Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) has received an optimistic earnings forecast from Cantor Fitzgerald, which raised its estimates for the company’s fiscal year 2025. In a research report released on October 29, analyst P. Agrawal projected that Madrigal will post earnings of ($5.86) per share, a notable improvement from the previous estimate of ($6.98). The overall consensus for the company’s full-year earnings currently stands at ($23.47) per share.
The report also included estimates for Madrigal’s fiscal year 2026, where earnings are anticipated to reach $9.03 per share. This positive outlook follows Madrigal’s latest earnings report, in which the company declared an earnings per share (EPS) of ($1.90) for the quarter ending August 5. This figure surpassed analysts’ expectations of ($3.48) by $1.58. The company’s revenue for the quarter was $212.80 million, significantly higher than the consensus estimate of $158.94 million.
Madrigal’s financial performance indicates a substantial year-over-year improvement, with revenue increasing by an impressive 1357.5% compared to the same quarter last year, when the company reported an EPS of ($7.10).
Stock Performance and Market Position
As of Friday, shares of Madrigal Pharmaceuticals opened at $418.90. The company currently maintains a current ratio of 5.11, a quick ratio of 4.78, and a debt-to-equity ratio of 0.17. Over the past year, the stock has experienced a low of $238.04 and a high of $463.63. Madrigal holds a market capitalization of $9.30 billion and a price-to-earnings (P/E) ratio of -32.60, reflecting its current financial condition. The stock has a fifty-day moving average price of $433.67 and a two-hundred-day moving average price of $352.46.
Recent Insider Activity and Institutional Investments
In recent insider transactions, CEO William John Sibold sold 7,616 shares on August 21 at an average price of $400.18, totaling approximately $3,047,770.88. Following this sale, Sibold retains ownership of 109,753 shares, valued at around $43,920,955.54, reflecting a 6.49% decrease in his stake. This transaction was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC).
Additionally, Director Kenneth Bate sold 10,000 shares on August 15 at an average price of $365.20, resulting in a transaction valued at $3,652,000.00. After this sale, Bate owns 2,627 shares valued at $959,380.40, marking a significant 79.20% decrease in his ownership.
Over the past ninety days, insiders have acquired 165,683 shares valued at $61,921,142 while selling 248,642 shares worth $91,388,103. Currently, corporate insiders hold approximately 21.50% of the company’s stock.
Several institutional investors have also adjusted their stakes in Madrigal Pharmaceuticals. Notably, Vanguard Personalized Indexing Management LLC increased its position by 10.7% during the third quarter, now owning 1,089 shares valued at $499,000. Other institutions, including Sovran Advisors LLC and CIBC Asset Management Inc., have also initiated new positions, indicating growing interest in the company.
In total, institutional investors and hedge funds control approximately 98.50% of Madrigal’s stock, reflecting strong institutional confidence in the biopharmaceutical firm’s future prospects.
Madrigal Pharmaceuticals, based in the United States, is a clinical-stage biopharmaceutical company primarily focused on developing therapies for non-alcoholic steatohepatitis (NASH). Its leading product candidate, resmetirom, a liver-directed thyroid hormone receptor beta agonist, is currently undergoing Phase 3 clinical trials, positioning the company for potential future growth in a critical therapeutic area.
