Madrigal Pharmaceuticals (NASDAQ:MDGL) Reaches New 52-Week High - Here's Why

Key Points

• Madrigal Pharmaceuticals has reached a new 52-week high, trading at approximately $447.57, with substantial volume at 234,646 shares traded.
• Multiple analysts have issued upgraded ratings and price targets for the stock, with a consensus target price now at $471.13 and nine analysts rating it a "buy."
• In its latest earnings report, Madrigal topped expectations with a quarterly revenue increase of 1357.5%, reporting $212.80 million compared to estimates of $158.94 million.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report) shares reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $446.10 and last traded at $447.57, with a volume of 234646 shares changing hands. The stock had previously closed at $432.89.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on MDGL shares. UBS Group reissued a "buy" rating and issued a $523.00 price target (up from $458.00) on shares of Madrigal Pharmaceuticals in a research note on Tuesday, August 12th. Cowen reissued a "buy" rating on shares of Madrigal Pharmaceuticals in a research note on Tuesday, August 26th. Canaccord Genuity Group raised their price target on shares of Madrigal Pharmaceuticals from $428.00 to $526.00 and gave the stock a "buy" rating in a research note on Friday. TD Cowen raised their price target 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. Finally, JMP Securities raised their price target on shares of Madrigal Pharmaceuticals from $483.00 to $485.00 and gave the stock a "market outperform" rating in a research note on Wednesday, August 20th. Nine investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $483.38.

Madrigal Pharmaceuticals Trading Down 1.6%

The stock has a market capitalization of $9.60 billion, a price-to-earnings ratio of -33.64 and a beta of -1.02. The company's 50-day moving average is $364.11 and its 200-day moving average is $326.91. The company has a quick ratio of 4.78, a current ratio of 5.11 and a debt-to-equity ratio of 0.17.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last released its quarterly earnings data 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 net margin of 54.68% and a negative return on equity of 38.38%. The firm had revenue of $212.80 million during the quarter, compared to analysts' expectations of $158.94 million. During the same period last year, the business earned ($7.10) earnings per share. Madrigal Pharmaceuticals's revenue was up 1357.5% compared to the same quarter last year. Research analysts anticipate that Madrigal Pharmaceuticals, Inc. will post -23.47 earnings per share for the current fiscal year.

Insider Activity

In other Madrigal Pharmaceuticals news, CEO William John Sibold sold 7,279 shares of Madrigal Pharmaceuticals stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $445.63, for a total transaction of $3,243,740.77. Following the completion of the sale, the chief executive officer directly owned 102,474 shares in the company, valued at $45,665,488.62. This trade represents a 6.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Shannon T. Kelley sold 1,304 shares of Madrigal Pharmaceuticals stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $367.81, for a total transaction of $479,624.24. Following the sale, the general counsel owned 9,173 shares of the company's stock, valued at approximately $3,373,921.13. This represents a 12.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders acquired 165,683 shares of company stock valued at $61,921,142 and sold 309,019 shares valued at $112,705,072. 21.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Madrigal Pharmaceuticals

Institutional investors have recently made changes to their positions in the stock. Paulson & CO. Inc. boosted its stake in shares of Madrigal Pharmaceuticals by 2.8% in the first quarter. Paulson & CO. Inc. now owns 2,099,523 shares of the biopharmaceutical company's stock valued at $695,425,000 after purchasing an additional 57,523 shares during the period. Adage Capital Partners GP L.L.C. boosted its stake in shares of Madrigal Pharmaceuticals by 96.3% in the second quarter. Adage Capital Partners GP L.L.C. now owns 376,163 shares of the biopharmaceutical company's stock valued at $113,842,000 after purchasing an additional 184,554 shares during the period. Woodline Partners LP boosted its stake in shares of Madrigal Pharmaceuticals by 2.7% in the first quarter. Woodline Partners LP now owns 317,433 shares of the biopharmaceutical company's stock valued at $105,143,000 after purchasing an additional 8,316 shares during the period. Bank of America Corp DE boosted its stake in shares of Madrigal Pharmaceuticals by 12.7% in the second quarter. Bank of America Corp DE now owns 277,221 shares of the biopharmaceutical company's stock valued at $83,898,000 after purchasing an additional 31,260 shares during the period. Finally, Hood River Capital Management LLC lifted its stake in Madrigal Pharmaceuticals by 0.3% in the second quarter. Hood River Capital Management LLC now owns 244,738 shares of the biopharmaceutical company's stock worth $74,068,000 after acquiring an additional 744 shares during the last quarter. 98.50% of the stock is currently owned by institutional investors and hedge funds.

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.