Madrigal Pharmaceuticals (NASDAQ:MDGL) Shares Gap Up Following Earnings Beat

Key Points

• Madrigal Pharmaceuticals shares surged in pre-market trading, opening at $350.00 after an earnings report that beat expectations, with a reported EPS of ($1.90) compared to a consensus estimate of ($3.64).
• Analysts have raised their price targets on Madrigal, with JMP Securities setting a target of $443.00, while Canaccord Genuity and B. Riley have target prices of $420.00 and $460.00, respectively.
• Insider transactions showed significant selling activity as directors sold shares at an average price of $353.47, indicating a decrease in their holdings by over 5%.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report) shares gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $312.11, but opened at $350.00. Madrigal Pharmaceuticals shares last traded at $330.70, with a volume of 156,412 shares traded.

The biopharmaceutical company reported ($1.90) EPS for the quarter, beating the consensus estimate of ($3.64) by $1.74. Madrigal Pharmaceuticals had a negative return on equity of 50.54% and a negative net margin of 123.38%. During the same quarter last year, the business posted ($7.10) EPS. The company's quarterly revenue was up 1357.5% compared to the same quarter last year.

Analysts Set New Price Targets

MDGL has been the subject of several research reports. Wall Street Zen upgraded Madrigal Pharmaceuticals from a "sell" rating to a "hold" rating in a research note on Monday, May 5th. JMP Securities restated a "market outperform" rating and issued a $443.00 target price on shares of Madrigal Pharmaceuticals in a research note on Thursday, April 24th. Canaccord Genuity Group raised their target price on Madrigal Pharmaceuticals from $394.00 to $420.00 and gave the company a "buy" rating in a research note on Friday, May 2nd. B. Riley restated a "buy" rating and issued a $460.00 target price (up from $422.00) on shares of Madrigal Pharmaceuticals in a research note on Friday, May 2nd. Finally, UBS Group raised their target price on Madrigal Pharmaceuticals from $441.00 to $458.00 and gave the company a "buy" rating in a research note on Friday, May 2nd. Two research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. According to data from MarketBeat.com, Madrigal Pharmaceuticals presently has an average rating of "Moderate Buy" and a consensus price target of $420.63.

Insider Activity at Madrigal Pharmaceuticals

In related news, Director Rebecca Taub sold 26,444 shares of Madrigal Pharmaceuticals stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $353.47, for a total value of $9,347,160.68. Following the sale, the director owned 461,044 shares of the company's stock, valued at approximately $162,965,222.68. The trade was a 5.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Paul A. Friedman sold 26,176 shares of Madrigal Pharmaceuticals stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $353.47, for a total transaction of $9,252,430.72. Following the completion of the sale, the director directly owned 187,164 shares in the company, valued at $66,156,859.08. This trade represents a 12.27% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 60,377 shares of company stock worth $21,316,969. Insiders own 21.50% of the company's stock.

Institutional Investors Weigh In On Madrigal Pharmaceuticals

A number of hedge funds have recently modified their holdings of the stock. Mutual of America Capital Management LLC raised its holdings in Madrigal Pharmaceuticals by 0.3% during the 1st quarter. Mutual of America Capital Management LLC now owns 11,263 shares of the biopharmaceutical company's stock valued at $3,731,000 after acquiring an additional 31 shares during the period. Pitcairn Co. raised its holdings in Madrigal Pharmaceuticals by 3.2% during the 4th quarter. Pitcairn Co. now owns 1,060 shares of the biopharmaceutical company's stock valued at $327,000 after acquiring an additional 33 shares during the period. Park Avenue Securities LLC raised its holdings in Madrigal Pharmaceuticals by 6.6% during the 2nd quarter. Park Avenue Securities LLC now owns 699 shares of the biopharmaceutical company's stock valued at $212,000 after acquiring an additional 43 shares during the period. First Horizon Advisors Inc. raised its holdings in Madrigal Pharmaceuticals by 38.9% during the 1st quarter. First Horizon Advisors Inc. now owns 157 shares of the biopharmaceutical company's stock valued at $52,000 after acquiring an additional 44 shares during the period. Finally, AlphaQuest LLC raised its holdings in Madrigal Pharmaceuticals by 412.5% during the 2nd 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. Institutional investors own 98.50% of the company's stock.

Madrigal Pharmaceuticals Price Performance

The business's fifty day simple moving average is $295.25 and its 200-day simple moving average is $312.01. The company has a current ratio of 5.91, a quick ratio of 5.58 and a debt-to-equity ratio of 0.17. The firm has a market cap of $7.30 billion, a P/E ratio of -18.42 and a beta of -1.02.

About Madrigal Pharmaceuticals

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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