Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) director Richard S. Levy has sold a significant portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place on April 1st, involved the sale of company stock worth over $2.8 million.
Levy, who serves as a director at Madrigal Pharmaceuticals, engaged in multiple sales transactions at varying prices. The weighted average price of the shares sold ranged from $255.899 to $267.0733. This series of transactions resulted in a total sale value of approximately $2,832,334.
In addition to the sales, the SEC filing also disclosed that Levy acquired shares through transactions coded as "M" for a total value of $703,160. The prices for these acquisitions ranged between $7.36 and $111.06 per share.
The SEC filing indicated that these sales were executed in accordance with a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell shares over a predetermined period of time to avoid concerns about insider trading.
Following these transactions, Levy's remaining direct ownership in Madrigal Pharmaceuticals' common stock has adjusted accordingly. The filing did not specify Levy's exact remaining holdings but provided post-transaction amounts after each sale and acquisition.
Investors often monitor insider buying and selling as it can provide insights into an insider’s perspective on the company’s value. Madrigal Pharmaceuticals, known for its focus on pharmaceutical preparations, has not issued any statements regarding these transactions at the time of this report.
InvestingPro Insights
Amid the recent insider transactions at Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), the company's financial health and market performance provide additional context for investors. According to InvestingPro data, Madrigal Pharmaceuticals currently holds a market capitalization of $5.06 billion USD. Despite a challenging period, the stock has experienced a significant price uptick over the last six months, with a total return of 80.63%.
The company's Price / Book ratio, as of the last twelve months ending Q4 2023, stands at a high 12.7, which suggests that the stock is trading at a premium compared to its book value. This metric, along with the InvestingPro Tip indicating that the stock price often moves in the opposite direction of the market, may be of particular interest to investors considering the recent insider sales.
An InvestingPro Tip also highlights that Madrigal Pharmaceuticals holds more cash than debt on its balance sheet, which could be seen as a sign of financial stability. However, analysts have revised their earnings downwards for the upcoming period, and the company is not expected to be profitable this year. With these insights, investors may want to delve deeper into Madrigal's financials and market potential. For a more comprehensive analysis, including additional InvestingPro Tips, visit InvestingPro where 12 more tips are available. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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