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Madrigal Pharmaceuticals Sees Price Targets Raised Amid Rezdiffra Optimism

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 12/19/2025, 4:47 pm ET 12/19/2025, 4:47 pm ET | 6 min 6 min read
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Madrigal Pharmaceuticals Inc. stocks have been trading up by 8.56 percent following positive FDA designation announcements.

Healthcare industry expert:

Analyst sentiment – positive

Madrigal Pharmaceuticals (MDGL) holds a challenging but strategically significant market position given its negative profitability ratios highlighted by an EBIT margin of -39.3%, EBITA margin of -39%, and a pretax profit margin at an alarming -202.2%. Although revenue for the latest period stands at $287.3 million, its profitability metrics remain severely impacted, with a net income of -$114.19 million. Moreover, the company’s leverage (total debt-to-equity ratio of 0.55) and liquidity (current ratio of 3.4) illustrate reasonable financial prudence. However, negative returns on assets (-52.69%) and equity (-98.93%) underscore ongoing operational challenges. Despite these issues, Madrigal’s gross margin of 98.3% suggests robust product value, possibly due to high-margin proprietary drugs like Rezdiffra.

Analyzing Madrigal’s recent price action shows a dominant downtrend with some stabilization. The stock saw a peak of 593 before retracing to close at 591 on December 19, indicating consolidation at this level. The weekly price action highlights a decrease from an open of 560.55 to 544.4345, confirming bearish momentum. Nevertheless, the subsequent rebound suggests potential support. The 5-minute candles display tentative buying interest at lower levels but lack decisive upward follow-through. For traders, a strategic approach would be to adopt a cautious buying stance near the 560 support zone, anticipating a test towards the resistance at 600, contingent on volume confirmation.

Recent analyst upgrades and increased price targets for Madrigal Pharmaceuticals from H.C. Wainwright, Truist, and others reflect a notable bullish sentiment, buoyed by optimistic forecasts for Rezdiffra, especially within the niche MASH F4 subtype. These revisions, alongside positive sentiment from strategic maneuvers like extended exclusivity, suggest favorable medium-term prospects despite current financial drawbacks. Compared to industry benchmarks, Madrigal’s ambitious growth trajectory hinges on its ability to convert pipeline potential into revenue, underpinned by the strong product uptake. Current analyst targets ranging from $620 to $670 confirm this optimistic view. Nonetheless, investors should monitor support around 560 closely. Overall, MDGL maintains an optimistic outlook contingent on successful execution but warrants cautious optimism given its volatile earnings profile.

Candlestick Chart

Weekly Update Dec 15 – Dec 19, 2025: On Friday, December 19, 2025 Madrigal Pharmaceuticals Inc. stock [NASDAQ: MDGL] is trending up by 8.56%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview: Recent Performance and Key Metrics

Madrigal Pharmaceuticals exhibits a complex financial landscape influenced by various strategic decisions and external assessments. The company’s revenue stood at $287.27M with a stark contrast against total expenses of $401.24M, resulting in a net income loss of $114.19M for the recent quarter. The negative profit margins highlight ongoing challenges, despite a healthy gross margin of 98.3%, which underscores the high profitability of their products despite the net losses.

The strategic management of debt is evident, with the company showcasing a solid current ratio of 3.4, indicating good liquidity. In the latest trading data, MDGL has experienced fluctuations typical of pharmaceutical stocks reacting to external analyses and internal developments. The stock closed at $544.41 on December 18, having touched lows and highs in the days prior, hinting at market volatility largely induced by external evaluations and speculations about its drug, Rezdiffra.

More Breaking News

Financial reports reveal a focus on expanding operational capabilities and strategic investments, such as a notable change in cash flows reflecting high investment activity. Despite a lack of profitability, the ongoing bullish sentiment among analysts seems driven largely by developmental progress and potential market capture, specifically for its therapeutic products addressing MASH (Metabolic Associated Steatohepatitis).

Conclusion

Madrigal Pharmaceuticals is currently experiencing a pivotal phase where strategic efforts and positive analyst assessments suggest a promising trajectory for its stock. The increase in price targets by several notable analysts, driven by Rezdiffra’s market potential, places Madrigal in an opportunistic position within the pharmaceutical landscape. This surge in analyst optimism is inherently linked to Madrigal’s comprehensive strategy to maintain robust market momentum and scalability.

While challenges persist as reflected by the company’s current profit margins, the sentiment around its pipeline success and expanded market opportunities positions it for potential growth, attracting trader attention. As development and commercial activities progress, closely watching further analyst updates and strategic corporate decisions will be key to understanding the future path of Madrigal’s market performance. As millionaire penny stock trader and teacher Tim Sykes says, “Be patient, don’t force trades, and let the perfect setups come to you.” This mindset is essential for those intrigued by Madrigal’s potential, emphasizing that a thoughtful and calculated approach will yield the best outcomes as the company’s trajectory unfolds.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”