Madrigal Pharmaceuticals (NASDAQ:MDGL) Shares Gap Down After Earnings Miss

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)’s stock price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $491.49, but opened at $452.02. Madrigal Pharmaceuticals shares last traded at $450.3060, with a volume of 428,933 shares.

The biopharmaceutical company reported ($2.57) earnings per share for the quarter, missing the consensus estimate of $0.04 by ($2.61). Madrigal Pharmaceuticals had a negative return on equity of 41.50% and a negative net margin of 39.04%.The business had revenue of $321.08 million during the quarter, compared to analyst estimates of $310.36 million. During the same quarter last year, the company posted ($2.71) EPS. Madrigal Pharmaceuticals’s quarterly revenue was up 210.8% compared to the same quarter last year.

Madrigal Pharmaceuticals News Summary

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

• Positive Sentiment: Q4 and full‑year Rezdiffra (resmetirom) sales were solid — $321.1M in Q4 and $958.4M for the year, with >36,250 patients on therapy, supporting commercial traction and revenue momentum. GlobeNewswire: Q4 and FY2025 Results
• Positive Sentiment: Company highlights an expanding, industry‑leading MASH pipeline with >10 programs at various stages — supports longer‑term growth potential beyond current drug sales. GlobeNewswire: Pipeline Details
• Positive Sentiment: Strong year‑end liquidity — cash, equivalents and marketable securities totaled ~$988.6M, which gives the company runway to fund commercialization and R&D. GlobeNewswire: Cash Position
• Neutral Sentiment: Investor materials and management commentary are available (conference call, slide deck and transcript) for details on commercialization cadence and pipeline timelines; these may clarify guidance and near‑term expectations. Slide Deck / Call Materials
• Negative Sentiment: Big EPS miss: reported Q4 loss of ($2.57) per share vs. analyst estimate of $0.04 — the wider‑than‑expected loss is the primary catalyst for the sell‑off today. Zacks: Q4 Loss
• Negative Sentiment: Company remains unprofitable (negative return on equity ~41.5% and negative net margin ~39%), and some analysts highlighted the wider loss in market commentary. Seeking Alpha: Market Reaction
• Negative Sentiment: Volume spiked versus average, consistent with heavy selling pressure after the results; combined with the EPS miss this is driving the stock lower. MarketBeat: Trading Snapshot

Analysts Set New Price Targets

MDGL has been the topic of several analyst reports. B. Riley Financial increased their price target on Madrigal Pharmaceuticals from $560.00 to $670.00 and gave the stock a “buy” rating in a research report on Thursday, December 11th. Zacks Research cut Madrigal Pharmaceuticals from a “hold” rating to a “strong sell” rating in a research report on Monday, January 12th. Oppenheimer upped their price objective on Madrigal Pharmaceuticals from $600.00 to $650.00 and gave the stock an “outperform” rating in a research report on Thursday, November 20th. Barclays initiated coverage on shares of Madrigal Pharmaceuticals in a research note on Tuesday, January 27th. They set an “overweight” rating and a $964.00 price objective on the stock. Finally, TD Cowen reiterated a “buy” rating on shares of Madrigal Pharmaceuticals in a research note on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Madrigal Pharmaceuticals has a consensus rating of “Moderate Buy” and an average price target of $663.86.

Insider Transactions at Madrigal Pharmaceuticals

In related news, CEO William John Sibold sold 1,577 shares of the stock in a transaction on Monday, January 26th. The stock was sold at an average price of $492.42, for a total value of $776,546.34. Following the completion of the transaction, the chief executive officer directly owned 148,497 shares of the company’s stock, valued at approximately $73,122,892.74. This represents a 1.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Paul A. Friedman sold 24,520 shares of Madrigal Pharmaceuticals stock in a transaction on Friday, January 9th. The stock was sold at an average price of $522.39, for a total transaction of $12,809,002.80. Following the sale, the director directly owned 187,164 shares in the company, valued at approximately $97,772,601.96. This trade represents a 11.58% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 99,537 shares of company stock valued at $53,485,702. Insiders own 21.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in MDGL. Flagship Harbor Advisors LLC purchased a new position in Madrigal Pharmaceuticals during the fourth quarter worth approximately $29,000. Aventura Private Wealth LLC purchased a new position in shares of Madrigal Pharmaceuticals during the 4th quarter worth $36,000. Kemnay Advisory Services Inc. purchased a new position in shares of Madrigal Pharmaceuticals during the 4th quarter worth $39,000. Mather Group LLC. acquired a new position in shares of Madrigal Pharmaceuticals during the 3rd quarter valued at about $33,000. Finally, Global Retirement Partners LLC grew its holdings in shares of Madrigal Pharmaceuticals by 221.7% in the third quarter. Global Retirement Partners LLC now owns 74 shares of the biopharmaceutical company’s stock valued at $34,000 after purchasing an additional 51 shares during the period. 98.50% of the stock is currently owned by institutional investors and hedge funds.

Madrigal Pharmaceuticals Trading Down 11.1%

The stock has a market capitalization of $9.92 billion, a price-to-earnings ratio of -33.58, a PEG ratio of 6.98 and a beta of -1.01. The company’s 50-day moving average is $524.34 and its 200-day moving average is $480.46. The company has a quick ratio of 3.26, a current ratio of 3.44 and a debt-to-equity ratio of 0.54.

Madrigal Pharmaceuticals Company Profile

Madrigal Pharmaceuticals, Inc is a clinical-stage biopharmaceutical company focused on the development of innovative therapies for cardiovascular, metabolic and liver diseases. The company’s pipeline centers on novel, liver-directed agents designed to address significant unmet medical needs, with an emphasis on nonalcoholic steatohepatitis (NASH) and related metabolic disorders.

The lead product candidate, resmetirom (MGL-3196), is an orally administered, selective thyroid hormone receptor-β agonist in Phase 3 development for the treatment of NASH.