Madrigal Pharmaceuticals (NASDAQ:MDGL) Trading Down 14.4% – Here’s Why

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) shares fell 14.4% on Monday . The company traded as low as $290.00 and last traded at $290.20. 116,860 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 257,653 shares. The stock had previously closed at $338.91.

Wall Street Analysts Forecast Growth

MDGL has been the subject of a number of analyst reports. Oppenheimer cut their price target on Madrigal Pharmaceuticals from $375.00 to $350.00 and set an “outperform” rating for the company in a research note on Wednesday, October 23rd. JMP Securities reaffirmed a “market outperform” rating and set a $427.00 target price on shares of Madrigal Pharmaceuticals in a research report on Friday, January 10th. HC Wainwright increased their price target on Madrigal Pharmaceuticals from $390.00 to $400.00 and gave the company a “buy” rating in a research report on Tuesday. StockNews.com raised shares of Madrigal Pharmaceuticals to a “sell” rating in a report on Saturday, October 12th. Finally, B. Riley increased their target price on shares of Madrigal Pharmaceuticals from $194.00 to $236.00 and gave the company a “neutral” rating in a report on Tuesday, November 5th. Two analysts have rated the stock with a sell rating, two have issued a hold rating and ten have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $351.67.

Madrigal Pharmaceuticals Stock Down 9.7 %

The firm has a market capitalization of $5.98 billion, a PE ratio of -10.93 and a beta of -0.36. The stock has a 50-day simple moving average of $318.25 and a 200-day simple moving average of $272.57. The company has a quick ratio of 5.93, a current ratio of 5.98 and a debt-to-equity ratio of 0.15.

Madrigal Pharmaceuticals (NASDAQ:MDGL) last announced its quarterly earnings data on Thursday, October 31st. The biopharmaceutical company reported ($4.92) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($6.94) by $2.02. The firm had revenue of $62.18 million during the quarter, compared to the consensus estimate of $34.60 million. During the same quarter in the prior year, the firm posted ($5.34) earnings per share. Analysts forecast that Madrigal Pharmaceuticals, Inc. will post -23.77 EPS for the current year.

Insider Activity at Madrigal Pharmaceuticals

In other news, Director Richard S. Levy sold 5,000 shares of the company’s stock in a transaction dated Friday, November 1st. The stock was sold at an average price of $300.94, for a total transaction of $1,504,700.00. Following the sale, the director now directly owns 11,012 shares in the company, valued at $3,313,951.28. This represents a 31.23 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Fred B. Craves sold 3,400 shares of the firm’s stock in a transaction that occurred on Monday, November 25th. The shares were sold at an average price of $350.30, for a total transaction of $1,191,020.00. Following the completion of the transaction, the director now owns 14,600 shares of the company’s stock, valued at $5,114,380. This trade represents a 18.89 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 12,000 shares of company stock worth $3,830,836. 22.80% of the stock is owned by corporate insiders.

Institutional Trading of Madrigal Pharmaceuticals

Several institutional investors and hedge funds have recently bought and sold shares of the company. Oppenheimer Asset Management Inc. increased its holdings in shares of Madrigal Pharmaceuticals by 2.1% in the third quarter. Oppenheimer Asset Management Inc. now owns 1,507 shares of the biopharmaceutical company’s stock worth $320,000 after purchasing an additional 31 shares during the period. Victory Capital Management Inc. increased its stake in Madrigal Pharmaceuticals by 1.8% in the 3rd quarter. Victory Capital Management Inc. now owns 2,292 shares of the biopharmaceutical company’s stock worth $486,000 after acquiring an additional 40 shares during the last quarter. Nisa Investment Advisors LLC raised its stake in Madrigal Pharmaceuticals by 47.6% in the third quarter. Nisa Investment Advisors LLC now owns 211 shares of the biopharmaceutical company’s stock valued at $45,000 after purchasing an additional 68 shares in the last quarter. Creative Planning increased its holdings in shares of Madrigal Pharmaceuticals by 2.7% in the 3rd quarter. Creative Planning now owns 3,299 shares of the biopharmaceutical company’s stock worth $700,000 after buying an additional 87 shares during the last quarter. Finally, Verity Asset Management Inc. raised its position in shares of Madrigal Pharmaceuticals by 7.4% during the 3rd quarter. Verity Asset Management Inc. now owns 1,466 shares of the biopharmaceutical company’s stock valued at $311,000 after buying an additional 101 shares in the last quarter. 98.50% of the stock is currently owned by hedge funds and other institutional investors.

Madrigal Pharmaceuticals Company Profile

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.