MDGL Should I Buy
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Madrigal Pharmaceuticals (MDGL) is not a strong buy at this moment for a beginner, long-term investor. While the company has shown impressive revenue growth and has strong analyst support with high price targets, the recent financial performance, insider selling, and lack of proprietary trading signals suggest caution. The stock may be better suited for more experienced investors or those willing to wait for a clearer entry point.
The technical indicators are mixed. The MACD histogram is positive but contracting, suggesting weakening momentum. RSI is neutral at 27.338, and moving averages are converging, indicating no clear trend. The stock is trading near its support level (S1: 439.804), with resistance levels at R1: 494.636 and R2: 511.574. Overall, there is no strong technical signal for immediate action.
Hedge funds are significantly increasing their positions, with a 176.46% increase in buying over the last quarter.
Strong revenue growth of 210.77% YoY in Q4
Analysts have set high price targets, with Barclays initiating coverage with a $964 target and Citizens raising its target to $
The company's intellectual property coverage for Rezdiffra extends into the 2040s, providing long-term growth potential.
Insiders are selling heavily, with a 577.34% increase in selling activity over the last month.
The company reported a Q4 2025 net loss of $58.58 million and missed EPS expectations by $2.
Wolfe Research downgraded the stock, citing concerns about valuation and Inventiva patent strength.
Options data indicates bearish sentiment in the short term.
Madrigal Pharmaceuticals reported Q4 2025 revenue of $321.08 million, reflecting a 210.77% YoY increase. However, the company posted a net loss of $58.58 million, with EPS dropping to -$2.55, down 5.90% YoY. Gross margin also declined to 92.39%, down 4.43% YoY. While revenue growth is strong, profitability remains a concern.
Analysts have mixed views. Barclays initiated coverage with an Overweight rating and a $964 price target, while Citizens raised its target to $745 with an Outperform rating. However, Wolfe Research downgraded the stock to Peer Perform, citing valuation concerns. Overall, analysts are optimistic about the company's long-term prospects but cautious about its current valuation.
