Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts give Madrigal Pharmaceuticals a “Moderate Buy” consensus: 15 of 18 analysts rate the stock a buy, with an average 12-month price target of approximately $689.93 versus the referenced price near $514.
• Madrigal beat quarterly expectations, reporting an adjusted loss of $1.99 per share versus the expected $2.68 loss, while revenue rose 71.2% year over year to $364.25 million.
• Recent outlook revisions are mixed: HC Wainwright raised near-term earnings forecasts and maintained a buy rating, but lowered longer-term EPS estimates; insiders also sold 7,568 shares worth about $3.88 million over the past 90 days.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report) has been given an average recommendation of "Moderate Buy" by the eighteen ratings firms that are currently covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and fifteen have given a buy rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $689.9333.

MDGL has been the subject of a number of recent analyst reports. Truist Financial lifted their price target on Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the stock a "buy" rating in a report on Wednesday, May 13th. Piper Sandler reissued an "overweight" rating on shares of Madrigal Pharmaceuticals in a research report on Wednesday, June 24th. HC Wainwright reissued a "buy" rating on shares of Madrigal Pharmaceuticals in a research report on Friday, July 31st. Bank of America decreased their target price 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. Finally, Citigroup reaffirmed an "outperform" rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 17th.

Madrigal Pharmaceuticals Price Performance

Madrigal Pharmaceuticals stock opened at $514.12 on Thursday. The stock has a market cap of $11.88 billion, a P/E ratio of -39.89 and a beta of -1.01. The company has a fifty day simple moving average of $515.17 and a 200-day simple moving average of $499.03. Madrigal Pharmaceuticals has a 12-month low of $331.00 and a 12-month high of $615.00. The company has a current ratio of 3.20, a quick ratio of 2.94 and a debt-to-equity ratio of 0.65.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last issued its earnings results on Thursday, July 30th. The biopharmaceutical company reported ($1.99) EPS for the quarter, topping analysts' consensus estimates of ($2.68) by $0.69. The firm had revenue of $364.25 million during the quarter, compared to the consensus estimate of $352.13 million. Madrigal Pharmaceuticals had a negative net margin of 25.32% and a negative return on equity of 56.65%. The company's revenue was up 71.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($1.90) earnings per share. Equities analysts expect that Madrigal Pharmaceuticals will post -7.03 EPS for the current fiscal year.

Insider Activity at Madrigal Pharmaceuticals

In other news, Director Richard S. Levy sold 5,682 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $515.44, for a total transaction of $2,928,730.08. Following the completion of the sale, the director owned 22,015 shares in the company, valued at approximately $11,347,411.60. The trade was a 20.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David Soergel sold 1,042 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $495.74, for a total transaction of $516,561.08. Following the completion of the transaction, the insider directly owned 10,033 shares in the company, valued at $4,973,759.42. This trade represents a 9.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 7,568 shares of company stock valued at $3,880,711 in the last 90 days. Insiders own 17.60% of the company's stock.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

Several large investors have recently bought and sold shares of the stock. Hsbc Holdings PLC purchased a new stake in shares of Madrigal Pharmaceuticals in the 2nd quarter valued at about $309,000. Qube Research & Technologies Ltd purchased a new position in Madrigal Pharmaceuticals during the 2nd quarter worth approximately $1,163,000. Sei Investments Co. grew its stake in Madrigal Pharmaceuticals by 73.6% during the 2nd quarter. Sei Investments Co. now owns 17,542 shares of the biopharmaceutical company's stock worth $5,309,000 after buying an additional 7,438 shares during the last quarter. The Manufacturers Life Insurance Company increased its position in Madrigal Pharmaceuticals by 2.1% during the second quarter. The Manufacturers Life Insurance Company now owns 23,416 shares of the biopharmaceutical company's stock worth $7,087,000 after buying an additional 471 shares during the period. Finally, Bayesian Capital Management LP acquired a new position in Madrigal Pharmaceuticals during the second quarter worth approximately $418,000. Institutional investors and hedge funds own 98.50% of the company's stock.

Key Headlines Impacting Madrigal Pharmaceuticals

Here are the key news stories impacting Madrigal Pharmaceuticals this week:

• Positive Sentiment: Wolfe Research upgraded MDGL to “Outperform” from “Peer Perform” and set a $605 price target. The target implies approximately 17.7% potential upside from the referenced price, signaling increased confidence in Madrigal’s commercial outlook and supporting investor sentiment. Benzinga report
• Positive Sentiment: HC Wainwright raised its 2026 earnings forecasts. The firm now expects third-quarter 2026 EPS of $(0.10), versus $(1.05) previously, and fourth-quarter EPS of $0.85, versus $0.18. Its full-year 2026 forecast also improved to $(4.47) from $(7.07), while maintaining a “Buy” rating. These revisions suggest analysts expect Madrigal’s business to approach profitability faster than previously anticipated. MarketBeat analyst estimates
• Positive Sentiment: A recent analysis described the launch environment for semaglutide as manageable and Madrigal’s pipeline strategy as disciplined. The view that the company can navigate competition from semaglutide while concentrating resources on its core opportunities may be reassuring to investors evaluating long-term growth and execution risk. Seeking Alpha analysis
• Neutral Sentiment: HC Wainwright continues to project a transition from losses in 2026 to positive EPS beginning in 2027, but its estimates remain dependent on successful commercialization and future execution.
• Negative Sentiment: HC Wainwright reduced its longer-term EPS estimates. Forecasts were lowered for 2027 through 2030, including 2027 EPS to $8.32 from $11.78 and 2030 EPS to $77.98 from $93.68. Although the firm remains bullish, the cuts temper the valuation upside implied by the revised near-term estimates.

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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