Madrigal Pharmaceuticals (NASDAQ:MDGL) Shares Down 5.1% – Here’s Why

Shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) fell 5.1% during trading on Friday . The stock traded as low as $472.01 and last traded at $472.42. 92,006 shares were traded during trading, a decline of 73% from the average session volume of 340,505 shares. The stock had previously closed at $498.04.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. Truist Financial upped their target price on shares of Madrigal Pharmaceuticals from $580.00 to $640.00 and gave the stock a “buy” rating in a research note on Wednesday, November 19th. B. Riley boosted their price objective on shares of Madrigal Pharmaceuticals from $560.00 to $670.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. Cantor Fitzgerald upgraded Madrigal Pharmaceuticals from a “neutral” rating to an “overweight” rating in a research note on Tuesday, November 4th. Wolfe Research set a $579.00 target price on Madrigal Pharmaceuticals in a report on Tuesday, January 6th. Finally, TD Cowen reaffirmed a “buy” rating on shares of Madrigal Pharmaceuticals in a report on Monday, January 12th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Madrigal Pharmaceuticals has an average rating of “Moderate Buy” and an average price target of $632.64.

Madrigal Pharmaceuticals Price Performance

The stock has a market capitalization of $10.91 billion, a P/E ratio of -36.93, a PEG ratio of 4.66 and a beta of -1.00. The company has a debt-to-equity ratio of 0.54, a quick ratio of 3.26 and a current ratio of 3.44. The firm has a fifty day moving average price of $559.15 and a two-hundred day moving average price of $459.28.

Madrigal Pharmaceuticals (NASDAQ:MDGL) last posted its quarterly earnings data on Tuesday, November 4th. The biopharmaceutical company reported ($5.08) EPS for the quarter, missing analysts’ consensus estimates of ($2.01) by ($3.07). Madrigal Pharmaceuticals had a negative net margin of 39.04% and a negative return on equity of 41.50%. As a group, analysts expect that Madrigal Pharmaceuticals, Inc. will post -23.47 EPS for the current fiscal year.

Insider Transactions at Madrigal Pharmaceuticals

In related news, Director Kenneth Bate sold 16,575 shares of the firm’s stock in a transaction that occurred on Wednesday, November 5th. The shares were sold at an average price of $484.30, for a total value of $8,027,272.50. Following the transaction, the director owned 2,627 shares of the company’s stock, valued at approximately $1,272,256.10. This trade represents a 86.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Paul A. Friedman sold 24,800 shares of the company’s stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $552.18, for a total transaction of $13,694,064.00. Following the sale, the director directly owned 187,164 shares of the company’s stock, valued at approximately $103,348,217.52. This represents a 11.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 123,436 shares of company stock worth $65,479,642. 21.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

Institutional investors and hedge funds have recently bought and sold shares of the stock. Teacher Retirement System of Texas grew its holdings in Madrigal Pharmaceuticals by 9.6% during the 2nd quarter. Teacher Retirement System of Texas now owns 3,860 shares of the biopharmaceutical company’s stock valued at $1,168,000 after buying an additional 338 shares in the last quarter. Voya Investment Management LLC boosted its position in shares of Madrigal Pharmaceuticals by 16.3% during the 3rd quarter. Voya Investment Management LLC now owns 59,437 shares of the biopharmaceutical company’s stock valued at $27,261,000 after acquiring an additional 8,347 shares during the last quarter. Marex Group plc purchased a new position in shares of Madrigal Pharmaceuticals in the second quarter valued at $548,000. Calamos Advisors LLC bought a new stake in Madrigal Pharmaceuticals in the third quarter worth $2,057,000. Finally, Gladstone Institutional Advisory LLC purchased a new stake in Madrigal Pharmaceuticals during the third quarter valued at $501,000. 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.