Madrigal Pharmaceuticals (NASDAQ:MDGL) Stock Price Expected to Rise, JMP Securities Analyst Says

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 price target hoisted by JMP Securities from $483.00 to $485.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has a "market outperform" rating on the biopharmaceutical company's stock. JMP Securities' target price suggests a potential upside of 16.78% from the stock's current price.

A number of other equities research analysts have also weighed in on the company. 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 report on Tuesday, August 12th. Wall Street Zen raised Madrigal Pharmaceuticals from a "sell" rating to a "hold" rating in a research note on Monday, May 5th. Canaccord Genuity Group increased 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, B. Riley reissued a "buy" rating and set a $460.00 price objective (up from $422.00) on shares of Madrigal Pharmaceuticals in a report on Friday, May 2nd. Seven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, Madrigal Pharmaceuticals presently has a consensus rating of "Moderate Buy" and an average price target of $445.71.

Madrigal Pharmaceuticals Stock Performance

Shares of MDGL traded up $0.64 during mid-day trading on Wednesday, reaching $415.32. The company's stock had a trading volume of 137,837 shares, compared to its average volume of 381,172. The stock has a market cap of $9.22 billion, a P/E ratio of -32.32 and a beta of -1.02. The business has a 50-day simple moving average of $321.05 and a two-hundred day simple moving average of $316.49. The company has a current ratio of 5.11, a quick ratio of 4.78 and a debt-to-equity ratio of 0.17. Madrigal Pharmaceuticals has a 1-year low of $200.63 and a 1-year high of $423.20.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The biopharmaceutical company reported ($1.90) earnings per share for the quarter, topping the consensus estimate of ($3.48) by $1.58. Madrigal Pharmaceuticals had a negative return on equity of 38.38% and a negative net margin of 54.68%.The business had revenue of $212.80 million during the quarter, compared to analysts' expectations of $158.94 million. During the same period last year, the firm posted ($7.10) EPS. The firm's revenue for the quarter was up 1357.5% compared to the same quarter last year. As a group, equities research analysts anticipate that Madrigal Pharmaceuticals will post -23.47 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Madrigal Pharmaceuticals news, Director Bros. Advisors Lp Baker bought 59,901 shares of the business's stock in a transaction that occurred on Wednesday, August 20th. The shares were bought at an average cost of $385.16 per share, with a total value of $23,071,469.16. Following the completion of the purchase, the director directly owned 1,947,968 shares of the company's stock, valued at $750,279,354.88. This trade represents a 3.17% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 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 value of $3,047,770.88. Following the completion of the sale, the chief executive officer directly owned 109,753 shares in the company, valued at $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. Over the last ninety days, insiders purchased 165,683 shares of company stock valued at $61,921,142 and sold 301,740 shares valued at $109,461,331. Company insiders own 21.50% of the company's stock.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

Several large investors have recently made changes to their positions in MDGL. VSM Wealth Advisory LLC purchased a new position in shares of Madrigal Pharmaceuticals during the first quarter valued at approximately $25,000. Accent Capital Management LLC purchased a new stake in Madrigal Pharmaceuticals during the 1st quarter valued at $25,000. AlphaQuest LLC lifted its holdings in Madrigal Pharmaceuticals by 412.5% in the second quarter. AlphaQuest LLC now owns 82 shares of the biopharmaceutical company's stock valued at $25,000 after acquiring an additional 66 shares during the period. Summit Securities Group LLC purchased a new stake in shares of Madrigal Pharmaceuticals during the first quarter worth about $33,000. Finally, Farther Finance Advisors LLC boosted its holdings 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.

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.