Madrigal Pharmaceuticals (NASDAQ:MDGL) Shares Gap Down After Earnings Miss

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)’s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $491.49, but opened at $452.02. Madrigal Pharmaceuticals shares last traded at $450.3060, with a volume of 428,933 shares changing hands.

The biopharmaceutical company reported ($2.57) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($2.56). Madrigal Pharmaceuticals had a negative net margin of 39.04% and a negative return on equity of 41.50%. The company had revenue of $321.08 million during the quarter, compared to analysts’ expectations of $310.36 million. During the same period last year, the firm earned ($2.71) earnings per share. Madrigal Pharmaceuticals’s quarterly revenue was up 210.8% on a year-over-year basis.

Analysts Set New Price Targets

A number of equities research analysts have commented on MDGL shares. HC Wainwright increased their price target on Madrigal Pharmaceuticals from $568.00 to $620.00 and gave the company a “buy” rating in a research note on Friday, November 21st. The Goldman Sachs Group reissued a “buy” rating and set a $571.00 price objective on shares of Madrigal Pharmaceuticals in a report on Wednesday, January 14th. Oppenheimer raised their target price on Madrigal Pharmaceuticals from $600.00 to $650.00 and gave the stock an “outperform” rating in a research note on Thursday, November 20th. Canaccord Genuity Group increased their price objective on Madrigal Pharmaceuticals from $526.00 to $587.00 and gave the company a “buy” rating in a report on Thursday, November 13th. Finally, Piper Sandler upped their target price on Madrigal Pharmaceuticals from $540.00 to $900.00 and gave the company an “overweight” rating in a research report on Friday, December 19th. One equities 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 given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $663.86.

Insiders Place Their Bets

In other news, insider Carole Huntsman sold 910 shares of Madrigal Pharmaceuticals stock in a transaction on Monday, January 26th. The stock was sold at an average price of $493.78, for a total transaction of $449,339.80. Following the transaction, the insider owned 9,122 shares in the company, valued at $4,504,261.16. The trade was a 9.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO William John Sibold sold 1,577 shares of the company’s stock in a transaction dated Monday, January 26th. The shares were sold at an average price of $492.42, for a total transaction of $776,546.34. Following the completion of the sale, the chief executive officer directly owned 148,497 shares of the company’s stock, valued at $73,122,892.74. This represents a 1.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 101,495 shares of company stock valued at $54,568,691. Insiders own 21.50% of the company’s stock.

Institutional Trading of Madrigal Pharmaceuticals

Several institutional investors have recently made changes to their positions in the company. Baker BROS. Advisors LP lifted its position in Madrigal Pharmaceuticals by 8.4% in the third quarter. Baker BROS. Advisors LP now owns 2,141,701 shares of the biopharmaceutical company’s stock valued at $982,313,000 after buying an additional 165,683 shares during the last quarter. Wellington Management Group LLP grew its stake in Madrigal Pharmaceuticals by 14.1% during the 4th quarter. Wellington Management Group LLP now owns 461,402 shares of the biopharmaceutical company’s stock worth $268,693,000 after purchasing an additional 56,947 shares in the last quarter. Geode Capital Management LLC increased its holdings in Madrigal Pharmaceuticals by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 451,743 shares of the biopharmaceutical company’s stock worth $263,114,000 after purchasing an additional 5,510 shares during the period. William Blair Investment Management LLC raised its holdings in Madrigal Pharmaceuticals by 17.6% in the third quarter. William Blair Investment Management LLC now owns 411,802 shares of the biopharmaceutical company’s stock valued at $188,877,000 after acquiring an additional 61,513 shares in the last quarter. Finally, Adage Capital Partners GP L.L.C. raised its holdings in shares of Madrigal Pharmaceuticals by 96.3% in the 2nd quarter. Adage Capital Partners GP L.L.C. now owns 376,163 shares of the biopharmaceutical company’s stock valued at $113,842,000 after purchasing an additional 184,554 shares in the last quarter. Hedge funds and other institutional investors own 98.50% of the company’s stock.

Madrigal Pharmaceuticals Price Performance

The stock has a fifty day simple moving average of $527.03 and a 200-day simple moving average of $480.76. The company has a current ratio of 3.44, a quick ratio of 3.26 and a debt-to-equity ratio of 0.54. The company has a market capitalization of $10.40 billion, a PE ratio of -35.14, a P/E/G ratio of 6.92 and a beta of -1.01.

Madrigal Pharmaceuticals Company Profile

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.