Madrigal Pharmaceuticals (NASDAQ:MDGL) Share Price Crosses Above 200 Day Moving Average - Time to Sell?

Key Points

• Madrigal shares crossed above their 200‑day moving average, trading as high as $529.81 versus a 200‑day MA of $498.53 and last at $518.58 on volume of 226,352 shares.
• Analyst sentiment is broadly positive with an average rating of "Moderate Buy" and an average price target of $685.31, while recent notable targets include Piper Sandler ($900) and Barclays ($964) amid mixed upgrades and a Bank of America neutral at $529.
• The company reported a quarterly EPS loss of ($2.57) that missed estimates despite revenue of $321.1M (up 210.8% YoY); insiders have been selling (12,162 shares last quarter) even as institutional ownership is very high (~98.5%) and several large funds increased stakes materially.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report) shares crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $498.53 and traded as high as $529.81. Madrigal Pharmaceuticals shares last traded at $518.58, with a volume of 226,352 shares traded.

Analyst Ratings Changes

MDGL has been the topic of a number of analyst reports. Piper Sandler increased their price target on Madrigal Pharmaceuticals from $540.00 to $900.00 and gave the company an "overweight" rating in a research note on Friday, December 19th. Citigroup reaffirmed an "outperform" rating on shares of Madrigal Pharmaceuticals in a research note on Tuesday, January 20th. Bank of America dropped their price objective on Madrigal Pharmaceuticals from $570.00 to $529.00 and set a "neutral" rating for the company in a report on Friday, February 20th. Barclays assumed coverage on Madrigal Pharmaceuticals in a research note on Tuesday, January 27th. They issued an "overweight" rating and a $964.00 target price on the stock. Finally, TD Cowen restated a "buy" rating on shares of Madrigal Pharmaceuticals in a report on Monday, January 12th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $685.31.

Madrigal Pharmaceuticals Trading Down 1.2%

The company's fifty day simple moving average is $472.40 and its two-hundred day simple moving average is $498.53. The company has a market capitalization of $11.90 billion, a price-to-earnings ratio of -40.29 and a beta of -1.00. 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 quarterly earnings results on Thursday, February 19th. The biopharmaceutical company reported ($2.57) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($2.61). Madrigal Pharmaceuticals had a negative net margin of 30.08% and a negative return on equity of 43.76%. The firm had revenue of $321.08 million during the quarter, compared to analyst estimates of $310.36 million. During the same period last year, the firm earned ($2.71) EPS. Madrigal Pharmaceuticals's quarterly revenue was up 210.8% on a year-over-year basis. Research analysts forecast that Madrigal Pharmaceuticals, Inc. will post -23.47 earnings per share for the current fiscal year.

Insider Transactions at Madrigal Pharmaceuticals

In other Madrigal Pharmaceuticals news, CFO Mardi Dier sold 1,982 shares of the firm's stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $430.87, for a total transaction of $853,984.34. Following the sale, the chief financial officer directly owned 12,490 shares in the company, valued at approximately $5,381,566.30. This trade represents a 13.70% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Rebecca Taub sold 2,238 shares of the business's stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $490.77, for a total transaction of $1,098,343.26. Following the completion of the sale, the director directly owned 453,351 shares in the company, valued at $222,491,070.27. This represents a 0.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 12,162 shares of company stock valued at $5,613,252. Insiders own 21.50% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP increased its stake in Madrigal Pharmaceuticals by 5,381.2% in the 3rd quarter. Wellington Management Group LLP now owns 404,455 shares of the biopharmaceutical company's stock valued at $185,507,000 after buying an additional 397,076 shares during the last quarter. Norges Bank acquired a new position in shares of Madrigal Pharmaceuticals during the 4th quarter worth about $114,368,000. Baker BROS. Advisors LP grew its holdings in shares of Madrigal Pharmaceuticals by 8.4% in the 3rd quarter. Baker BROS. Advisors LP now owns 2,141,701 shares of the biopharmaceutical company's stock valued at $982,313,000 after acquiring an additional 165,683 shares in the last quarter. Deutsche Bank AG increased its position in shares of Madrigal Pharmaceuticals by 414.5% in the fourth quarter. Deutsche Bank AG now owns 192,109 shares of the biopharmaceutical company's stock valued at $111,873,000 after acquiring an additional 154,767 shares during the last quarter. Finally, Lord Abbett & CO. LLC increased its position in shares of Madrigal Pharmaceuticals by 139.7% in the fourth quarter. Lord Abbett & CO. LLC now owns 244,796 shares of the biopharmaceutical company's stock valued at $142,555,000 after acquiring an additional 142,653 shares during the last quarter. Institutional investors and hedge funds own 98.50% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.