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 with $50,000-$100,000 to invest. While the company has shown significant revenue growth and has a promising FDA-approved drug, its declining net income, EPS, and gross margin, combined with mixed analyst ratings and no strong technical or proprietary trading signals, suggest holding off on immediate investment.
The technical indicators show a neutral to slightly bullish trend. The MACD is positive but contracting, RSI is neutral at 58.461, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support is at 508.82, and resistance is at 542.474. However, the stock is trading near its pivot point of 525.647, indicating limited immediate upside potential.
FDA approval of Rezdiffra, the first drug for metabolic dysfunction-associated steatohepatitis, with significant revenue growth in
Hedge funds are buying, with a 176.46% increase in buying activity last quarter.
Barclays initiated coverage with an Overweight rating and a $964 price target, indicating long-term potential.
Declining net income (-1.42% YoY), EPS (-5.90% YoY), and gross margin (-4.43% YoY) in the latest quarter.
Mixed analyst ratings, with BofA lowering price targets twice in 2026 and maintaining a Neutral rating.
No recent congress trading data or strong proprietary trading signals to support immediate action.
In Q4 2025, revenue increased by 210.77% YoY to $321.08 million, driven by the launch of Rezdiffra. However, net income dropped to -$58.58 million, EPS fell to -2.55, and gross margin declined to 92.39%. These mixed results highlight strong top-line growth but ongoing profitability challenges.
Analyst ratings are mixed. Barclays is bullish with a $964 price target and Overweight rating, while BofA has lowered its price target twice in 2026, citing gross-to-net adjustments and limited Q4 earnings impact. Citizens raised its price target to $745, citing long-term confidence in Rezdiffra's revenue potential.
