Madrigal Pharmaceuticals (NASDAQ:MDGL) Hits New 1-Year Low - Should You Sell?

Key Points

• Madrigal shares fell to a new 52-week low, touching $367.02 and last trading at $377.30, despite strong quarterly results.
• Third-quarter EPS of $1.83 and revenue of $431.27 million beat analyst estimates; Rezdiffra sales reportedly exceeded $1 billion. Near-term profitability concerns were cited as a factor weighing on the stock.
• Analyst sentiment remains mostly positive: the average rating is “Moderate Buy” with a $703.80 price target, while the company also faces a securities-law investigation announcement that is not a finding of wrongdoing.

Shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday. The company traded as low as $367.02 and last traded at $377.30, with a volume of 152,363 shares changing hands. The stock had previously closed at $396.32.

Madrigal Pharmaceuticals News Summary

Here are the key news stories impacting Madrigal Pharmaceuticals this week:

• Positive Sentiment: Third-quarter EPS was $1.83, well ahead of analysts’ expected loss of $1.09, while revenue of $431.27 million topped estimates of $404.17 million. Rezdiffra sales reportedly surpassed $1 billion, with sales up 50%. Madrigal third-quarter 2026 results
• Positive Sentiment: Citigroup raised its price target to $760 and maintained a Buy rating, signaling substantial potential upside in the analyst’s view. Citigroup price-target update
• Neutral Sentiment: Madrigal expects a MAESTRO-NASH OUTCOMES readout in late 2027 and is planning a study of more than 2,000 patients. These programs may provide future catalysts, but the timing is relatively distant. Clinical-trial update
• Negative Sentiment: Despite the earnings beat, coverage pointed to near-term profitability concerns as a factor behind the stock’s weakness. Separately, Kaplan Fox announced an investigation into potential securities-law violations. The announcement is an investigation notice, not a finding of wrongdoing. Report on profitability concerns Kaplan Fox investigation announcement

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Citigroup upped their target price on Madrigal Pharmaceuticals from $725.00 to $760.00 and gave the company a "buy" rating in a report on Tuesday. UBS Group reissued a "buy" rating and set a $735.00 price target on shares of Madrigal Pharmaceuticals in a research report on Wednesday, October 14th. Weiss Ratings reissued a "sell (d-)" rating on shares of Madrigal Pharmaceuticals in a report on Thursday, October 15th. Truist Financial restated a "buy" rating and set a $743.00 price objective (up from $709.00) on shares of Madrigal Pharmaceuticals in a research report on Wednesday. Finally, Wells Fargo & Company began coverage on shares of Madrigal Pharmaceuticals in a research note on Monday, July 27th. They set an "overweight" rating and a $685.00 target price on the stock. Fourteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $703.80.

Madrigal Pharmaceuticals Stock Performance

The stock has a market capitalization of $9.10 billion, a PE ratio of -30.49 and a beta of -0.98. The stock has a fifty day moving average of $494.64 and a 200-day moving average of $498.92. The company has a quick ratio of 2.94, a current ratio of 3.20 and a debt-to-equity ratio of 0.65.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last announced its quarterly earnings data on Tuesday, November 3rd. The biopharmaceutical company reported $1.83 EPS for the quarter, topping analysts' consensus estimates of ($1.09) by $2.92. Madrigal Pharmaceuticals had a negative return on equity of 56.65% and a negative net margin of 25.32%. The business had revenue of $431.27 million during the quarter, compared to the consensus estimate of $404.17 million. During the same period in the previous year, the company posted ($5.08) earnings per share. Equities analysts anticipate that Madrigal Pharmaceuticals, Inc. will post -7.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO William Sibold sold 5,221 shares of Madrigal Pharmaceuticals stock in a transaction on Friday, September 11th. The shares were sold at an average price of $542.39, for a total transaction of $2,831,818.19. Following the completion of the sale, the chief executive officer directly owned 197,746 shares of the company's stock, valued at approximately $107,255,452.94. The trade was a 2.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Shannon Kelley sold 664 shares of the business's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $514.97, for a total transaction of $341,940.08. Following the transaction, the general counsel owned 11,474 shares of the company's stock, valued at approximately $5,908,765.78. The trade was a 5.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 12,247 shares of company stock worth $6,581,182 over the last 90 days. Company insiders own 17.60% of the company's stock.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MDGL. Persistent Asset Partners Ltd acquired a new stake in Madrigal Pharmaceuticals during the second quarter worth approximately $29,000. Global Retirement Partners LLC acquired a new position in shares of Madrigal Pharmaceuticals in the 2nd quarter valued at $34,000. Provenance Wealth Advisors LLC purchased a new position in shares of Madrigal Pharmaceuticals in the 3rd quarter valued at $69,000. Root Financial Partners LLC acquired a new stake in Madrigal Pharmaceuticals during the 3rd quarter worth $82,000. Finally, GAMMA Investing LLC raised its stake in Madrigal Pharmaceuticals by 35.4% during the 2nd quarter. GAMMA Investing LLC now owns 172 shares of the biopharmaceutical company's stock worth $92,000 after acquiring an additional 45 shares in the last quarter. 98.50% of the stock is owned by institutional investors and hedge funds.

Madrigal Pharmaceuticals Company Profile

Madrigal Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing medicines for nonalcoholic steatohepatitis, now known as metabolic dysfunction-associated steatohepatitis (MASH), and other chronic liver diseases. The company is headquartered in West Conshohocken, Pennsylvania.

Madrigal's lead product is Rezdiffra (resmetirom), an orally administered thyroid hormone receptor beta agonist designed to target key drivers of liver disease, including hepatic fat accumulation and fibrosis.

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.