Avidity Biosciences CEO sells more than $1.4 million in company stock to Investing.com

In a recent transaction, Sarah Boyce, President and CEO of Avidity Biosciences, Inc. (NASDAQ:RNA), sold 32,880 shares of the company’s common stock at an average price of $44.00, amounting to $1,446,723. This sale was part of a planned transaction related to withholding tax obligations on restricted stock units (RSUs).

The sale took place on September 23, 2024 and was executed as a “sell-to-cover” transaction mandated by the company’s equity incentive plans. This approach is used to cover withholding tax obligations arising from the award of performance-based URS. The shares sold were granted on September 19, 2024, following the achievement of a company performance goal, specifically the completion of a clinical event related to the drug del-brax.

The transactions were disclosed in a Form 4 filed with the Securities and Exchange Commission (SEC). According to the filing, the shares were sold at prices ranging from $44.00 to $44.02, with a weighted average price of $44.0001 per share. Following this sale, Boyce’s direct ownership in the company is 234,663 shares.

In addition, on September 19, 2024, Boyce received 62,500 common shares related to the payment of PSUs due to the achievement of the same performance goal. This added to her holdings, bringing her total to 297,163 shares before the aforementioned sale. Another set of 25,000 PSUs also vested on September 19, which converted to time-based RSUs that will vest on March 19, 2025, subject to her continued employment with the Company.

Investors often monitor insider trading because it can provide information about executives’ confidence in their company’s future prospects. However, in this case, the sale was not a discretionary transaction, but rather a necessary action as part of the company’s equity incentive plans.

In other recent news, Avidity Biosciences announced a $250 million public offering of common stock with an additional $37.5 million option for the underwriters. Proceeds are earmarked for the advancement of research and development, including its Antibody Oligonucleotide Conjugates platform. Leerink Partners and TD Cowen are managing the offering, which is subject to market conditions.

In clinical developments, Avidity reported promising results from a Phase 1/2 trial for delpacibart zotadirsen, a potential treatment for Duchenne muscular dystrophy. The study showed significant increases in dystrophin production and exon 44 skipping, along with a substantial reduction in creatine kinase levels.

Returning to analyst views, BofA Securities raised their price target from $40.00 to $45.00, maintaining a Buy rating on Avidity shares. Wells Fargo reaffirmed its Overweight rating, while Cantor Fitzgerald initiated coverage with an Overweight rating.

Finally, the company expanded its board of directors with the appointment of Simona Skerjanec and received Breakthrough Therapy designation from the FDA for its lead investigational drug, delpacibart etedesiran. These are the recent developments at Avidity Biosciences.

InvestingPro Insights

As investors evaluate recent insider trades at Avidity Biosciences, Inc., it is important to consider the company’s financial health and market performance. Avidity Biosciences currently has a market cap of $5.08 billion, according to InvestingPro data. Despite a robust year-to-date total price return of 380.66%, the company’s trailing twelve-month revenue in Q2 2024 stands at $10.6 million, with a growth rate of 8.15%. This indicates a positive earnings trajectory, which could be a contributing factor to the company’s stock performance.

However, it’s worth noting that Avidity Biosciences has faced challenges with profitability. The company’s gross profit margin was reported at -2082.31% for the same period, reflecting difficulties in turning revenue into gross profit. Furthermore, the return on assets is -25.78%, which suggests that the company’s assets are not generating returns efficiently. These financial metrics provide a nuanced picture of company performance beyond stock price appreciation.

From InvestingPro Tips’ perspective, Avidity Biosciences is in a strong cash position, holding more cash than debt on its balance sheet, which may be a reassuring sign for investors concerned about the company’s financial stability. Furthermore, 6 analysts revised their earnings upward for the next period, indicating potential optimism about the company’s future financial performance.

For those seeking a deeper analysis, there is additional InvestingPro advice available for Avidity Biosciences at https://www.investing.com/pro/RNA that could further inform investment decisions. As of the most recent update, 11 InvestingPro Tips are listed, providing a comprehensive look at the company’s financial and market potential.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.