Madrigal Pharmaceuticals (NASDAQ:MDGL) Hits New 1-Year Low – Should You Sell?

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) shares reached a new 52-week low during trading on Wednesday. The company traded as low as $367.02 and last traded at $377.30, with a volume of 152,363 shares. The stock had previously closed at $396.32.

Key Madrigal Pharmaceuticals News

Here are the key news stories impacting Madrigal Pharmaceuticals this week:

• Positive Sentiment: Third-quarter EPS was $1.83, well ahead of analysts’ expected loss of $1.09, while revenue of $431.27 million topped estimates of $404.17 million. Rezdiffra sales reportedly surpassed $1 billion, with sales up 50%. Madrigal third-quarter 2026 results
• Positive Sentiment: Citigroup raised its price target to $760 and maintained a Buy rating, signaling substantial potential upside in the analyst’s view. Citigroup price-target update
• Neutral Sentiment: Madrigal expects a MAESTRO-NASH OUTCOMES readout in late 2027 and is planning a study of more than 2,000 patients. These programs may provide future catalysts, but the timing is relatively distant. Clinical-trial update
• Negative Sentiment: Despite the earnings beat, coverage pointed to near-term profitability concerns as a factor behind the stock’s weakness. Separately, Kaplan Fox announced an investigation into potential securities-law violations. The announcement is an investigation notice, not a finding of wrongdoing. Report on profitability concerns Kaplan Fox investigation announcement

Analysts Set New Price Targets

MDGL has been the subject of a number of research analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Madrigal Pharmaceuticals in a research report on Thursday, October 15th. Wolfe Research upgraded Madrigal Pharmaceuticals from a “peer perform” rating to an “outperform” rating and set a $605.00 price objective for the company in a research note on Tuesday, August 4th. UBS Group reissued a “buy” rating and issued a $735.00 price objective on shares of Madrigal Pharmaceuticals in a report on Wednesday, October 14th. Barclays lowered their target price on shares of Madrigal Pharmaceuticals from $964.00 to $962.00 and set an “overweight” rating on the stock in a research report on Monday, August 3rd. Finally, HC Wainwright reaffirmed a “buy” rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 31st. Fourteen investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $703.80.

Madrigal Pharmaceuticals Stock Performance

The stock has a market capitalization of $9.10 billion, a price-to-earnings ratio of -30.49 and a beta of -0.98. The company has a quick ratio of 2.94, a current ratio of 3.20 and a debt-to-equity ratio of 0.65. The firm has a fifty day moving average of $494.64 and a 200-day moving average of $498.92.

Madrigal Pharmaceuticals (NASDAQ:MDGL) last posted its earnings results on Tuesday, November 3rd. The biopharmaceutical company reported $1.83 earnings per share for the quarter, beating the consensus estimate of ($1.09) by $2.92. Madrigal Pharmaceuticals had a negative net margin of 25.32% and a negative return on equity of 56.65%. The firm had revenue of $431.27 million during the quarter, compared to the consensus estimate of $404.17 million. During the same period last year, the firm posted ($5.08) EPS. As a group, sell-side analysts anticipate that Madrigal Pharmaceuticals, Inc. will post -7.03 EPS for the current year.

Insider Buying and Selling

In other news, CEO William Sibold sold 6,362 shares of the business’s stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $535.59, for a total value of $3,407,423.58. Following the completion of the transaction, the chief executive officer directly owned 202,967 shares of the company’s stock, valued at $108,707,095.53. The trade was a 3.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Shannon T. Kelley sold 664 shares of the company’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $514.97, for a total value of $341,940.08. Following the completion of the sale, the general counsel owned 11,474 shares in the company, valued at $5,908,765.78. This represents a 5.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 12,247 shares of company stock valued at $6,581,182. Corporate insiders own 17.60% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Janus Henderson Group PLC increased its holdings in Madrigal Pharmaceuticals by 27.4% in the 1st quarter. Janus Henderson Group PLC now owns 2,018,647 shares of the biopharmaceutical company’s stock valued at $1,051,727,000 after purchasing an additional 433,804 shares in the last quarter. Jupiter Topco LLC acquired a new position in shares of Madrigal Pharmaceuticals during the second quarter worth about $1,039,650,000. Paulson & CO. Inc. acquired a new position in shares of Madrigal Pharmaceuticals during the second quarter worth about $719,524,000. BlackRock Inc. acquired a new position in shares of Madrigal Pharmaceuticals during the second quarter worth about $644,753,000. Finally, Wellington Management Group LLP boosted its position in shares of Madrigal Pharmaceuticals by 18.8% in the second quarter. Wellington Management Group LLP now owns 825,714 shares of the biopharmaceutical company’s stock worth $443,367,000 after buying an additional 130,756 shares during the period. Institutional investors and hedge funds own 98.50% of the company’s stock.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing medicines for nonalcoholic steatohepatitis, now known as metabolic dysfunction-associated steatohepatitis (MASH), and other chronic liver diseases. The company is headquartered in West Conshohocken, Pennsylvania.

Madrigal’s lead product is Rezdiffra (resmetirom), an orally administered thyroid hormone receptor beta agonist designed to target key drivers of liver disease, including hepatic fat accumulation and fibrosis.