Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) has received a consensus rating of “Moderate Buy” from analysts following the company, according to Marketbeat.com. Out of the fifteen ratings firms that cover the firm, twelve have assigned a buy rating, one has rated it as a strong buy, one has issued a hold rating, and one analyst has given it a sell rating. The average price target over the next year is estimated at $624.08.
Several research firms have recently adjusted their outlook on Madrigal Pharmaceuticals. On November 3, 2023, Bank of America upgraded the company from an “underperform” rating to “neutral,” increasing its target price from $266.00 to $445.00. Just two days later, on November 5, 2023, Citizens JMP raised its price objective from $485.00 to $527.00, designating the stock as “market outperform.”
Recent Upgrades and Investment Activity
In a significant move, HC Wainwright increased its target price for Madrigal Pharmaceuticals from $568.00 to $620.00, maintaining a “buy” rating on November 21, 2023. Similarly, Truist Financial raised its price target from $580.00 to $640.00 on the same day. Furthermore, on December 11, 2023, B. Riley revised its price objective upwards from $560.00 to $670.00, with a “buy” recommendation.
Institutional investors have shown increased interest in Madrigal Pharmaceuticals recently. Wellington Management Group LLP dramatically raised its holdings by 5,381.2% in the third quarter, resulting in ownership of 404,455 shares valued at approximately $185.5 million. Adage Capital Partners GP L.L.C. also increased its stake by 96.3% during the second quarter, bringing its total to 376,163 shares valued at $113.8 million. Another notable investment came from Norges Bank, which acquired a new stake valued at $53.4 million.
As of now, institutional investors own 98.5% of Madrigal Pharmaceuticals’ stock, highlighting strong confidence in the company’s future.
Company Performance and Financials
On Tuesday, November 4, 2023, Madrigal Pharmaceuticals reported earnings that fell short of expectations, with a loss of $5.08 per share against a consensus estimate of ($2.01) per share. The company currently holds a market capitalization of $13.39 billion and has a price-to-earnings (P/E) ratio of -45.31.
Madrigal Pharmaceuticals has a 12-month low of $265.00 and a high of $615.00. As of Tuesday, shares opened at $589.47, reflecting investor sentiment amid the recent rating upgrades. The company has a current ratio of 3.44 and a quick ratio of 3.26, along with a debt-to-equity ratio of 0.54.
The firm is concentrating on developing innovative therapies for cardiovascular, metabolic, and liver diseases, particularly focusing on nonalcoholic steatohepatitis (NASH). Its lead candidate, resmetirom (MGL-3196), is currently in Phase 3 development and aims to address significant unmet medical needs in this area.
As Madrigal Pharmaceuticals continues to navigate its clinical trials and market position, its recent ratings and institutional investments suggest a positive outlook for the company. Investors will be watching closely for future developments as the firm works towards bringing its promising therapies to market.
