Madrigal Pharmaceuticals (NASDAQ:MDGL) Reaches New 52-Week High - Should You Buy?

Key Points

• Madrigal Pharmaceuticals' stock reached a new 52-week high of $422.00, closing at $415.50, with strong trading volume of 354 shares.
• Analysts predominantly maintain a positive outlook on the stock, with an average rating of "Moderate Buy" and price targets ranging from $428.00 to $523.00.
• The company reported a remarkable revenue increase of 1357.5% year-over-year, totaling $212.80 million for the last quarter, despite posting a negative earnings per share of ($1.90).

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report)'s stock price hit a new 52-week high on Monday . The stock traded as high as $422.00 and last traded at $415.50, with a volume of 354 shares changing hands. The stock had previously closed at $414.68.

Analysts Set New Price Targets

Several equities analysts have recently commented on MDGL shares. Wall Street Zen raised shares of Madrigal Pharmaceuticals from a "sell" rating to a "hold" rating in a report on Monday, May 5th. 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 research report on Wednesday, August 20th. B. Riley restated a "buy" rating and issued a $460.00 price target (up previously from $422.00) on shares of Madrigal Pharmaceuticals in a research report on Friday, May 2nd. Canaccord Genuity Group boosted their price target on shares of Madrigal Pharmaceuticals from $420.00 to $428.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Finally, UBS Group reiterated 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. Seven 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, Madrigal Pharmaceuticals currently has an average rating of "Moderate Buy" and an average target price of $445.71.

Madrigal Pharmaceuticals Trading Up 1.2%

The company has a debt-to-equity ratio of 0.17, a quick ratio of 4.78 and a current ratio of 5.11. The company's fifty day simple moving average is $321.05 and its 200-day simple moving average is $316.49. The company has a market capitalization of $9.31 billion, a P/E ratio of -32.73 and a beta of -1.02.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last issued its earnings results 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 company had revenue of $212.80 million for the quarter, compared to analysts' expectations of $158.94 million. During the same period in the prior year, the business earned ($7.10) EPS. The firm's quarterly revenue was up 1357.5% on a year-over-year basis. Research analysts predict that Madrigal Pharmaceuticals, Inc. will post -23.47 earnings per share for the current year.

Insider Activity at Madrigal Pharmaceuticals

In other news, Director Bros. Advisors Lp Baker purchased 68,618 shares of the firm's stock in a transaction on Monday, August 18th. The stock was acquired at an average cost of $364.04 per share, with a total value of $24,979,696.72. Following the completion of the transaction, the director owned 1,859,091 shares in the company, valued at $676,783,487.64. This represents a 3.83% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Kenneth Bate sold 10,000 shares of the stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $365.20, for a total transaction of $3,652,000.00. Following the sale, the director directly owned 2,627 shares of the company's stock, valued at approximately $959,380.40. The trade was a 79.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders purchased 165,683 shares of company stock worth $61,921,142 and sold 301,740 shares worth $109,461,331. Insiders own 21.50% of the company's stock.

Institutional Trading of Madrigal Pharmaceuticals

Several hedge funds have recently modified their holdings of the company. Paulson & CO. Inc. lifted its position in shares of Madrigal Pharmaceuticals by 2.8% during the first quarter. Paulson & CO. Inc. now owns 2,099,523 shares of the biopharmaceutical company's stock valued at $695,425,000 after buying an additional 57,523 shares during the last quarter. Adage Capital Partners GP L.L.C. raised its position in shares of 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 valued at $113,842,000 after purchasing an additional 184,554 shares during the last quarter. Woodline Partners LP increased its holdings in Madrigal Pharmaceuticals by 2.7% in the 1st quarter. Woodline Partners LP now owns 317,433 shares of the biopharmaceutical company's stock worth $105,143,000 after buying an additional 8,316 shares during the period. Bank of America Corp DE grew its stake in shares of Madrigal Pharmaceuticals by 12.7% during the 2nd quarter. Bank of America Corp DE now owns 277,221 shares of the biopharmaceutical company's stock worth $83,898,000 after purchasing an additional 31,260 shares during the period. Finally, Hood River Capital Management LLC grew its stake in shares of Madrigal Pharmaceuticals by 0.3% during the 2nd quarter. Hood River Capital Management LLC now owns 244,738 shares of the biopharmaceutical company's stock worth $74,068,000 after purchasing an additional 744 shares during the period. 98.50% of the stock is 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.

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