Madrigal Pharmaceuticals (NASDAQ:MDGL) Shares Up 7.1% - Here's Why

Key Points

• Madrigal Pharmaceuticals shares rose 7.1% on Wednesday, trading as high as $481.80 after closing at $452.86 the day before.
• Analyst sentiment remains mostly bullish, with Wells Fargo upgrading the stock to overweight and the consensus rating at Moderate Buy with a $687 average price target.
• The company recently reported better-than-expected quarterly results, posting a smaller-than-expected loss and revenue of $311.34 million, up 126.8% year over year.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report)'s stock price shot up 7.1% on Wednesday . The stock traded as high as $481.80 and last traded at $484.9990. 161,769 shares were traded during mid-day trading, a decline of 52% from the average session volume of 339,741 shares. The stock had previously closed at $452.86.

Analysts Set New Price Targets

Several brokerages recently weighed in on MDGL. Weiss Ratings reiterated a "sell (d-)" rating on shares of Madrigal Pharmaceuticals in a report on Tuesday, April 21st. HC Wainwright reiterated a "buy" rating and issued a $620.00 price target on shares of Madrigal Pharmaceuticals in a report on Wednesday, May 6th. Wells Fargo & Company upgraded shares of Madrigal Pharmaceuticals to an "overweight" rating in a report on Monday. Citigroup restated a "market outperform" rating on shares of Madrigal Pharmaceuticals in a research report on Monday. Finally, Canaccord Genuity Group lowered their price objective on Madrigal Pharmaceuticals from $587.00 to $578.00 and set a "buy" rating on the stock in a research report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $687.00.

Madrigal Pharmaceuticals Trading Up 7.6%

The firm has a market cap of $11.24 billion, a PE ratio of -37.96 and a beta of -1.07. The company has a current ratio of 3.50, a quick ratio of 3.16 and a debt-to-equity ratio of 0.63. The company has a 50-day simple moving average of $514.40 and a 200 day simple moving average of $515.10.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last announced its earnings results on Wednesday, May 6th. The biopharmaceutical company reported ($3.25) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($3.61) by $0.36. Madrigal Pharmaceuticals had a negative return on equity of 50.15% and a negative net margin of 27.32%.The firm had revenue of $311.34 million for the quarter, compared to analyst estimates of $301.05 million. During the same quarter last year, the firm posted ($3.32) EPS. The business's revenue was up 126.8% on a year-over-year basis. As a group, sell-side analysts forecast that Madrigal Pharmaceuticals, Inc. will post -7.23 earnings per share for the current fiscal year.

Insider Activity

In other Madrigal Pharmaceuticals news, Director Rebecca Taub sold 491 shares of the firm's stock in a transaction on Friday, March 6th. The stock was sold at an average price of $431.94, for a total value of $212,082.54. Following the transaction, the director owned 452,213 shares in the company, valued at approximately $195,328,883.22. This trade represents a 0.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Richard S. Levy sold 5,682 shares of the firm's stock in a transaction on Friday, May 22nd. The shares were 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 owned 22,015 shares in the company, valued at $11,347,411.60. The trade was a 20.51% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 12,483 shares of company stock worth $6,001,575. Insiders own 17.60% of the company's stock.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Eastern Bank lifted its position in shares of Madrigal Pharmaceuticals by 32.3% in the fourth quarter. Eastern Bank now owns 86 shares of the biopharmaceutical company's stock valued at $50,000 after acquiring an additional 21 shares in the last quarter. Centaurus Financial Inc. lifted its position in shares of Madrigal Pharmaceuticals by 5.0% in the third quarter. Centaurus Financial Inc. now owns 709 shares of the biopharmaceutical company's stock valued at $325,000 after acquiring an additional 34 shares in the last quarter. Farther Finance Advisors LLC lifted its position in shares of Madrigal Pharmaceuticals by 34.6% in the fourth quarter. Farther Finance Advisors LLC now owns 140 shares of the biopharmaceutical company's stock valued at $82,000 after acquiring an additional 36 shares in the last quarter. Accent Capital Management LLC lifted its position in shares of Madrigal Pharmaceuticals by 64.9% in the fourth quarter. Accent Capital Management LLC now owns 94 shares of the biopharmaceutical company's stock valued at $55,000 after acquiring an additional 37 shares in the last quarter. Finally, Swiss Life Asset Management Ltd increased its stake in Madrigal Pharmaceuticals by 6.8% in the fourth quarter. Swiss Life Asset Management Ltd now owns 690 shares of the biopharmaceutical company's stock valued at $402,000 after purchasing an additional 44 shares during the last quarter. 98.50% of the stock is currently owned by hedge funds and other 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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