Madrigal Pharmaceuticals (NASDAQ:MDGL) Receives Buy Rating from HC Wainwright

Key Points

• HC Wainwright reiterated a Buy rating on Madrigal with a $620 price target (about a 23% upside), and the consensus from analysts is a "Moderate Buy" with an average target of $685.31.
• Madrigal's latest quarter beat expectations—EPS of $(3.25) vs. $(4.23) expected and revenue of $311.3M vs. $301.1M—but the company remains unprofitable with a negative net margin (~30.1%) and negative ROE (~43.8%).
• The stock trades around $502.47 (52‑week range $265–$615) with a market cap of ~$11.6B; insiders sold about 6,098 shares last quarter while insiders still own 21.5% and institutional ownership is reported at 98.5%.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report)'s stock had its "buy" rating restated by analysts at HC Wainwright in a report issued on Wednesday,Benzinga reports. They currently have a $620.00 price target on the biopharmaceutical company's stock. HC Wainwright's price target points to a potential upside of 23.39% from the stock's current price.

Other analysts have also recently issued research reports about the stock. Barclays initiated coverage on shares of Madrigal Pharmaceuticals in a report on Tuesday, January 27th. They set an "overweight" rating and a $964.00 target price on the stock. Wolfe Research set a $579.00 target price on shares of Madrigal Pharmaceuticals in a report on Tuesday, January 6th. Citigroup restated an "outperform" rating on shares of Madrigal Pharmaceuticals in a report on Tuesday, January 20th. TD Cowen reaffirmed a "buy" rating on shares of Madrigal Pharmaceuticals in a research report on Monday, January 12th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $571.00 price target on shares of Madrigal Pharmaceuticals in a research report on Wednesday, January 14th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Madrigal Pharmaceuticals has a consensus rating of "Moderate Buy" and a consensus target price of $685.31.

Madrigal Pharmaceuticals Stock Performance

Shares of MDGL stock opened at $502.47 on Wednesday. The stock has a fifty day moving average of $484.48 and a 200 day moving average of $505.79. Madrigal Pharmaceuticals has a 52 week low of $265.00 and a 52 week high of $615.00. The firm has a market capitalization of $11.58 billion, a price-to-earnings ratio of -39.04 and a beta of -1.04. The company has a quick ratio of 3.77, a current ratio of 4.01 and a debt-to-equity ratio of 0.56.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last announced its earnings results on Wednesday, May 6th. The biopharmaceutical company reported ($3.25) EPS for the quarter, beating analysts' consensus estimates of ($4.23) by $0.98. Madrigal Pharmaceuticals had a negative net margin of 30.08% and a negative return on equity of 43.76%. The firm had revenue of $311.34 million for the quarter, compared to analysts' expectations of $301.05 million. As a group, research analysts expect that Madrigal Pharmaceuticals will post -5.49 earnings per share for the current year.

Insider Transactions at Madrigal Pharmaceuticals

In other news, Director Rebecca Taub sold 491 shares of Madrigal Pharmaceuticals stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $431.94, for a total value of $212,082.54. Following the completion of the transaction, the director owned 452,213 shares of the company's stock, valued at $195,328,883.22. The trade was a 0.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Shannon T. Kelley sold 360 shares of Madrigal Pharmaceuticals stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $431.94, for a total value of $155,498.40. Following the completion of the transaction, the general counsel directly owned 12,138 shares of the company's stock, valued at approximately $5,242,887.72. This represents a 2.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 6,098 shares of company stock worth $2,626,254 over the last quarter. Corporate insiders own 21.50% of the company's stock.

Institutional Investors Weigh In On Madrigal Pharmaceuticals

Large investors have recently bought and sold shares of the business. Flagship Harbor Advisors LLC bought a new stake in Madrigal Pharmaceuticals in the 4th quarter worth about $29,000. Mather Group LLC. bought a new stake in Madrigal Pharmaceuticals in the 3rd quarter worth about $33,000. First Horizon Corp bought a new stake in Madrigal Pharmaceuticals in the 3rd quarter worth about $34,000. Global Retirement Partners LLC increased its holdings in Madrigal Pharmaceuticals by 221.7% in the 3rd quarter. Global Retirement Partners LLC now owns 74 shares of the biopharmaceutical company's stock worth $34,000 after buying an additional 51 shares in the last quarter. Finally, Aventura Private Wealth LLC bought a new stake in Madrigal Pharmaceuticals in the 4th quarter worth about $36,000. 98.50% of the stock is currently owned by institutional investors.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc is a clinical-stage biopharmaceutical company focused on the development of innovative therapies for cardiovascular, metabolic and liver diseases. The company's pipeline centers on novel, liver-directed agents designed to address significant unmet medical needs, with an emphasis on nonalcoholic steatohepatitis (NASH) and related metabolic disorders.

The lead product candidate, resmetirom (MGL-3196), is an orally administered, selective thyroid hormone receptor-β agonist in Phase 3 development for the treatment of NASH.

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