Have Insiders Sold Madrigal Pharmaceuticals Shares Recently?

Anyone interested in Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) should probably be aware that the Founder, Rebecca Taub, recently divested US$462k worth of shares in the company, at an average price of US$273 each. On the bright side, that sale was only 0.4% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Madrigal Pharmaceuticals

The Last 12 Months Of Insider Transactions At Madrigal Pharmaceuticals

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, William Sibold, sold US$1.6m worth of shares at a price of US$244 per share. That means that an insider was selling shares at slightly below the current price (US$294). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 51% of William Sibold's holding.

Insiders in Madrigal Pharmaceuticals didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Madrigal Pharmaceuticals insiders own 11% of the company, worth about US$718m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other 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. In terms of investment risks, we've identified 2 warning signs with Madrigal Pharmaceuticals and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.