Madrigal Pharmaceuticals (NASDAQ:MDGL) Shares Gap Down - Time to Sell?

Key Points

• Madrigal Pharmaceuticals shares fell 11.9%, opening at $505.55 versus a prior close of $546.88 and later trading near $454.07.
• Despite the selloff, analysts maintain a “Moderate Buy” consensus, with an average price target of $688.33; recent targets range from $542 to $709.
• The company beat quarterly expectations, reporting an adjusted loss of $1.99 per share versus the expected $2.68 loss and revenue of $364.25 million, up 71.2% year over year. However, insiders sold about $3.88 million of shares over the past 90 days.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report)'s share price gapped down before the market opened on Thursday . The stock had previously closed at $546.88, but opened at $505.55. Madrigal Pharmaceuticals shares last traded at $454.0720, with a volume of 263,073 shares traded.

Analyst Ratings Changes

Several analysts have issued reports on the company. Wells Fargo & Company assumed coverage on Madrigal Pharmaceuticals in a report on Monday. They issued an "overweight" rating and a $685.00 target price for the company. Truist Financial raised their price objective on shares of Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the stock a "buy" rating in a research report on Wednesday, May 13th. Canaccord Genuity Group lifted their target price on shares of Madrigal Pharmaceuticals from $578.00 to $587.00 and gave the stock a "buy" rating in a research note on Wednesday. Bank of America reduced their target price on shares of Madrigal Pharmaceuticals from $550.00 to $542.00 and set a "neutral" rating on the stock in a research note on Thursday, June 11th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $688.33.

Madrigal Pharmaceuticals Trading Down 11.9%

The firm has a market capitalization of $11.11 billion, a price-to-earnings ratio of -37.49 and a beta of -1.05. The company has a debt-to-equity ratio of 0.63, a quick ratio of 3.16 and a current ratio of 3.50. The company has a 50-day moving average price of $517.89 and a 200-day moving average price of $499.42.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last posted its earnings results on Thursday, July 30th. The biopharmaceutical company reported ($1.99) EPS for the quarter, topping analysts' consensus estimates of ($2.68) by $0.69. The business had revenue of $364.25 million for the quarter, compared to analysts' expectations of $352.13 million. Madrigal Pharmaceuticals had a negative return on equity of 50.15% and a negative net margin of 27.32%.The business's revenue was up 71.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($1.90) earnings per share. As a group, research analysts forecast that Madrigal Pharmaceuticals, Inc. will post -7.45 EPS for the current fiscal year.

Insiders Place Their Bets

In other Madrigal Pharmaceuticals news, insider David Soergel sold 1,042 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $495.74, for a total transaction of $516,561.08. Following the sale, the insider owned 10,033 shares in the company, valued at approximately $4,973,759.42. This represents a 9.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Richard S. Levy sold 5,682 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $515.44, for a total value of $2,928,730.08. Following the completion of the transaction, the director directly owned 22,015 shares in the company, valued at $11,347,411.60. This trade represents a 20.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 7,568 shares of company stock worth $3,880,711 in the last ninety days. 17.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Janus Henderson Group PLC lifted its holdings in shares of Madrigal Pharmaceuticals by 27.4% during the 1st quarter. Janus Henderson Group PLC now owns 2,018,647 shares of the biopharmaceutical company's stock valued at $1,051,727,000 after acquiring an additional 433,804 shares in the last quarter. Wellington Management Group LLP lifted its stake in shares of Madrigal Pharmaceuticals by 5,381.2% during the third quarter. Wellington Management Group LLP now owns 404,455 shares of the biopharmaceutical company's stock worth $185,507,000 after purchasing an additional 397,076 shares in the last quarter. Norges Bank acquired a new stake in shares of Madrigal Pharmaceuticals in the fourth quarter valued at about $114,368,000. Deutsche Bank AG lifted its position in Madrigal Pharmaceuticals by 414.5% during the 4th quarter. Deutsche Bank AG now owns 192,109 shares of the biopharmaceutical company's stock worth $111,873,000 after acquiring an additional 154,767 shares in the last quarter. Finally, Lord Abbett & CO. LLC boosted its holdings in Madrigal Pharmaceuticals by 139.7% in the 4th quarter. Lord Abbett & CO. LLC now owns 244,796 shares of the biopharmaceutical company's stock worth $142,555,000 after acquiring an additional 142,653 shares during the period. 98.50% of the stock is owned by institutional investors and hedge funds.

Madrigal Pharmaceuticals Company Profile

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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