Shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) reached a new 52-week high on November 4, 2023, following an upgrade from HC Wainwright, which raised its price target from $568.00 to $620.00. The stock peaked at $579.99 during trading before closing at $576.65 with a trading volume of 458,462 shares, up from a previous close of $547.96.
Analysts’ interest in Madrigal has been notable, with several firms adjusting their price targets. TD Cowen raised its target from $390.00 to $554.00, maintaining a “buy” rating in a report released on August 26, 2023. Similarly, B. Riley elevated its target from $460.00 to $560.00, also assigning a “buy” rating on September 29, 2023. Citigroup and UBS Group reiterated their “outperform” and “buy” ratings, respectively, with UBS increasing its target price to $523.00 from $458.00.
Market Consensus and Institutional Investment
Currently, thirteen equities research analysts have rated Madrigal with a “buy,” while one has given a “hold” rating and another a “sell” rating. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $553.50.
Institutional investors hold a significant portion of Madrigal’s stock, owning 98.50% of the company’s shares. The Teacher Retirement System of Texas increased its position by 9.6% in the second quarter, now owning 3,860 shares valued at approximately $1.17 million. Other institutional players, such as XTX Topco Ltd and Rhumbline Advisers, have also expanded their stakes recently.
Company Performance and Future Outlook
Madrigal Pharmaceuticals has a market capitalization of $13.28 billion and a price-to-earnings ratio of -45.49. The company reported its latest quarterly earnings on November 4, revealing a loss of ($5.08) earnings per share, which fell short of analysts’ expectations of ($2.01). The firm’s negative return on equity stands at -38.38%, with a net margin of -54.68%.
Analysts are forecasting that Madrigal will post an earnings per share of ($23.47) for the current fiscal year. As a clinical-stage biopharmaceutical company, Madrigal focuses on developing therapeutics for the treatment of non-alcoholic steatohepatitis (NASH) in the United States, with its lead product candidate, resmetirom, currently in Phase 3 clinical trials.
This surge in stock performance and analyst optimism signals confidence in Madrigal Pharmaceuticals as it aims to advance its promising therapeutic solutions in a competitive biopharmaceutical landscape.
