Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) Short Interest Update

Key Points

• Short interest fell 41.5% to 2.06 million shares as of July 15, representing approximately 10.9% of Madrigal Pharmaceuticals’ shares outstanding and 6.9 days of average trading volume.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $688.33; recent firms raised targets as high as $709.
• Madrigal reported quarterly revenue of $364.25 million, up 71.2% year over year and above estimates, while posting an adjusted loss of $1.99 per share that beat expectations. Shares recently traded at $485.51, down sharply during the session.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report) saw a large decline in short interest during the month of July. As of July 15th, there was short interest totaling 2,062,862 shares, a decline of 41.5% from the June 30th total of 3,526,539 shares. Approximately 10.9% of the shares of the company are short sold. Based on an average daily volume of 297,279 shares, the short-interest ratio is presently 6.9 days.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Canaccord Genuity Group raised their price objective on Madrigal Pharmaceuticals from $578.00 to $587.00 and gave the stock a "buy" rating in a research note on Wednesday. HC Wainwright reiterated a "buy" rating and issued a $620.00 price target on shares of Madrigal Pharmaceuticals in a report on Wednesday, May 6th. Truist Financial lifted their price objective on shares of Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the company a "buy" rating in a research note on Wednesday, May 13th. Citigroup reaffirmed an "outperform" rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 17th. Finally, Piper Sandler reiterated an "overweight" rating on shares of Madrigal Pharmaceuticals in a research note on Wednesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $688.33.

Insider Buying and Selling

In other news, Director Richard S. Levy sold 5,682 shares of the business's stock in a transaction 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 sale, the director directly owned 22,015 shares of the company's stock, valued at $11,347,411.60. The trade was a 20.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David Soergel sold 1,042 shares of the company's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $495.74, for a total value of $516,561.08. Following the completion of the transaction, the insider directly owned 10,033 shares in the company, valued at approximately $4,973,759.42. The trade was a 9.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 worth $3,880,711 in the last 90 days. 17.60% of the stock is currently owned by company insiders.

Institutional Trading of Madrigal Pharmaceuticals

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Flagship Harbor Advisors LLC purchased a new position in shares of Madrigal Pharmaceuticals during the 4th quarter valued at approximately $29,000. Kemnay Advisory Services Inc. acquired a new position in Madrigal Pharmaceuticals during the fourth quarter worth $39,000. Quarry LP acquired a new position in Madrigal Pharmaceuticals during the third quarter worth $39,000. Eastern Bank lifted its holdings in Madrigal Pharmaceuticals by 32.3% during the fourth quarter. Eastern Bank now owns 86 shares of the biopharmaceutical company's stock valued at $50,000 after purchasing an additional 21 shares in the last quarter. Finally, Johnson Financial Group Inc. acquired a new stake in shares of Madrigal Pharmaceuticals in the third quarter valued at about $50,000. 98.50% of the stock is currently owned by hedge funds and other institutional investors.

Madrigal Pharmaceuticals Price Performance

Shares of Madrigal Pharmaceuticals stock traded down $61.37 during trading hours on Thursday, reaching $485.51. The stock had a trading volume of 1,264,325 shares, compared to its average volume of 350,276. The stock's 50 day moving average is $517.89 and its 200 day moving average is $499.42. The company has a current ratio of 3.50, a quick ratio of 3.16 and a debt-to-equity ratio of 0.63. Madrigal Pharmaceuticals has a twelve month low of $290.00 and a twelve month high of $615.00. The firm has a market capitalization of $11.20 billion, a PE ratio of -37.93 and a beta of -1.05.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The biopharmaceutical company reported ($1.99) earnings per share for the quarter, beating the consensus estimate of ($2.68) by $0.69. The firm had revenue of $364.25 million during the quarter, compared to analyst estimates of $352.13 million. Madrigal Pharmaceuticals had a negative return on equity of 50.15% and a negative net margin of 27.32%.Madrigal Pharmaceuticals's revenue for the quarter was up 71.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($1.90) EPS. Equities analysts expect that Madrigal Pharmaceuticals will post -7.45 earnings per share for the current fiscal year.

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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