Don't Ignore The Insider Selling In Madrigal Pharmaceuticals

Some Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) shareholders may be a little concerned to see that the CEO, President & Director, William Sibold, recently sold a substantial US$3.2m worth of stock at a price of US$446 per share. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Madrigal Pharmaceuticals

In fact, the recent sale by William Sibold was the biggest sale of Madrigal Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$439. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Madrigal Pharmaceuticals insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Madrigal Pharmaceuticals

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Madrigal Pharmaceuticals insiders own about US$1.1b worth of shares (which is 11% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Madrigal Pharmaceuticals Insiders?

Insiders sold Madrigal Pharmaceuticals shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Madrigal Pharmaceuticals has 1 warning sign and it would be unwise to ignore this.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.