceutical company reported ($1.90) earnings per share (EPS) for the quarter, topping the consensus estimate 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 company had revenue of $212.80 million during the quarter, compared to analyst estimates of $158.94 million. During the same period in the previous year, the company earned ($7.10) EPS. The company's revenue for the quarter was up 1357.5% compared to the same quarter last year. On average, equities analysts anticipate that Madrigal Pharmaceuticals will post -23.47 EPS for the current year.

Insider Activity at Madrigal Pharmaceuticals

In related news, Director Kenneth Bate sold 10,000 shares of the firm's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $365.20, for a total value of $3,652,000.00. Following the completion of the sale, the director directly owned 2,627 shares in the company, valued at approximately $959,380.40. This trade represents a 79.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO William John Sibold sold 7,616 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief executive officer directly owned 109,753 shares of the company's stock, valued at approximately $43,920,955.54. The trade was a 6.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders acquired 165,683 shares of company stock worth $61,921,142 and sold 309,019 shares worth $112,705,072. Corporate insiders own 21.50% of the company's stock.

Institutional Trading of Madrigal Pharmaceuticals

A number of hedge funds have recently modified their holdings of MDGL. VSM Wealth Advisory LLC acquired a new stake in Madrigal Pharmaceuticals during the first quarter worth approximately $25,000. Accent Capital Management LLC acquired a new stake in Madrigal Pharmaceuticals during the 1st quarter worth approximately $25,000. AlphaQuest LLC lifted its holdings in Madrigal Pharmaceuticals by 412.5% during the 2nd quarter. AlphaQuest LLC now owns 82 shares of the biopharmaceutical company's stock worth $25,000 after purchasing an additional 66 shares during the last quarter. GAMMA Investing LLC lifted its holdings in Madrigal Pharmaceuticals by 114.3% during the 3rd quarter. GAMMA Investing LLC now owns 90 shares of the biopharmaceutical company's stock worth $41,000 after purchasing an additional 48 shares during the last quarter. Finally, Summit Securities Group LLC acquired a new stake in Madrigal Pharmaceuticals during the 1st quarter worth approximately $33,000. Institutional investors and hedge funds own 98.50% of the company's stock.

About Madrigal Pharmaceuticals

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.

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