This Insider Has Just Sold Shares 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$1.6m worth of stock at a price of US$244 per share. That's a big disposal, and it decreased their holding size by 10%, which is notable but not too bad.

Check out our latest analysis for Madrigal Pharmaceuticals

Madrigal Pharmaceuticals Insider Transactions Over The Last Year

Notably, that recent sale by William Sibold is the biggest insider sale of Madrigal Pharmaceuticals shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$242. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Madrigal Pharmaceuticals didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Madrigal Pharmaceuticals better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Madrigal Pharmaceuticals

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Madrigal Pharmaceuticals insiders own 11% of the company, worth about US$576m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Madrigal Pharmaceuticals Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Madrigal Pharmaceuticals.

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.