Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) Sees Significant Decline in Short Interest

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) saw a large drop in short interest in the month of July. As of July 15th, there was short interest totaling 2,062,862 shares, a drop of 41.5% from the June 30th total of 3,526,539 shares. Currently, 10.9% of the company’s shares are short sold. Based on an average daily volume of 297,279 shares, the days-to-cover ratio is presently 6.9 days.

Insider Activity

In related news, insider David Soergel sold 1,042 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $495.74, for a total value of $516,561.08. Following the transaction, the insider owned 10,033 shares in the company, valued at approximately $4,973,759.42. This trade represents a 9.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible 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 shares were sold at an average price of $515.44, for a total transaction of $2,928,730.08. Following the completion of the transaction, the director owned 22,015 shares in the company, valued at $11,347,411.60. The trade was a 20.51% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 7,568 shares of company stock worth $3,880,711 over the last ninety days. Corporate insiders own 17.60% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of MDGL. Toth Financial Advisory Corp bought a new stake in shares of Madrigal Pharmaceuticals in the fourth quarter worth $1,165,000. Capricorn Fund Managers Ltd bought a new position in Madrigal Pharmaceuticals during the 4th quarter valued at $3,843,000. Jefferies Financial Group Inc. acquired a new position in Madrigal Pharmaceuticals during the 4th quarter worth $1,339,000. Penn Capital Management Company LLC bought a new stake in shares of Madrigal Pharmaceuticals in the 4th quarter worth about $1,719,000. Finally, Lord Abbett & CO. LLC increased its position in shares of Madrigal Pharmaceuticals by 139.7% in the 4th quarter. Lord Abbett & CO. LLC now owns 244,796 shares of the biopharmaceutical company’s stock worth $142,555,000 after purchasing an additional 142,653 shares during the last quarter. Hedge funds and other institutional investors own 98.50% of the company’s stock.

Trending Headlines about Madrigal Pharmaceuticals

Here are the key news stories impacting Madrigal Pharmaceuticals this week:

• Positive Sentiment: Madrigal reported second-quarter revenue of $364.25 million, exceeding the approximately $352 million analyst consensus and increasing 71.2% from the prior-year period. Madrigal Q2 Earnings Snapshot
• Positive Sentiment: The company’s quarterly loss of $1.99 per share was narrower than analyst expectations, with estimates ranging from approximately $2.55 to $2.68 per share in losses. Madrigal Reports Q2 Loss, Beats Revenue Estimates
• Positive Sentiment: Wells Fargo analysts awarded MDGL an Overweight rating, providing additional support for the investment case. Madrigal Earns Overweight Rating
• Neutral Sentiment: Management’s earnings presentation and conference call provided further corporate and operational updates, but the company remains focused on commercial execution and advancing its MASH-focused therapeutic strategy. Q2 2026 Earnings Call Transcript
• Negative Sentiment: Despite the revenue growth, Madrigal remains unprofitable: its net margin was negative 27.32%, and the quarterly loss widened from $1.90 per share a year earlier. Analysts still expect a full-year loss, which may be weighing on the stock after its substantial prior run-up. Madrigal Second-Quarter 2026 Results

Madrigal Pharmaceuticals Stock Down 6.3%

Shares of MDGL stock traded down $30.98 on Friday, hitting $462.13. The stock had a trading volume of 470,893 shares, compared to its average volume of 352,722. The stock’s 50 day moving average is $517.48 and its 200-day moving average is $499.27. The firm has a market capitalization of $10.66 billion, a price-to-earnings ratio of -36.14 and a beta of -1.05. Madrigal Pharmaceuticals has a 52-week low of $290.00 and a 52-week high of $615.00. The company has a debt-to-equity ratio of 0.63, a quick ratio of 3.16 and a current ratio of 3.50.

Madrigal Pharmaceuticals (NASDAQ:MDGL) last released its quarterly earnings results on Thursday, July 30th. The biopharmaceutical company reported ($1.99) earnings per share (EPS) for the quarter, topping the consensus estimate of ($2.68) by $0.69. The firm had revenue of $364.25 million for the quarter, compared to the consensus estimate of $352.13 million. Madrigal Pharmaceuticals had a negative net margin of 27.32% and a negative return on equity of 50.15%. The firm’s quarterly revenue was up 71.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($1.90) EPS. As a group, research analysts expect that Madrigal Pharmaceuticals will post -7.45 earnings per share for the current year.

Wall Street Analysts Forecast Growth

MDGL has been the subject of several recent research reports. Canaccord Genuity Group increased their price objective on shares of Madrigal Pharmaceuticals from $578.00 to $587.00 and gave the stock a “buy” rating in a research report on Wednesday. Truist Financial upped their price target on shares of Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the stock a “buy” rating in a research report on Wednesday, May 13th. Piper Sandler reiterated an “overweight” rating on shares of Madrigal Pharmaceuticals in a report on Wednesday, June 24th. Barclays set a $962.00 price target on Madrigal Pharmaceuticals in a report on Friday. Finally, UBS Group restated a “buy” rating on shares of Madrigal Pharmaceuticals in a research note on Friday. Fourteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $688.20.

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.