Avidity Biosciences (NASDAQ:RNA) Shares Gap Down - What's Next?

Key Points

• Avidity Biosciences shares experienced a significant drop, opening at $37.48 after closing at $46.40, representing a decline of 16.1%.
• Analysts have generally positive outlooks, with several firms raising their price targets, ranging from $59.00 to $96.00, maintaining a consensus rating of "Buy."
• Insider activity indicates significant sales, with key directors reducing their holdings by up to 84.55%, selling over half a million shares valued at approximately $24.8 million in the last quarter.

Avidity Biosciences, Inc. (NASDAQ:RNA - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $46.40, but opened at $37.48. Avidity Biosciences shares last traded at $37.38, with a volume of 1,350,712 shares.

Wall Street Analyst Weigh In

Several analysts have weighed in on RNA shares. Needham & Company LLC lifted their price objective on shares of Avidity Biosciences from $60.00 to $65.00 and gave the stock a "buy" rating in a research note on Wednesday. Chardan Capital reaffirmed a "buy" rating and issued a $75.00 price objective on shares of Avidity Biosciences in a research note on Wednesday. Cantor Fitzgerald reissued an "overweight" rating and set a $96.00 target price on shares of Avidity Biosciences in a research note on Friday, June 27th. Barclays reissued an "overweight" rating and set a $62.00 target price (up from $59.00) on shares of Avidity Biosciences in a research note on Friday, August 8th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Avidity Biosciences from $57.00 to $59.00 and gave the company an "overweight" rating in a research note on Tuesday, June 10th. One equities research analyst has rated the stock with a Strong Buy rating and seventeen have given a Buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $67.28.

Avidity Biosciences Stock Down 16.1%

The firm has a market capitalization of $5.01 billion, a P/E ratio of -10.89 and a beta of 0.99. The firm's 50-day simple moving average is $40.34 and its 200-day simple moving average is $33.51.

Insider Buying and Selling

In other news, Director Arthur A. Levin sold 107,500 shares of the firm's stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $47.62, for a total value of $5,119,150.00. Following the completion of the sale, the director directly owned 19,650 shares of the company's stock, valued at approximately $935,733. This trade represents a 84.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Troy Edward Wilson sold 65,554 shares of the company's stock in a transaction dated Wednesday, August 6th. The stock was sold at an average price of $45.00, for a total transaction of $2,949,930.00. Following the completion of the sale, the director directly owned 17,776 shares in the company, valued at $799,920. This represents a 78.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 541,410 shares of company stock valued at $24,842,402 over the last quarter. Company insiders own 3.83% of the company's stock.

Hedge Funds Weigh In On Avidity Biosciences

Large investors have recently added to or reduced their stakes in the company. Ameriprise Financial Inc. lifted its holdings in shares of Avidity Biosciences by 106.1% in the fourth quarter. Ameriprise Financial Inc. now owns 27,444 shares of the biotechnology company's stock worth $798,000 after buying an additional 14,129 shares in the last quarter. BNP Paribas Financial Markets bought a new stake in Avidity Biosciences in the fourth quarter worth $628,000. Deutsche Bank AG boosted its stake in Avidity Biosciences by 18.6% during the fourth quarter. Deutsche Bank AG now owns 193,586 shares of the biotechnology company's stock worth $5,629,000 after buying an additional 30,340 shares during the period. Ensign Peak Advisors Inc grew its holdings in Avidity Biosciences by 24.8% during the 4th quarter. Ensign Peak Advisors Inc now owns 27,950 shares of the biotechnology company's stock worth $813,000 after acquiring an additional 5,550 shares in the last quarter. Finally, Millennium Management LLC increased its position in Avidity Biosciences by 29.2% during the 4th quarter. Millennium Management LLC now owns 23,941 shares of the biotechnology company's stock valued at $696,000 after purchasing an additional 5,405 shares during the period.

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.

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