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

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $546.88, but opened at $505.55. Madrigal Pharmaceuticals shares last traded at $454.0720, with a volume of 263,073 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on MDGL. Citigroup restated an “outperform” rating on shares of Madrigal Pharmaceuticals in a research note on Friday, July 17th. Piper Sandler restated an “overweight” rating on shares of Madrigal Pharmaceuticals in a research note on Wednesday, June 24th. Bank of America cut their target price on shares of Madrigal Pharmaceuticals from $550.00 to $542.00 and set a “neutral” rating on the stock in a research note on Thursday, June 11th. Truist Financial lifted their price target on Madrigal Pharmaceuticals from $640.00 to $709.00 and gave the stock a “buy” rating in a research note on Wednesday, May 13th. Finally, Wells Fargo & Company began coverage on Madrigal Pharmaceuticals in a report on Monday. They issued an “overweight” rating and a $685.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $688.33.

Madrigal Pharmaceuticals Price Performance

The firm has a market capitalization of $11.11 billion, a price-to-earnings ratio of -37.49 and a beta of -1.05. The company has a current ratio of 3.50, a quick ratio of 3.16 and a debt-to-equity ratio of 0.63. The business has a 50-day moving average price of $517.89 and a two-hundred day moving average price of $499.42.

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

Insider Activity

In related news, insider David Soergel sold 1,042 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $495.74, for a total value of $516,561.08. Following the sale, the insider owned 10,033 shares of the company’s stock, valued at $4,973,759.42. This trade represents a 9.41% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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 company’s stock in a transaction dated Friday, May 22nd. The stock was 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 of the company’s stock, valued at approximately $11,347,411.60. This trade represents a 20.51% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 7,568 shares of company stock valued at $3,880,711 in the last 90 days. Insiders own 17.60% of the company’s stock.

Hedge Funds Weigh In On Madrigal Pharmaceuticals

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Flagship Harbor Advisors LLC acquired a new stake in Madrigal Pharmaceuticals during the fourth quarter valued at approximately $29,000. Kemnay Advisory Services Inc. bought a new position in Madrigal Pharmaceuticals during the fourth quarter valued at about $39,000. Eastern Bank lifted its position in shares of Madrigal Pharmaceuticals by 32.3% in the fourth quarter. Eastern Bank now owns 86 shares of the biopharmaceutical company’s stock worth $50,000 after buying an additional 21 shares during the last quarter. Quarry LP acquired a new stake in shares of Madrigal Pharmaceuticals in the third quarter worth about $39,000. Finally, Accent Capital Management LLC boosted its stake in shares of Madrigal Pharmaceuticals by 64.9% during the 4th quarter. Accent Capital Management LLC now owns 94 shares of the biopharmaceutical company’s stock worth $55,000 after acquiring an additional 37 shares in the last quarter. 98.50% of the stock is owned by 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.