Madrigal Pharmaceuticals (NASDAQ:MDGL) Releases Earnings Results, Misses Estimates By $3.07 EPS

Madrigal Pharmaceuticals (NASDAQ:MDGL) issued its earnings results on Tuesday. The biopharmaceutical company reported ($5.08) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($2.01) by ($3.07), Zacks reports. The company had revenue of $287.27 million during the quarter, compared to analyst estimates of $244.33 million. Madrigal Pharmaceuticals had a negative return on equity of 38.38% and a negative net margin of 54.68%.

Madrigal Pharmaceuticals Stock Performance

Shares of NASDAQ MDGL traded up $36.20 during trading hours on Tuesday, hitting $448.55. 710,202 shares of the company’s stock were exchanged, compared to its average volume of 368,616. Madrigal Pharmaceuticals has a 1-year low of $265.00 and a 1-year high of $464.98. The company has a debt-to-equity ratio of 0.17, a current ratio of 5.11 and a quick ratio of 4.78. The stock has a market capitalization of $9.96 billion, a price-to-earnings ratio of -34.81 and a beta of -1.02. The company’s 50-day moving average price is $433.67 and its 200-day moving average price is $353.56.

Insider Buying and Selling

In related news, Director Bros. Advisors Lp Baker purchased 68,618 shares of the stock in a transaction dated Monday, August 18th. The stock was bought at an average cost of $364.04 per share, for a total transaction of $24,979,696.72. Following the completion of the acquisition, the director owned 1,859,091 shares of the company’s stock, valued at approximately $676,783,487.64. This represents a 3.83% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Rebecca Taub sold 43,263 shares of the company’s stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $355.69, for a total transaction of $15,388,216.47. Following the transaction, the director owned 461,044 shares of the company’s stock, valued at $163,988,740.36. This trade represents a 8.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have purchased 165,683 shares of company stock worth $61,921,142 and have sold 248,642 shares worth $91,388,103. 21.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Kestra Investment Management LLC acquired a new position in shares of Madrigal Pharmaceuticals during the second quarter worth $85,000. Hsbc Holdings PLC acquired a new stake in Madrigal Pharmaceuticals in the second quarter valued at $309,000. Brevan Howard Capital Management LP acquired a new stake in Madrigal Pharmaceuticals in the second quarter valued at $353,000. Man Group plc acquired a new stake in Madrigal Pharmaceuticals in the second quarter valued at $414,000. Finally, Bayesian Capital Management LP acquired a new stake in Madrigal Pharmaceuticals in the second quarter valued at $418,000. 98.50% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Madrigal Pharmaceuticals in a report on Wednesday, October 8th. TD Cowen lifted their target price on Madrigal Pharmaceuticals from $390.00 to $554.00 and gave the stock a “buy” rating in a report on Tuesday, August 26th. Oppenheimer lifted their target price on Madrigal Pharmaceuticals from $500.00 to $590.00 and gave the stock an “outperform” rating in a report on Friday, October 10th. HC Wainwright initiated coverage on Madrigal Pharmaceuticals in a research report on Thursday, September 4th. They issued a “buy” rating and a $500.00 target price for the company. Finally, Piper Sandler raised their target price on Madrigal Pharmaceuticals from $400.00 to $540.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 15th. Eleven research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $524.73.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc, a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment of non-alcoholic steatohepatitis (NASH) in the United States. Its lead product candidate is resmetirom, a liver-directed thyroid hormone receptor beta agonist, which is in Phase 3 clinical trials for treating NASH.