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

Key Points

• "Moderate Buy" consensus from 17 analysts (12 buy, 1 strong buy, 3 hold, 1 sell) with an average 12‑month price target of $685.31.
• Madrigal reported a large EPS miss—($2.57) vs. $0.04 expected—but revenue of $321.1M beat estimates and rose 210.8% year‑over‑year; the company remains unprofitable with analysts forecasting about -$5.22 EPS for the year.
• Shares trade near $512 with a 52‑week range of $265–$615 and a $11.75B market cap, and insiders have recently sold stock (6,098 shares, ~$2.63M over three months) while retaining 21.5% ownership.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report) has received an average rating of "Moderate Buy" from the seventeen ratings firms that are presently covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, three have given a hold rating, twelve have issued a buy rating and one has issued a strong buy rating on the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $685.3077.

Several brokerages have commented on MDGL. Wolfe Research set a $579.00 price objective on shares of Madrigal Pharmaceuticals in a report on Tuesday, January 6th. The Goldman Sachs Group reiterated a "buy" rating and set a $571.00 target price on shares of Madrigal Pharmaceuticals in a report on Wednesday, January 14th. Citigroup reissued an "outperform" rating on shares of Madrigal Pharmaceuticals in a research report on Tuesday, January 20th. Zacks Research upgraded Madrigal Pharmaceuticals from a "strong sell" rating to a "hold" rating in a research note on Friday, February 20th. Finally, Bank of America dropped their price target on Madrigal Pharmaceuticals from $570.00 to $529.00 and set a "neutral" rating on the stock in a research report on Friday, February 20th.

Madrigal Pharmaceuticals Stock Performance

NASDAQ:MDGL opened at $512.39 on Monday. The company has a quick ratio of 3.77, a current ratio of 4.01 and a debt-to-equity ratio of 0.56. Madrigal Pharmaceuticals has a 52 week low of $265.00 and a 52 week high of $615.00. The firm has a market capitalization of $11.75 billion, a P/E ratio of -39.81 and a beta of -1.00. The company has a fifty day moving average of $479.28 and a 200 day moving average of $502.84.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last posted its earnings results on Thursday, February 19th. The biopharmaceutical company reported ($2.57) EPS for the quarter, missing the consensus estimate of $0.04 by ($2.61). Madrigal Pharmaceuticals had a negative return on equity of 43.76% and a negative net margin of 30.08%.The company had revenue of $321.08 million during the quarter, compared to analysts' expectations of $310.36 million. During the same period in the prior year, the business posted ($2.71) earnings per share. The company's revenue for the quarter was up 210.8% on a year-over-year basis. On average, research analysts predict that Madrigal Pharmaceuticals will post -5.22 earnings per share for the current year.

Insider Buying and Selling at Madrigal Pharmaceuticals

In other Madrigal Pharmaceuticals news, General Counsel Shannon T. Kelley sold 360 shares of the firm's stock in a transaction on Friday, March 6th. The stock was sold at an average price of $431.94, for a total transaction of $155,498.40. Following the completion of the transaction, the general counsel owned 12,138 shares of the company's stock, valued at approximately $5,242,887.72. This trade represents a 2.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO William John Sibold sold 1,663 shares of the company's stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $431.94, for a total transaction of $718,316.22. Following the completion of the sale, the chief executive officer directly owned 161,829 shares in the company, valued at $69,900,418.26. This represents a 1.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 6,098 shares of company stock valued at $2,626,254. Company insiders own 21.50% of the company's stock.

Institutional Investors Weigh In On Madrigal Pharmaceuticals

A number of hedge funds and other institutional investors have recently bought and sold shares of MDGL. Flagship Harbor Advisors LLC purchased a new position in shares of Madrigal Pharmaceuticals during the fourth quarter valued at approximately $29,000. Aventura Private Wealth LLC bought a new stake in shares of Madrigal Pharmaceuticals in the 4th quarter worth approximately $36,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Madrigal Pharmaceuticals in the 4th quarter worth approximately $39,000. Mather Group LLC. bought a new position in Madrigal Pharmaceuticals during the 3rd quarter valued at approximately $33,000. Finally, Global Retirement Partners LLC increased its position in Madrigal Pharmaceuticals by 221.7% during the 3rd quarter. Global Retirement Partners LLC now owns 74 shares of the biopharmaceutical company's stock valued at $34,000 after buying an additional 51 shares in the last quarter. Hedge funds and other institutional investors own 98.50% of the company's stock.

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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