Avidity Biosciences (NASDAQ:RNA) Shares Gap Down After Insider Selling

Key Points

• Avidity Biosciences shares opened at $44.46 after gapping down due to significant insider selling, which included a 67.69% decrease in the ownership of insider Steven George Hughes who sold 81,434 shares.
• Analysts have mixed views on the company, with Bank of America raising its target price from $48.00 to $54.00, while other firms like HC Wainwright cut their target price from $72.00 to $68.00.
• Avidity reported a quarterly earnings miss with a loss of ($0.90) per share, contributing to a negative net margin of 4,136.00% and disappointing revenue of $1.60 million compared to expectations.

Avidity Biosciences, Inc. (NASDAQ:RNA - Get Free Report)'s share price gapped down prior to trading on Monday following insider selling activity. The stock had previously closed at $46.29, but opened at $44.46. Avidity Biosciences shares last traded at $44.45, with a volume of 505,071 shares traded.

Specifically, insider Steven George Hughes sold 81,434 shares of the business's stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $42.74, for a total transaction of $3,480,489.16. Following the completion of the transaction, the insider owned 38,867 shares in the company, valued at $1,661,175.58. The trade was a 67.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Arthur A. Levin sold 107,500 shares of Avidity Biosciences stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $47.62, for a total value of $5,119,150.00. Following the transaction, the director owned 19,650 shares in the company, valued at approximately $935,733. This represents a 84.55% decrease in their position. The disclosure for this sale can be found here. In other Avidity Biosciences news, Director Troy Edward Wilson sold 65,554 shares of the stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $45.00, for a total value of $2,949,930.00. Following the completion of the transaction, the director owned 17,776 shares in the company, valued at approximately $799,920. This represents a 78.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.

Analyst Ratings Changes

Several analysts have recently issued reports on the company. Citigroup upped their price target on Avidity Biosciences from $70.00 to $75.00 and gave the stock a "buy" rating in a research note on Tuesday, June 10th. Chardan Capital reaffirmed a "buy" rating and issued a $75.00 target price on shares of Avidity Biosciences in a research report on Friday, August 8th. Evercore ISI reissued an "outperform" rating and set a $70.00 price target on shares of Avidity Biosciences in a report on Friday, July 11th. The Goldman Sachs Group upgraded Avidity Biosciences to a "buy" rating and set a $55.00 price target for the company in a report on Thursday, July 10th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Avidity Biosciences from $57.00 to $59.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 10th. Seventeen research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $67.00.

Avidity Biosciences Stock Up 0.9%

The firm has a market cap of $5.98 billion, a price-to-earnings ratio of -15.49 and a beta of 0.95. The company's 50-day moving average price is $34.39 and its 200-day moving average price is $31.80.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. E Fund Management Co. Ltd. grew its holdings in Avidity Biosciences by 4.6% in the second quarter. E Fund Management Co. Ltd. now owns 14,163 shares of the biotechnology company's stock valued at $402,000 after purchasing an additional 629 shares during the period. Sofinnova Investments Inc. raised its holdings in shares of Avidity Biosciences by 53.9% during the second quarter. Sofinnova Investments Inc. now owns 584,801 shares of the biotechnology company's stock worth $16,608,000 after purchasing an additional 204,870 shares during the period. Hudson Bay Capital Management LP acquired a new stake in shares of Avidity Biosciences in the 2nd quarter worth about $2,130,000. Frazier Life Sciences Management L.P. increased its stake in Avidity Biosciences by 19.0% during the 2nd quarter. Frazier Life Sciences Management L.P. now owns 625,000 shares of the biotechnology company's stock valued at $17,750,000 after buying an additional 100,000 shares during the period. Finally, BNP Paribas Financial Markets boosted its position in shares of Avidity Biosciences by 29.7% during the 2nd quarter. BNP Paribas Financial Markets now owns 16,895 shares of the biotechnology company's stock valued at $480,000 after purchasing an additional 3,870 shares in the last quarter.

About Avidity Biosciences

Avidity Biosciences, Inc, a biopharmaceutical company, engages in the delivery of RNA therapeutics. It develops antibody oligonucleotide conjugates (AOC) that are designed to treat diseases previously untreatable with RNA therapeutics. The company's lead product candidate AOC 1001 for the treatment of myotonic dystrophy type 1, a rare monogenic muscle disease that is in phase 1/2 clinical trial.