SAN DIEGO—Teresa McCarthy, Chief Human Resources Officer at Avidity Biosciences, Inc. (NASDAQ:RNA), recently executed a notable transaction involving the company's stock. On November 18, McCarthy sold 25,000 shares of Avidity Biosciences common stock at an average price of $41.14, totaling approximately $1.03 million. This transaction was part of a pre-established Rule 10b5-1 trading plan, which provides executives with a structured approach to buying and selling shares.
In addition to the sale, McCarthy exercised stock options to acquire 25,000 shares at a price of $14.22 per share. Following these transactions, McCarthy's total direct ownership stands at 94,018 shares. The sales were completed through multiple transactions, with prices ranging from $39.75 to $42.27 per share, according to the filing with the Securities and Exchange Commission.
These transactions are part of McCarthy's ongoing management of her holdings in Avidity Biosciences, a company focused on developing therapies for serious diseases.
In other recent news, Avidity Biosciences reported third-quarter 2024 revenues of $175.4 million, slightly exceeding the FactSet consensus. Goldman Sachs (NYSE:GS) maintained a Buy rating on the company, with a steady price target of $59.00. The firm is closely monitoring Avidity's commercial execution as it prepares for the launch of its major depressive disorder treatment. In addition, Avidity has expanded its sales force by 150 representatives, aiming to support the bipolar depression opportunity.
The U.S. Food and Drug Administration (FDA) lifted the partial clinical hold on Avidity's drug candidate, del-desiran, allowing the continuation of the Phase 3 HARBOR trial. The company also initiated a biomarker cohort for its Phase 1/2 FORTITUDE trial, evaluating delpacibart braxlosiran in individuals with facioscapulohumeral muscular dystrophy.
Avidity Biosciences announced a $250 million public offering of common stock, managed by Leerink Partners and TD Cowen, to support its clinical programs and advance its research and development. Goldman Sachs and TD Cowen reiterated their Buy rating on Avidity's stock, emphasizing the potential of its drugs del-brax and del-desiran. These are the latest developments in the company's progress.
InvestingPro Insights
Teresa McCarthy's recent stock transactions at Avidity Biosciences (NASDAQ:RNA) reflect a dynamic period for the company's shares. According to InvestingPro data, RNA has experienced a significant 631.16% price total return over the past year, with a particularly strong 49.28% gain in the last six months. This impressive performance aligns with McCarthy's decision to exercise options and sell shares, potentially capitalizing on the stock's upward trajectory.
Despite the recent positive price action, InvestingPro Tips highlight that RNA has taken a big hit over the last week, with a 16.86% decline. This short-term volatility could be a factor in the timing of McCarthy's transactions. Additionally, the company's financial health presents a mixed picture. While RNA holds more cash than debt on its balance sheet, suggesting financial stability, it's not currently profitable and is expected to see a drop in net income this year.
For investors seeking a deeper understanding of RNA's prospects, InvestingPro offers 11 additional tips, providing a comprehensive view of the company's financial position and market performance. These insights could be particularly valuable given the stock's high revenue valuation multiple and the analysts' expectations that the company won't be profitable this year.
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