Madrigal Pharmaceuticals (NASDAQ:MDGL) Trading 11.7% Higher – Should You Buy?

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) shares shot up 11.7% during trading on Thursday . The company traded as high as $572.20 and last traded at $515.9930. 674,300 shares changed hands during trading, an increase of 91% from the average session volume of 353,417 shares. The stock had previously closed at $461.93.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on MDGL shares. Barclays initiated coverage on Madrigal Pharmaceuticals in a research report on Tuesday, January 27th. They issued an “overweight” rating and a $964.00 price target for the company. TD Cowen reissued a “buy” rating on shares of Madrigal Pharmaceuticals in a research note on Monday, January 12th. Zacks Research upgraded Madrigal Pharmaceuticals from a “strong sell” rating to a “hold” rating in a report on Friday, February 20th. Piper Sandler upped their price objective on shares of Madrigal Pharmaceuticals from $540.00 to $900.00 and gave the stock an “overweight” rating in a report on Friday, December 19th. Finally, Citigroup restated an “outperform” rating on shares of Madrigal Pharmaceuticals in a research note on Tuesday, January 20th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $685.31.

Madrigal Pharmaceuticals Price Performance

The company has a debt-to-equity ratio of 0.56, a quick ratio of 3.77 and a current ratio of 4.01. The stock’s 50-day moving average is $463.40 and its two-hundred day moving average is $489.10. The stock has a market cap of $11.83 billion, a PE ratio of -40.08 and a beta of -0.97.

Madrigal Pharmaceuticals (NASDAQ:MDGL) last announced its quarterly earnings data on Thursday, February 19th. The biopharmaceutical company reported ($2.57) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($2.61). The company had revenue of $321.08 million during the quarter, compared to analyst estimates of $310.36 million. Madrigal Pharmaceuticals had a negative net margin of 30.08% and a negative return on equity of 43.76%. The firm’s revenue was up 210.8% on a year-over-year basis. During the same quarter in the previous year, the business posted ($2.71) earnings per share. On average, equities analysts predict that Madrigal Pharmaceuticals, Inc. will post -23.47 earnings per share for the current year.

Insider Activity

In related news, Director Rebecca Taub sold 491 shares of the firm’s stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $431.94, for a total transaction of $212,082.54. Following the transaction, the director owned 452,213 shares in the company, valued at $195,328,883.22. This trade represents a 0.11% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Carole Huntsman sold 419 shares of the firm’s stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $431.94, for a total transaction of $180,982.86. Following the transaction, the insider owned 12,692 shares in the company, valued at approximately $5,482,182.48. This trade represents a 3.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 55,612 shares of company stock worth $28,326,065 over the last three months. Company insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of MDGL. Flagship Harbor Advisors LLC acquired a new position in Madrigal Pharmaceuticals in the 4th quarter worth about $29,000. Mather Group LLC. bought a new position in Madrigal Pharmaceuticals during the 3rd quarter valued at $33,000. Global Retirement Partners LLC boosted its holdings in Madrigal Pharmaceuticals by 221.7% during the 3rd quarter. Global Retirement Partners LLC now owns 74 shares of the biopharmaceutical company’s stock worth $34,000 after acquiring an additional 51 shares during the last quarter. First Horizon Corp bought a new stake in shares of Madrigal Pharmaceuticals in the 3rd quarter worth $34,000. Finally, Aventura Private Wealth LLC bought a new stake in shares of Madrigal Pharmaceuticals in the 4th quarter worth $36,000. 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.