Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) announced that its Chief Financial Officer, Mardi Dier, sold 4,173 shares of the company’s stock on December 2, 2023. The shares were sold at an average price of $578.34, resulting in a total transaction value of $2,413,412.82. Following this sale, Dier now holds 10,440 shares of Madrigal, which are valued at approximately $6,037,869.60. This transaction represents a 28.56% reduction in Dier’s ownership stake in the company.
The sale was officially reported in a filing with the Securities and Exchange Commission, ensuring transparency in the transaction. Following the news, shares of Madrigal Pharmaceuticals opened at $579.89 on Thursday, reflecting a 1.2% increase from the previous day.
Company Performance and Analyst Insights
Madrigal Pharmaceuticals has a current market capitalization of $13.17 billion. Despite recent fluctuations, the company has demonstrated resilience, with a price-to-earnings ratio of -44.57 and a beta of -1.04. Over the past year, the stock has seen a significant range, with a 52-week low of $265.00 and a high of $605.00. The company’s financial health is further indicated by its debt-to-equity ratio of 0.54, quick ratio of 3.26, and current ratio of 3.44.
In its latest quarterly earnings report released on November 4, 2023, Madrigal reported earnings per share (EPS) of ($5.08), falling short of the consensus estimate of ($2.01) by ($3.07). The company has experienced a negative net margin of 39.04% and a negative return on equity of 41.50%. Analysts expect Madrigal Pharmaceuticals to post an average EPS of (–23.47) for the current year.
Analyst Ratings and Future Projections
Several financial analysts have recently updated their ratings and price targets for Madrigal Pharmaceuticals. HC Wainwright raised its price target from $568.00 to $620.00, maintaining a “buy” rating. Similarly, Bank of America upgraded its rating from “underperform” to “neutral” with a revised price target of $445.00. Truist Financial also increased its target price to $640.00, maintaining a “buy” rating.
Other notable updates include B. Riley, which lifted its price target from $460.00 to $560.00, and Cowen, which reaffirmed a “buy” rating. Currently, thirteen analysts have rated the stock as a “buy,” one has issued a “hold,” and another has given a “sell” rating. The consensus rating sits at “Moderate Buy” with an average price target of $553.50.
Madrigal Pharmaceuticals, based in the United States, focuses on developing therapeutics for non-alcoholic steatohepatitis (NASH). The company’s lead product candidate, resmetirom, is currently undergoing Phase 3 clinical trials, showcasing its commitment to addressing significant health challenges in the market.
