Madrigal Pharmaceuticals (NASDAQ:MDGL) Announces Quarterly Earnings Results, Beats Expectations By $0.36 EPS

Madrigal Pharmaceuticals (NASDAQ:MDGL) announced its quarterly earnings data on Wednesday. The biopharmaceutical company reported ($3.25) EPS for the quarter, beating the consensus estimate of ($3.61) by $0.36, FiscalAI reports. The company had revenue of $311.34 million for the quarter, compared to the consensus estimate of $301.05 million. Madrigal Pharmaceuticals had a negative net margin of 30.08% and a negative return on equity of 43.76%. Madrigal Pharmaceuticals’s revenue for the quarter was up 126.8% on a year-over-year basis. During the same period in the prior year, the firm posted ($3.32) EPS.

Here are the key takeaways from Madrigal Pharmaceuticals’ conference call:

• Rezdiffra reached $1.1 billion LTM net sales with Q1 revenue of $311M and >42,250 active patients (2.5x YoY), and management says Q2 momentum is strong.
• The U.S. addressable MASH market has expanded ~50% to ~460,000 diagnosed F2/F3 patients, with diagnosis rates and drug penetration still low (<~10%), implying substantial runway for future growth.
• Madrigal is running an event‑driven F4‑C outcomes trial (potentially doubling the opportunity to ~245,000 patients) with a planned readout in 2027 and supportive open‑label data showing improvement in CSPH‑related risk metrics.
• The company has expanded its pipeline to >10 programs (including the newly in‑licensed siRNA ARO‑PNPLA3 showing up to 46% liver fat reduction in Phase I) while increasing R&D and SG&A spending, widening the net loss and reducing cash to ~$818M—supportive of long‑term upside but with near‑term cost impact.

Madrigal Pharmaceuticals Stock Performance

NASDAQ MDGL traded down $4.87 on Thursday, reaching $534.86. 384,297 shares of the stock were exchanged, compared to its average volume of 350,975. Madrigal Pharmaceuticals has a one year low of $265.00 and a one year high of $615.00. The firm has a market capitalization of $12.32 billion, a PE ratio of -41.56 and a beta of -1.04. The company’s 50-day simple moving average is $486.52 and its two-hundred day simple moving average is $506.47. The company has a current ratio of 4.01, a quick ratio of 3.77 and a debt-to-equity ratio of 0.56.

Insider Activity at Madrigal Pharmaceuticals

In other Madrigal Pharmaceuticals news, Director Rebecca Taub sold 491 shares of the firm’s stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $431.94, for a total transaction of $212,082.54. Following the sale, the director owned 452,213 shares in the company, valued at approximately $195,328,883.22. This trade represents a 0.11% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO William John Sibold sold 1,663 shares of the firm’s stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $431.94, for a total transaction of $718,316.22. Following the sale, the chief executive officer owned 161,829 shares in the company, valued at approximately $69,900,418.26. The trade was a 1.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 6,098 shares of company stock worth $2,626,254 in the last 90 days. Insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Madrigal Pharmaceuticals

Several institutional investors and hedge funds have recently modified their holdings of the stock. Centaurus Financial Inc. raised its position in shares of Madrigal Pharmaceuticals by 5.0% during the third quarter. Centaurus Financial Inc. now owns 709 shares of the biopharmaceutical company’s stock valued at $325,000 after buying an additional 34 shares during the last quarter. HighTower Advisors LLC raised its position in shares of Madrigal Pharmaceuticals by 4.1% during the fourth quarter. HighTower Advisors LLC now owns 1,173 shares of the biopharmaceutical company’s stock valued at $683,000 after buying an additional 46 shares during the last quarter. Orion Porfolio Solutions LLC raised its position in shares of Madrigal Pharmaceuticals by 1.3% during the second quarter. Orion Porfolio Solutions LLC now owns 3,638 shares of the biopharmaceutical company’s stock valued at $1,101,000 after buying an additional 47 shares during the last quarter. Smartleaf Asset Management LLC raised its position in shares of Madrigal Pharmaceuticals by 50.8% during the fourth quarter. Smartleaf Asset Management LLC now owns 187 shares of the biopharmaceutical company’s stock valued at $109,000 after buying an additional 63 shares during the last quarter. Finally, Kemnay Advisory Services Inc. bought a new stake in shares of Madrigal Pharmaceuticals during the fourth quarter valued at approximately $39,000. Institutional investors own 98.50% of the company’s stock.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Citigroup reaffirmed an “outperform” rating on shares of Madrigal Pharmaceuticals in a report on Tuesday, January 20th. Bank of America dropped their price target on shares of Madrigal Pharmaceuticals from $570.00 to $529.00 and set a “neutral” rating on the stock in a report on Friday, February 20th. Citizens Jmp raised their price target on shares of Madrigal Pharmaceuticals from $527.00 to $745.00 and gave the company a “market outperform” rating in a report on Tuesday, January 20th. Barclays assumed coverage on shares of Madrigal Pharmaceuticals in a report on Tuesday, January 27th. They set an “overweight” rating and a $964.00 price target on the stock. Finally, Zacks Research raised shares of Madrigal Pharmaceuticals from a “strong sell” rating to a “hold” rating in a report on Friday, February 20th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $682.07.

Key Madrigal Pharmaceuticals News

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

• Positive Sentiment: Q1 results beat expectations: revenue of $311.3M (vs. ~$301M est.) and EPS of -$3.25 (better than -$3.61 est.), driven by robust Rezdiffra MASH sales and strong patient adoption — a clear near-term growth signal. Read More.
• Positive Sentiment: Analyst support: HC Wainwright reaffirmed a “buy” rating with a $620 price target, underlining bullish analyst views on upside from current levels. Read More.
• Neutral Sentiment: Corporate update / slide deck: Madrigal filed its Q1 earnings press release and slide deck with details on sales and strategy (useful for modeling revenue ramp but not a surprise). Read More.
• Neutral Sentiment: Pipeline/licensing activity: coverage discusses Madrigal’s ARO‑PNPLA3 license deal and broader pipeline expansion — strategically important but impact on near-term revenue and valuation is uncertain. Read More.
• Neutral Sentiment: Inducement equity grants: the company granted inducement awards to 47 new non‑executive hires (May 1) — signals hiring/growth investment but adds modest dilution and compensation expense. Read More.
• Negative Sentiment: Underlying profitability and outlook remain challenged: company still posts losses (negative net margin, negative ROE) and consensus expects negative EPS for the year — keeps the risk/valuation debate alive. Read More.
• Negative Sentiment: Market positioning / price reaction: after a strong run and intraday volatility, investors may be taking profits and re‑rating the stock vs. a high market cap and premium expectations — a common cause of pullbacks even after beat. Read More.

About Madrigal Pharmaceuticals

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.