Madrigal Pharmaceuticals (NASDAQ:MDGL) Hits New 12-Month High - What's Next?

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.

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

Analyst Ratings Changes

Several research analysts have commented on MDGL shares. TD Cowen raised their target price on shares of Madrigal Pharmaceuticals from $390.00 to $554.00 and gave the stock a "buy" rating in a report on Tuesday, August 26th. Canaccord Genuity Group raised their price target on Madrigal Pharmaceuticals from $420.00 to $428.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. UBS Group reaffirmed a "buy" rating and issued a $523.00 price objective (up from $458.00) on shares of Madrigal Pharmaceuticals in a research note on Tuesday, August 12th. JMP Securities boosted their price target on shares of Madrigal Pharmaceuticals from $483.00 to $485.00 and gave the stock a "market outperform" rating in a report on Wednesday, August 20th. Finally, Cowen reiterated a "buy" rating on shares of Madrigal Pharmaceuticals in a research report on Tuesday, August 26th. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $471.13.

Madrigal Pharmaceuticals Price Performance

The company's 50 day moving average is $350.02 and its 200-day moving average is $322.84. The company has a current ratio of 5.11, a quick ratio of 4.78 and a debt-to-equity ratio of 0.17. The stock has a market cap of $10.07 billion, a PE ratio of -35.32 and a beta of -1.02.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last posted 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. The business had revenue of $212.80 million during the quarter, compared to the consensus estimate of $158.94 million. Madrigal Pharmaceuticals had a negative net margin of 54.68% and a negative return on equity of 38.38%. Madrigal Pharmaceuticals's quarterly revenue was up 1357.5% compared to the same quarter last year. During the same period in the prior year, the firm earned ($7.10) EPS. As a group, sell-side analysts predict that Madrigal Pharmaceuticals, Inc. will post -23.47 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Paul A. Friedman sold 129,172 shares of Madrigal Pharmaceuticals stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $370.24, for a total value of $47,824,641.28. Following the completion of the sale, the director directly owned 187,164 shares of the company's stock, valued at approximately $69,295,599.36. The trade was a 40.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO William John Sibold sold 7,616 shares of the business's stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $400.18, for a total value of $3,047,770.88. Following the transaction, the chief executive officer owned 109,753 shares in the company, valued at $43,920,955.54. The trade was a 6.49% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders purchased 165,683 shares of company stock worth $61,921,142 and sold 301,740 shares worth $109,461,331. Corporate insiders own 21.50% of the company's stock.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

Several institutional investors and hedge funds have recently modified their holdings of MDGL. VSM Wealth Advisory LLC acquired a new position in Madrigal Pharmaceuticals in the first quarter valued at approximately $25,000. Accent Capital Management LLC bought a new position in Madrigal Pharmaceuticals during the first quarter worth about $25,000. AlphaQuest LLC raised its stake in shares of Madrigal Pharmaceuticals by 412.5% during the second quarter. AlphaQuest LLC now owns 82 shares of the biopharmaceutical company's stock worth $25,000 after acquiring an additional 66 shares in the last quarter. Summit Securities Group LLC bought a new stake in shares of Madrigal Pharmaceuticals during the 1st quarter valued at $33,000. Finally, Farther Finance Advisors LLC increased its position in shares of Madrigal Pharmaceuticals by 825.0% during the 1st quarter. Farther Finance Advisors LLC now owns 111 shares of the biopharmaceutical company's stock valued at $36,000 after purchasing an additional 99 shares during the last quarter. 98.50% of the stock is currently owned by hedge funds and other institutional investors.

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.

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