A Look at Madrigal Pharmaceuticals Inc. (MDGL) Shares in the Recent Past Indicates Growth

Madrigal Pharmaceuticals Inc. (NASDAQ: MDGL) stock jumped 0.31% on Friday to $175.89 against a previous-day closing price of $175.34. With 0.79 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.34 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $182.00 whereas the lowest price it dropped to was $172.80. The 52-week range on MDGL shows that it touched its highest point at $322.67 and its lowest point at $57.21 during that stretch. It currently has a 1-year price target of $326.83. Beta for the stock currently stands at -0.72.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MDGL was down-trending over the past week, with a drop of -10.52%, but this was up by 0.16% over a month. Three-month performance dropped to -31.17% while six-month performance fell -28.47%. The stock gained 154.51% in the past year, while it has lost -39.40% so far this year. A look at the trailing 12-month EPS for MDGL yields -18.64 with Next year EPS estimates of -12.58. For the next quarter, that number is -4.94. This implies an EPS growth rate of -17.80% for this year and 34.60% for next year.

Float and Shares Shorts:

At present, 18.31 million MDGL shares are outstanding with a float of 16.34 million shares on hand for trading. On Aug 30, 2023, short shares totaled 1.96 million, which was 10.62% higher than short shares on Jul 30, 2023. In addition to Dr. Rebecca A. Taub M.D. as the firm’s Founder, Chief Medical Officer, Pres of R&D and Director, Mr. Alex G. Howarth serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 85.07% of MDGL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.78% of MDGL, in contrast to 31.86% held by mutual funds. Shares owned by individuals account for 30.34%. As the largest shareholder in MDGL with 10.31% of the stake, Janus Henderson Investors US LLC holds 1,904,337 shares worth 1,904,337. A second-largest stockholder of MDGL, Baker Bros. Advisors LP, holds 1,545,113 shares, controlling over 8.37% of the firm’s shares. Avoro Capital Advisor LLC is the third largest shareholder in MDGL, holding 1,515,151 shares or 8.20% stake. With a 2.45% stake in MDGL, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 452,219 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.06% of MDGL stock, is the second-largest Mutual Fund holder. It holds 381,180 shares valued at 68.61 million. Janus Henderson Contrarian Fund holds 1.76% of the stake in MDGL, owning 324,937 shares worth 58.49 million.


An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, MDGL reported revenue of $0.00 and operating income of -$70.27M. The EBITDA in the recently reported quarter was -$69.84M and diluted EPS was -$4.14.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MDGL since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MDGL analysts setting a high price target of $410.00 and a low target of $224.00, the average target price over the next 12 months is $326.83. Based on these targets, MDGL could surge 133.1% to reach the target high and rise by 27.35% to reach the target low. Reaching the average price target will result in a growth of 85.81% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded MDGL stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 58 over the past year. The total number of shares bought during that period was 166,338 while 82,489 shares were sold.

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