TD Cowen Forecasts Strong Price Appreciation for Madrigal Pharmaceuticals (NASDAQ:MDGL) Stock

Key Points

• TD Cowen has raised its target price for Madrigal Pharmaceuticals (NASDAQ:MDGL) from $390.00 to $554.00, indicating a potential upside of 34.39% from the current price.
• Eight research analysts currently rate Madrigal Pharmaceuticals as a "Buy," while one firm has assigned a "Hold" rating, reflecting strong confidence in the company's stock.
• Madrigal Pharmaceuticals reported a remarkable 1357.5% increase in quarterly revenue year-over-year, beating analyst estimates with a revenue of $212.80 million.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Free Report) had its target price raised by TD Cowen from $390.00 to $554.00 in a report issued on Tuesday morning,Benzinga reports. The brokerage currently has a buy rating on the biopharmaceutical company's stock.

Other equities research analysts have also recently issued research reports about the stock. Canaccord Genuity Group raised their target price on shares of Madrigal Pharmaceuticals from $420.00 to $428.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Wall Street Zen upgraded Madrigal Pharmaceuticals from a "sell" rating to a "hold" rating in a research note on Monday, May 5th. UBS Group reaffirmed a "buy" rating and issued a $523.00 price objective (up previously from $458.00) on shares of Madrigal Pharmaceuticals in a report on Tuesday, August 12th. B. Riley reissued a "buy" rating and issued a $460.00 target price (up previously from $422.00) on shares of Madrigal Pharmaceuticals in a report on Friday, May 2nd. Finally, JMP Securities raised their target price on Madrigal Pharmaceuticals from $483.00 to $485.00 and gave the stock a "market outperform" rating in a research report on Wednesday, August 20th. Nine analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, Madrigal Pharmaceuticals has a consensus rating of "Moderate Buy" and an average price target of $459.25.

Madrigal Pharmaceuticals Stock Performance

NASDAQ MDGL traded up $12.11 during trading hours on Tuesday, hitting $437.17. The company's stock had a trading volume of 288,114 shares, compared to its average volume of 468,894. Madrigal Pharmaceuticals has a 12 month low of $200.63 and a 12 month high of $438.30. The company's 50 day simple moving average is $332.43 and its two-hundred day simple moving average is $319.22. The company has a debt-to-equity ratio of 0.17, a current ratio of 5.11 and a quick ratio of 4.78. The company has a market cap of $9.71 billion, a P/E ratio of -34.02 and a beta of -1.02.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last posted its earnings results on Tuesday, August 5th. The biopharmaceutical company reported ($1.90) earnings per share (EPS) for the quarter, beating the consensus estimate of ($3.48) by $1.58. Madrigal Pharmaceuticals had a negative net margin of 54.68% and a negative return on equity of 38.38%. The business had revenue of $212.80 million for the quarter, compared to analysts' expectations of $158.94 million. During the same quarter in the prior year, the business earned ($7.10) EPS. The business's revenue for the quarter was up 1357.5% compared to the same quarter last year. As a group, sell-side analysts expect that Madrigal Pharmaceuticals will post -23.47 EPS for the current fiscal year.

Insider Transactions at Madrigal Pharmaceuticals

In other Madrigal Pharmaceuticals news, CEO William John Sibold sold 7,616 shares of the firm's stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $400.18, for a total transaction of $3,047,770.88. Following the sale, the chief executive officer owned 109,753 shares in the company, valued at approximately $43,920,955.54. This trade represents a 6.49% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Kenneth Bate sold 10,000 shares of Madrigal Pharmaceuticals stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $365.20, for a total transaction of $3,652,000.00. Following the transaction, the director directly owned 2,627 shares in the company, valued at $959,380.40. This represents a 79.20% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have purchased 165,683 shares of company stock valued at $61,921,142 and have sold 301,740 shares valued at $109,461,331. 21.50% of the stock is owned by corporate insiders.

Institutional Trading of Madrigal Pharmaceuticals

Several institutional investors and hedge funds have recently modified their holdings of MDGL. China Universal Asset Management Co. Ltd. grew its position in shares of Madrigal Pharmaceuticals by 0.7% during the second quarter. China Universal Asset Management Co. Ltd. now owns 4,459 shares of the biopharmaceutical company's stock worth $1,349,000 after purchasing an additional 30 shares in the last quarter. Orion Porfolio Solutions LLC boosted its stake in Madrigal Pharmaceuticals by 1.3% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 3,638 shares of the biopharmaceutical company's stock worth $1,101,000 after purchasing an additional 47 shares during the period. Marex Group plc bought a new position in Madrigal Pharmaceuticals in the 2nd quarter worth approximately $548,000. Kestra Investment Management LLC purchased a new stake in Madrigal Pharmaceuticals during the 2nd quarter valued at approximately $85,000. Finally, Tower Research Capital LLC TRC raised its position in shares of Madrigal Pharmaceuticals by 70.3% during the second quarter. Tower Research Capital LLC TRC now owns 1,851 shares of the biopharmaceutical company's stock valued at $560,000 after buying an additional 764 shares during the last quarter. 98.50% of the stock is currently owned by institutional investors.

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.