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Madrigal Pharmaceuticals’ Stock Surge: Analyzing Latest Price Target Upgrades

Ellis HobbsAvatar
Written by Ellis Hobbs Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 12/19/2025, 4:10 pm ET 12/19/2025, 4:10 pm ET | 2 min 2 min read
Madrigal Pharmaceuticals’ Stock Surge: Analyzing Latest Price Target Upgrades Thumbnail

Madrigal Pharmaceuticals Inc.’s stock is up 8.56% due to positive sentiment from strategic expansion and earnings potential.

Quick Financial Overview

Madrigal Pharmaceuticals is gearing up for a promising expansion, bolstered by recent strategic assessments and updated price targets. Current price movements reveal a promising climb, with shares recently hovering around $591. The positive trajectory aligns with an increased buy sentiment, as noted by several analysts advocating for significant earnings potential propelled by Rezdiffra’s expanding commercial reach.

Comprehensive financial health underpins this optimism. Although the company endures negative earnings at present, with reported EBITDA at -$106M and a high price-to-book ratio at 17.82, its substantial gross margin of 98.3% offers a resilient foundation for eventual profitability. Encouraging market participation is further supported by a robust current ratio of 3.4, signaling reliable short-term financial health amid ongoing developmental costs.

Operational success is closely tied to strategic financial maneuvers, demonstrated by a recovering cash position of over $300M. Smartly timed debt issuances, coupled with controlled capital expenditures, enable redemption of modest long-term debt levels compared to equity. This strategic financial leverage creates stability for focused R&D investment in Rezdiffra, which is anticipated to yield extensive returns as the drug’s commercial footprint widens.

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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Ellis Hobbs

Trainer and Mentor on Tim Sykes’ Trading Challenge
He teaches webinars on Tim Sykes’ Trading Challenge He treats trading like a business, not a hobby He emphasizes taking small risks — “If you get the process right, money is a forgone conclusion.”
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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”