JMP Securities Forecasts Strong Price Appreciation for Madrigal Pharmaceuticals (NASDAQ:MDGL) Stock

Key Points

• Madrigal Pharmaceuticals has seen its price target raised by JMP Securities from $483.00 to $485.00, indicating a potential upside of 27.78% from the current stock price.
• The company's quarterly earnings surpassed expectations with a reported revenue of $212.80 million, up 1357.5% year-over-year, while also beating analysts' estimates for earnings per share.
• Insider trading activity has been significant, with multiple directors selling shares totaling over $106 million in the last quarter, leading to changes in ownership stakes.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) had its target price increased by analysts at JMP Securities from $483.00 to $485.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has a "market outperform" rating on the biopharmaceutical company's stock. JMP Securities' price target points to a potential upside of 16.96% from the company's previous close.

A number of other brokerages have also recently commented on MDGL. UBS Group restated a "buy" rating and set a $523.00 price objective (up previously from $458.00) on shares of Madrigal Pharmaceuticals in a research note on Tuesday, August 12th. B. Riley reiterated a "buy" rating and set a $460.00 target price (up from $422.00) on shares of Madrigal Pharmaceuticals in a report on Friday, May 2nd. Canaccord Genuity Group upped their price target on Madrigal Pharmaceuticals from $420.00 to $428.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Finally, Wall Street Zen raised shares of Madrigal Pharmaceuticals from a "sell" rating to a "hold" rating in a research report on Monday, May 5th. Seven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, Madrigal Pharmaceuticals currently has an average rating of "Moderate Buy" and a consensus price target of $445.71.

Madrigal Pharmaceuticals Trading Up 1.9%

NASDAQ:MDGL traded up $7.59 during trading hours on Wednesday, reaching $414.68. 465,908 shares of the company were exchanged, compared to its average volume of 461,278. The firm has a market cap of $9.21 billion, a price-to-earnings ratio of -32.27 and a beta of -1.02. The stock has a 50 day simple moving average of $321.05 and a 200 day simple moving average of $316.75. Madrigal Pharmaceuticals has a 52-week low of $200.63 and a 52-week high of $419.99. The company has a debt-to-equity ratio of 0.17, a current ratio of 5.11 and a quick ratio of 4.78.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The biopharmaceutical company reported ($1.90) EPS for the quarter, beating 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 for the quarter, compared to analyst estimates of $158.94 million. During the same quarter last year, the firm posted ($7.10) earnings per share. Madrigal Pharmaceuticals's revenue for the quarter was up 1357.5% compared to the same quarter last year. As a group, analysts predict that Madrigal Pharmaceuticals will post -23.47 EPS for the current year.

Insider Buying and Selling at Madrigal Pharmaceuticals

In other Madrigal Pharmaceuticals news, Director Bros. Advisors Lp Baker bought 68,618 shares of the company's stock in a transaction on Monday, August 18th. The shares were bought at an average cost of $364.04 per share, with a total value of $24,979,696.72. Following the completion of the acquisition, the director owned 1,859,091 shares of the company's stock, valued at approximately $676,783,487.64. This trade represents a 3.83% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO William John Sibold sold 7,616 shares of the firm's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $400.18, for a total transaction of $3,047,770.88. Following the completion of the transaction, the chief executive officer owned 109,753 shares in the company, valued at approximately $43,920,955.54. The trade was a 6.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have purchased 165,683 shares of company stock valued at $61,921,142 and have sold 301,740 shares valued at $109,461,331. 21.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

Institutional investors have recently modified their holdings of the company. Paulson & CO. Inc. increased its holdings in shares of Madrigal Pharmaceuticals by 2.8% in the 1st quarter. Paulson & CO. Inc. now owns 2,099,523 shares of the biopharmaceutical company's stock worth $695,425,000 after acquiring an additional 57,523 shares during the period. Adage Capital Partners GP L.L.C. grew its position in Madrigal Pharmaceuticals by 96.3% in the 2nd quarter. Adage Capital Partners GP L.L.C. now owns 376,163 shares of the biopharmaceutical company's stock worth $113,842,000 after purchasing an additional 184,554 shares during the last quarter. Woodline Partners LP increased 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 raised its holdings in shares of Madrigal Pharmaceuticals by 12.7% during 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 buying an additional 31,260 shares during the last quarter. Finally, Hood River Capital Management LLC boosted its position in shares of Madrigal Pharmaceuticals by 0.3% during the second quarter. Hood River Capital Management LLC now owns 244,738 shares of the biopharmaceutical company's stock worth $74,068,000 after buying an additional 744 shares during the period. Institutional investors own 98.50% of the company's stock.

Madrigal Pharmaceuticals Company Profile

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.