Madrigal Pharmaceuticals (NASDAQ:MDGL) Reaches New 12-Month Low – Time to Sell?

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)’s share price reached a new 52-week low during mid-day trading on Wednesday. The company traded as low as $367.02 and last traded at $377.30, with a volume of 152,363 shares trading hands. The stock had previously closed at $396.32.

Madrigal Pharmaceuticals News Summary

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

• Positive Sentiment: New real-world studies presented at AASLD reported improvements in liver stiffness and cardiometabolic health markers among patients treated with Rezdiffra, reinforcing evidence for the drug’s potential in MASH. Madrigal announces real-world Rezdiffra data
• Positive Sentiment: Recent coverage cited Rezdiffra sales of about $1.1 billion, pointing to meaningful commercial traction. Separately, Canaccord raised its price target to $633 and maintained a Buy rating, while HC Wainwright issued a Strong Buy rating and projected earnings growth in coming years. Canaccord analyst outlook
• Negative Sentiment: Kaplan Fox and other law firms announced investigations into possible securities-law violations related to Madrigal disclosures. The announcements may weigh on sentiment and add uncertainty, but are allegations under investigation—not findings of misconduct. Kaplan Fox investigation announcement

Analyst Ratings Changes

A number of brokerages have commented on MDGL. HC Wainwright assumed coverage on shares of Madrigal Pharmaceuticals in a research note on Wednesday. They issued a “strong-buy” rating for the company. The Goldman Sachs Group started coverage on shares of Madrigal Pharmaceuticals in a research report on Thursday, September 24th. They set a “buy” rating and a $704.00 target price on the stock. Truist Financial reaffirmed a “buy” rating and issued a $743.00 price target (up from $709.00) on shares of Madrigal Pharmaceuticals in a report on Wednesday. Citigroup increased their price target on shares of Madrigal Pharmaceuticals from $725.00 to $760.00 and gave the company a “buy” rating in a report on Tuesday. Finally, Canaccord Genuity Group lifted their price target on Madrigal Pharmaceuticals from $612.00 to $633.00 and gave the stock a “buy” rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Madrigal Pharmaceuticals currently has an average rating of “Moderate Buy” and an average price target of $706.87.

Madrigal Pharmaceuticals Price Performance

The company has a current ratio of 3.05, a quick ratio of 2.94 and a debt-to-equity ratio of 0.54. The company has a market capitalization of $8.82 billion, a PE ratio of -64.33 and a beta of -0.98. The stock’s 50-day moving average is $489.63 and its two-hundred day moving average is $497.94.

Madrigal Pharmaceuticals (NASDAQ:MDGL) last announced its earnings results on Tuesday, November 3rd. The biopharmaceutical company reported $1.83 earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.09) by $2.92. The business had revenue of $431.27 million during the quarter, compared to analyst estimates of $404.17 million. Madrigal Pharmaceuticals had a negative return on equity of 27.08% and a negative net margin of 10.89%. During the same quarter in the previous year, the business earned ($5.08) earnings per share. On average, equities analysts predict that Madrigal Pharmaceuticals, Inc. will post -6.88 EPS for the current year.

Insider Buying and Selling

In other Madrigal Pharmaceuticals news, General Counsel Shannon T. Kelley sold 664 shares of the company’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $514.97, for a total value of $341,940.08. Following the transaction, the general counsel owned 11,474 shares of the company’s stock, valued at $5,908,765.78. This represents a 5.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William Sibold sold 5,221 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $542.39, for a total value of $2,831,818.19. Following the completion of the sale, the chief executive officer owned 197,746 shares in the company, valued at approximately $107,255,452.94. The trade was a 2.57% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 12,247 shares of company stock valued at $6,581,182 over the last three months. 17.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Persistent Asset Partners Ltd bought a new stake in Madrigal Pharmaceuticals during the second quarter valued at about $29,000. Global Retirement Partners LLC purchased a new position in Madrigal Pharmaceuticals in the second quarter valued at about $34,000. Jacobi Capital Management LLC bought a new position in Madrigal Pharmaceuticals in the third quarter worth about $54,000. Provenance Wealth Advisors LLC bought a new position in Madrigal Pharmaceuticals in the third quarter worth about $69,000. Finally, Root Financial Partners LLC bought a new position in Madrigal Pharmaceuticals in the third quarter worth about $82,000. 98.50% of the stock is currently owned by institutional investors.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing medicines for nonalcoholic steatohepatitis, now known as metabolic dysfunction-associated steatohepatitis (MASH), and other chronic liver diseases. The company is headquartered in West Conshohocken, Pennsylvania.

Madrigal’s lead product is Rezdiffra (resmetirom), an orally administered thyroid hormone receptor beta agonist designed to target key drivers of liver disease, including hepatic fat accumulation and fibrosis.