Madrigal Pharmaceuticals (NASDAQ:MDGL) Stock Price Passes Above 200 Day Moving Average - Here's Why

Key Points

• Madrigal Pharmaceuticals shares passed above its 200‑day moving average of $501.43, trading as high as $535.29 and last at $518.74, signaling a potential technical breakout.
• Analyst sentiment is broadly positive with a consensus rating of "Moderate Buy" and an average price target of $685.31, while several brokers have raised targets (one as high as $964).
• The company reported a large EPS miss (loss of $2.57 vs. $0.04 expected) but beat revenue estimates at $321.08M, up 210.8% year‑over‑year; insiders have sold shares recently and institutional investors own about 98.5% of the stock.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report) shares passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $501.43 and traded as high as $535.29. Madrigal Pharmaceuticals shares last traded at $518.74, with a volume of 330,187 shares trading hands.

Analysts Set New Price Targets

Several brokerages recently weighed in on MDGL. Citizens Jmp upped their price target on Madrigal Pharmaceuticals from $527.00 to $745.00 and gave the stock a "market outperform" rating in a research note on Tuesday, January 20th. Barclays began coverage on Madrigal Pharmaceuticals in a research report on Tuesday, January 27th. They set an "overweight" rating and a $964.00 price objective for the company. Wolfe Research set a $579.00 target price on shares of Madrigal Pharmaceuticals in a report on Tuesday, January 6th. The Goldman Sachs Group reiterated a "buy" rating and issued a $571.00 price target on shares of Madrigal Pharmaceuticals in a research note on Wednesday, January 14th. Finally, Bank of America lowered their price target on shares of Madrigal Pharmaceuticals from $570.00 to $529.00 and set a "neutral" rating for the company in a research report on Friday, February 20th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $685.31.

Madrigal Pharmaceuticals Stock Down 2.0%

The company's 50-day moving average is $478.33 and its 200 day moving average is $501.43. The company has a market capitalization of $11.90 billion, a PE ratio of -40.31 and a beta of -1.00. The company has a debt-to-equity ratio of 0.56, a quick ratio of 3.77 and a current ratio of 4.01.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last released its quarterly earnings data on Thursday, February 19th. The biopharmaceutical company reported ($2.57) earnings per share for the quarter, missing analysts' consensus estimates of $0.04 by ($2.61). The firm had revenue of $321.08 million for the quarter, compared to the consensus estimate of $310.36 million. Madrigal Pharmaceuticals had a negative net margin of 30.08% and a negative return on equity of 43.76%. The firm's revenue for the quarter was up 210.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($2.71) earnings per share. As a group, analysts anticipate that Madrigal Pharmaceuticals, Inc. will post -5.22 EPS for the current year.

Insider Buying and Selling

In related news, CFO Mardi Dier sold 1,982 shares of the business'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 value of $853,984.34. Following the completion of the transaction, the chief financial officer directly owned 12,490 shares in the company, valued at $5,381,566.30. The trade was a 13.70% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Shannon T. Kelley sold 360 shares of the stock in a transaction on Friday, March 6th. The shares were sold at an average price of $431.94, for a total value of $155,498.40. Following the sale, the general counsel owned 12,138 shares in the company, valued at approximately $5,242,887.72. This represents a 2.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 9,232 shares of company stock worth $4,170,736 over the last 90 days. 21.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of MDGL. Wellington Management Group LLP boosted its holdings in shares of Madrigal Pharmaceuticals by 5,381.2% during the 3rd quarter. Wellington Management Group LLP now owns 404,455 shares of the biopharmaceutical company's stock valued at $185,507,000 after acquiring an additional 397,076 shares during the last quarter. Norges Bank purchased a new stake in Madrigal Pharmaceuticals in the fourth quarter worth approximately $114,368,000. Baker BROS. Advisors LP boosted its holdings in Madrigal Pharmaceuticals by 8.4% in the third quarter. Baker BROS. Advisors LP now owns 2,141,701 shares of the biopharmaceutical company's stock worth $982,313,000 after purchasing an additional 165,683 shares during the last quarter. Deutsche Bank AG grew its position in Madrigal Pharmaceuticals by 414.5% in the 4th quarter. Deutsche Bank AG now owns 192,109 shares of the biopharmaceutical company's stock worth $111,873,000 after purchasing an additional 154,767 shares during the period. Finally, Lord Abbett & CO. LLC raised its stake in Madrigal Pharmaceuticals by 139.7% during the 4th quarter. Lord Abbett & CO. LLC now owns 244,796 shares of the biopharmaceutical company's stock valued at $142,555,000 after buying an additional 142,653 shares during the last quarter. 98.50% of the stock is owned by institutional investors.

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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