Madrigal Pharmaceuticals (NASDAQ:MDGL) Trading Up 7.1% - Here's What Happened

Key Points

• Madrigal Pharmaceuticals shares rose 7.1% to $548.71 in Wednesday trading, despite volume running about 50% below the average daily level.
• Analysts maintain a generally positive outlook, with 15 Buy ratings, two Holds and one Sell; the stock has a consensus “Moderate Buy” rating and a $699.64 price target.
• The company beat quarterly expectations, reporting an adjusted loss of $1.99 per share versus the expected $2.68 loss, while revenue increased 71.2% year over year to $364.25 million.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL - Get Free Report)'s share price rose 7.1% during trading on Wednesday . The company traded as high as $550.33 and last traded at $548.71. 172,602 shares were traded during mid-day trading, a decline of 50% from the average daily volume of 347,942 shares. The stock had previously closed at $512.16.

Analysts Set New Price Targets

A number of analysts recently issued reports on MDGL shares. Citigroup restated an "outperform" rating on shares of Madrigal Pharmaceuticals in a research report on Friday, July 17th. UBS Group reiterated a "buy" rating on shares of Madrigal Pharmaceuticals in a research report on Friday, July 31st. Barclays reduced their target price on shares of Madrigal Pharmaceuticals from $964.00 to $962.00 and set an "overweight" rating on the stock in a research note on Monday, August 3rd. Truist Financial raised their target price on shares of Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the stock a "buy" rating in a report on Wednesday, May 13th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Madrigal Pharmaceuticals in a research note on Friday, July 17th. Fifteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Madrigal Pharmaceuticals currently has a consensus rating of "Moderate Buy" and a consensus price target of $699.64.

Madrigal Pharmaceuticals Price Performance

The company has a current ratio of 3.20, a quick ratio of 2.94 and a debt-to-equity ratio of 0.65. The stock has a market capitalization of $12.68 billion, a P/E ratio of -42.57 and a beta of -1.01. The stock has a 50 day moving average of $524.86 and a 200-day moving average of $501.54.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The biopharmaceutical company reported ($1.99) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($2.68) by $0.69. Madrigal Pharmaceuticals had a negative return on equity of 56.65% and a negative net margin of 25.32%.The company had revenue of $364.25 million during the quarter, compared to analysts' expectations of $352.13 million. During the same quarter in the previous year, the business earned ($1.90) EPS. Madrigal Pharmaceuticals's revenue was up 71.2% compared to the same quarter last year. On average, equities research analysts anticipate that Madrigal Pharmaceuticals, Inc. will post -7.03 earnings per share for the current fiscal year.

Insider Transactions at Madrigal Pharmaceuticals

In other Madrigal Pharmaceuticals news, General Counsel Shannon T. Kelley sold 664 shares of the business's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $514.97, for a total value of $341,940.08. Following the completion of the sale, the general counsel directly owned 11,474 shares of the company's stock, valued at $5,908,765.78. The trade was a 5.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David Soergel sold 1,042 shares of the company's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $495.74, for a total transaction of $516,561.08. Following the completion of the transaction, the insider owned 10,033 shares in the company, valued at $4,973,759.42. This represents a 9.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 17.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. California State Teachers Retirement System raised its position in Madrigal Pharmaceuticals by 54,067.5% during the 2nd quarter. California State Teachers Retirement System now owns 9,233,929 shares of the biopharmaceutical company's stock valued at $4,958,158,000 after purchasing an additional 9,216,882 shares in the last quarter. Janus Henderson Group PLC increased its stake in shares of Madrigal Pharmaceuticals by 27.4% during the first quarter. Janus Henderson Group PLC now owns 2,018,647 shares of the biopharmaceutical company's stock valued at $1,051,727,000 after buying an additional 433,804 shares during the period. Jupiter Topco LLC purchased a new position in shares of Madrigal Pharmaceuticals during the second quarter valued at $1,039,650,000. Paulson & CO. Inc. bought a new stake in shares of Madrigal Pharmaceuticals in the second quarter valued at about $719,524,000. Finally, BlackRock Inc. bought a new stake in shares of Madrigal Pharmaceuticals in the second quarter valued at about $644,753,000. Institutional investors own 98.50% of the company's stock.

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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