Madrigal Pharmaceuticals (NASDAQ:MDGL) Posts Earnings Results, Beats Expectations By $1.58 EPS

Key Points

• Madrigal Pharmaceuticals reported a quarterly earnings loss of ($1.90) EPS, significantly outperforming analysts' expectations of ($3.64) by $1.74, with a revenue increase of 1357.5% year-over-year.
• The company's stock price rose to $337.97 during trading, with insider sales decreasing their ownership percentage and analysts generally maintaining a positive outlook, reflected in a consensus rating of "Moderate Buy."
• UBS Group and other analyst firms have increased their price targets for Madrigal Pharmaceuticals, with ranges between $420.00 and $458.00, indicating strong growth expectations for the company's lead product in development for NASH.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) released its earnings results on Tuesday. The biopharmaceutical company reported ($1.90) EPS for the quarter, topping analysts' consensus estimates of ($3.48) by $1.58, Zacks reports. The company had revenue of $212.80 million for the quarter, compared to analysts' expectations of $158.94 million. Madrigal Pharmaceuticals had a negative return on equity of 50.54% and a negative net margin of 123.38%. The business's revenue for the quarter was up 1357.5% compared to the same quarter last year. During the same period in the previous year, the business posted ($7.10) EPS.

Madrigal Pharmaceuticals Price Performance

Shares of NASDAQ MDGL traded up $26.10 during midday trading on Tuesday, hitting $338.21. 1,099,219 shares of the company's stock were exchanged, compared to its average volume of 374,700. Madrigal Pharmaceuticals has a 12-month low of $200.63 and a 12-month high of $377.46. The company has a current ratio of 5.91, a quick ratio of 5.58 and a debt-to-equity ratio of 0.17. The company has a market cap of $7.51 billion, a price-to-earnings ratio of -18.74 and a beta of -1.02. The business's fifty day moving average price is $295.25 and its two-hundred day moving average price is $312.01.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on MDGL shares. UBS Group lifted their target price on Madrigal Pharmaceuticals from $441.00 to $458.00 and gave the stock a "buy" rating in a research note on Friday, May 2nd. Wall Street Zen upgraded Madrigal Pharmaceuticals from a "sell" rating to a "hold" rating in a research note on Monday, May 5th. JMP Securities restated a "market outperform" rating and issued a $443.00 price objective on shares of Madrigal Pharmaceuticals in a research note on Thursday, April 24th. B. Riley restated a "buy" rating and issued a $460.00 price objective (up from $422.00) on shares of Madrigal Pharmaceuticals in a research note on Friday, May 2nd. Finally, Canaccord Genuity Group boosted their price objective on Madrigal Pharmaceuticals from $394.00 to $420.00 and gave the company a "buy" rating in a research note on Friday, May 2nd. Two investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $420.63.

Insider Activity

In other news, Director Rebecca Taub sold 26,444 shares of the business's stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $353.47, for a total transaction of $9,347,160.68. Following the completion of the transaction, the director owned 461,044 shares of the company's stock, valued at approximately $162,965,222.68. The trade was a 5.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Paul A. Friedman sold 26,176 shares of the business's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $353.47, for a total transaction of $9,252,430.72. Following the completion of the sale, the director owned 187,164 shares of the company's stock, valued at approximately $66,156,859.08. The trade was a 12.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 60,377 shares of company stock valued at $21,316,969 in the last three months. 21.50% of the stock is owned by insiders.

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.