Avidity Biosciences (NASDAQ:RNA) Stock Price Up 9.6% - Still a Buy?

Key Points

• Avidity Biosciences shares surged by 9.6% to $36.38, with a trading volume that exceeded the average by 24% during mid-day trading.
• Analysts have a strong positive outlook, with sixteen recommending a "buy" rating and a consensus price target of $66.35.
• The company reported a quarterly EPS of ($0.90), missing estimates, and indicates projected earnings of -2.89 EPS for the current year.
• Insiders have recently sold shares, with a notable sale resulting in a decrease of ownership by nearly 20% for one insider.

Avidity Biosciences, Inc. (NASDAQ:RNA - Get Free Report)'s stock price shot up 9.6% on Friday . The company traded as high as $36.39 and last traded at $36.38. 1,920,110 shares changed hands during trading, an increase of 24% from the average session volume of 1,543,616 shares. The stock had previously closed at $33.21.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on RNA. Needham & Company LLC reaffirmed a "buy" rating and set a $60.00 price objective on shares of Avidity Biosciences in a research report on Wednesday, April 9th. Barclays upped 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. Cantor Fitzgerald restated an "overweight" rating and issued a $96.00 target price on shares of Avidity Biosciences in a research report on Friday, June 27th. Wolfe Research initiated coverage on shares of Avidity Biosciences in a research report on Tuesday, June 17th. They issued an "outperform" rating and a $55.00 target price for the company. Finally, The Goldman Sachs Group upgraded shares of Avidity Biosciences to a "buy" rating and set a $55.00 target price for the company in a research report on Thursday, July 10th. Sixteen investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Buy" and an average price target of $66.35.

Avidity Biosciences Stock Up 4.0%

The firm has a market capitalization of $4.33 billion, a price-to-earnings ratio of -11.98 and a beta of 0.91. The firm's 50 day moving average is $31.63 and its 200 day moving average is $30.60.

Avidity Biosciences (NASDAQ:RNA - Get Free Report) last released its earnings results on Thursday, May 8th. The biotechnology company reported ($0.90) EPS for the quarter, missing the consensus estimate of ($0.88) by ($0.02). Avidity Biosciences had a negative net margin of 4,136.00% and a negative return on equity of 26.96%. The business had revenue of $1.60 million for the quarter, compared to analyst estimates of $2.63 million. On average, sell-side analysts predict that Avidity Biosciences, Inc. will post -2.89 earnings per share for the current year.

Insider Activity at Avidity Biosciences

In related news, insider W. Michael Flanagan sold 20,000 shares of the company's stock in a transaction that occurred on Wednesday, June 11th. The shares were sold at an average price of $32.88, for a total value of $657,600.00. Following the completion of the sale, the insider owned 80,195 shares in the company, valued at approximately $2,636,811.60. This represents a 19.96% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Kathleen P. Gallagher sold 911 shares of the company's stock in a transaction that occurred on Tuesday, June 17th. The shares were sold at an average price of $30.24, for a total transaction of $27,548.64. Following the completion of the sale, the insider owned 50,392 shares of the company's stock, valued at approximately $1,523,854.08. This trade represents a 1.78% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 32,661 shares of company stock valued at $1,066,319. Company insiders own 3.83% of the company's stock.

Institutional Investors Weigh In On Avidity Biosciences

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD lifted its position in Avidity Biosciences by 2.7% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 11,338,098 shares of the biotechnology company's stock worth $334,701,000 after buying an additional 295,275 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of Avidity Biosciences by 19.5% during the 1st quarter. Wellington Management Group LLP now owns 9,684,556 shares of the biotechnology company's stock worth $285,888,000 after purchasing an additional 1,578,459 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Avidity Biosciences by 2.2% during the 4th quarter. Vanguard Group Inc. now owns 9,431,911 shares of the biotechnology company's stock worth $274,280,000 after purchasing an additional 205,027 shares during the last quarter. Avoro Capital Advisors LLC increased its stake in shares of Avidity Biosciences by 9.1% during the 4th quarter. Avoro Capital Advisors LLC now owns 7,500,000 shares of the biotechnology company's stock worth $218,100,000 after purchasing an additional 625,000 shares during the last quarter. Finally, Janus Henderson Group PLC increased its stake in shares of Avidity Biosciences by 44.1% during the 4th quarter. Janus Henderson Group PLC now owns 7,053,010 shares of the biotechnology company's stock worth $205,134,000 after purchasing an additional 2,156,844 shares during 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.