Weiss Ratings Reiterates "Sell (D-)" Rating for Madrigal Pharmaceuticals (NASDAQ:MDGL)

Key Points

• Weiss Ratings has reaffirmed a "Sell (D-)" rating for Madrigal Pharmaceuticals (NASDAQ:MDGL), signaling caution for potential investors.
• Despite the "Sell" rating from Weiss, there are several "Buy" ratings from other analysts, with Cowen notably raising their price target to $554.00.
• Madrigal Pharmaceuticals reported a significant 1357.5% increase in revenue year-over-year, indicating potential for growth despite negative earnings.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report)'s stock had its "sell (d-)" rating reaffirmed by analysts at Weiss Ratings in a research note issued to investors on Wednesday,Weiss Ratings reports.

Several other analysts have also issued reports on MDGL. Cowen reiterated a "buy" rating on shares of Madrigal Pharmaceuticals in a research report on Tuesday, August 26th. TD Cowen raised their price target on shares of Madrigal Pharmaceuticals from $390.00 to $554.00 and gave the stock a "buy" rating in a research note on Tuesday, August 26th. UBS Group reissued a "buy" rating and issued a $523.00 price target (up from $458.00) on shares of Madrigal Pharmaceuticals in a research note on Tuesday, August 12th. JMP Securities raised their price target on shares of Madrigal Pharmaceuticals from $483.00 to $485.00 and gave the stock a "market outperform" rating in a research note on Wednesday, August 20th. Finally, B. Riley raised their price target on shares of Madrigal Pharmaceuticals from $460.00 to $560.00 and gave the stock a "buy" rating in a research note on Monday, September 29th. Nine research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $495.88.

Madrigal Pharmaceuticals Stock Up 0.2%

Shares of NASDAQ MDGL opened at $436.95 on Wednesday. The company's 50-day simple moving average is $409.43 and its 200-day simple moving average is $339.54. Madrigal Pharmaceuticals has a 52-week low of $200.63 and a 52-week high of $463.63. The firm has a market cap of $9.70 billion, a price-to-earnings ratio of -34.00 and a beta of -1.02. The company has a quick ratio of 4.78, a current ratio of 5.11 and a debt-to-equity ratio of 0.17.

Madrigal Pharmaceuticals (NASDAQ:MDGL - Get Free Report) last announced 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 analyst estimates of $158.94 million. During the same quarter last year, the business earned ($7.10) earnings per share. The company's revenue for the quarter was up 1357.5% compared to the same quarter last year. Equities analysts predict that Madrigal Pharmaceuticals will post -23.47 EPS for the current fiscal year.

Insider Activity at Madrigal Pharmaceuticals

In other news, Director Bros. Advisors Lp Baker bought 68,618 shares of Madrigal Pharmaceuticals stock in a transaction on Monday, August 18th. The shares were bought at an average cost of $364.04 per share, with a total value of $24,979,696.72. Following the completion of the purchase, the director directly owned 1,859,091 shares of the company's stock, valued at approximately $676,783,487.64. This trade represents a 3.83% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Kenneth Bate sold 10,000 shares of Madrigal Pharmaceuticals stock in a transaction dated Friday, August 15th. The stock was 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 trade represents a 79.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders bought 165,683 shares of company stock valued at $61,921,142 and sold 309,019 shares valued at $112,705,072. 21.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

Institutional investors have recently bought and sold shares of the company. VSM Wealth Advisory LLC purchased a new position in Madrigal Pharmaceuticals during the first quarter worth about $25,000. Accent Capital Management LLC acquired a new stake in shares of Madrigal Pharmaceuticals during the first quarter valued at about $25,000. AlphaQuest LLC increased its position in shares of Madrigal Pharmaceuticals by 412.5% during the second quarter. AlphaQuest LLC now owns 82 shares of the biopharmaceutical company's stock valued at $25,000 after acquiring an additional 66 shares during the last quarter. GAMMA Investing LLC increased its position in shares of Madrigal Pharmaceuticals by 114.3% during the third quarter. GAMMA Investing LLC now owns 90 shares of the biopharmaceutical company's stock valued at $41,000 after acquiring an additional 48 shares during the last quarter. Finally, Summit Securities Group LLC acquired a new stake in shares of Madrigal Pharmaceuticals during the first quarter valued at about $33,000. 98.50% of the stock is owned by hedge funds and other institutional investors.

Madrigal Pharmaceuticals Company Profile

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.

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