Madrigal Pharmaceuticals (NASDAQ:MDGL) Raised to Outperform at Wolfe Research

Madrigal Pharmaceuticals (NASDAQ:MDGL) was upgraded by Wolfe Research from a “peer perform” rating to an “outperform” rating in a research note issued to investors on Tuesday, Marketbeat reports. The brokerage presently has a $605.00 price objective on the biopharmaceutical company’s stock. Wolfe Research’s target price suggests a potential upside of 25.52% from the stock’s current price.

Other research analysts also recently issued research reports about the company. Truist Financial increased their price objective on Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Citigroup restated an “outperform” rating on shares of Madrigal Pharmaceuticals in a research note on Friday, July 17th. UBS Group reiterated a “buy” rating on shares of Madrigal Pharmaceuticals in a research note on Friday. Bank of America cut their price objective on shares of Madrigal Pharmaceuticals from $550.00 to $542.00 and set a “neutral” rating on the stock in a report on Thursday, June 11th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Madrigal Pharmaceuticals in a research report on Friday, July 17th. Fifteen investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Madrigal Pharmaceuticals presently has a consensus rating of “Moderate Buy” and a consensus price target of $689.93.

Madrigal Pharmaceuticals Price Performance

Madrigal Pharmaceuticals stock opened at $482.00 on Tuesday. The stock has a market cap of $11.13 billion, a P/E ratio of -37.39 and a beta of -1.01. The company has a fifty day simple moving average of $515.78 and a 200-day simple moving average of $498.88. Madrigal Pharmaceuticals has a 12-month low of $299.17 and a 12-month high of $615.00. The company has a current ratio of 3.20, a quick ratio of 2.94 and a debt-to-equity ratio of 0.65.

Madrigal Pharmaceuticals (NASDAQ:MDGL) last posted its quarterly earnings results on Thursday, July 30th. The biopharmaceutical company reported ($1.99) earnings per share for the quarter, beating analysts’ consensus estimates of ($2.68) by $0.69. The company had revenue of $364.25 million for the quarter, compared to analysts’ expectations of $352.13 million. Madrigal Pharmaceuticals had a negative return on equity of 56.65% and a negative net margin of 25.32%.Madrigal Pharmaceuticals’s quarterly revenue was up 71.2% on a year-over-year basis. During the same period last year, the firm earned ($1.90) earnings per share. Equities analysts expect that Madrigal Pharmaceuticals will post -7.47 EPS for the current fiscal year.

Insider Activity

In related news, 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 value of $516,561.08. Following the completion of the sale, the insider directly owned 10,033 shares of the company’s stock, valued at $4,973,759.42. This represents a 9.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Richard S. Levy sold 5,682 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $515.44, for a total value of $2,928,730.08. Following the transaction, the director owned 22,015 shares in the company, valued at $11,347,411.60. This represents a 20.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 7,568 shares of company stock valued at $3,880,711 over the last three months. Company insiders own 17.60% of the company’s stock.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

A number of hedge funds have recently modified their holdings of the business. Janus Henderson Group PLC boosted its holdings in shares of Madrigal Pharmaceuticals by 27.4% in 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 acquiring an additional 433,804 shares in the last quarter. Wellington Management Group LLP boosted its holdings in Madrigal Pharmaceuticals by 5,381.2% in the 3rd quarter. Wellington Management Group LLP now owns 404,455 shares of the biopharmaceutical company’s stock valued at $185,507,000 after purchasing an additional 397,076 shares in the last quarter. Norges Bank acquired a new position in Madrigal Pharmaceuticals during the 4th quarter worth approximately $114,368,000. Deutsche Bank AG increased its position in Madrigal Pharmaceuticals by 414.5% during 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 shares of Madrigal Pharmaceuticals by 139.7% during the 4th quarter. Lord Abbett & CO. LLC now owns 244,796 shares of the biopharmaceutical company’s stock worth $142,555,000 after buying an additional 142,653 shares in the last quarter. 98.50% of the stock is currently owned by hedge funds and other institutional investors.

About Madrigal Pharmaceuticals

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.