Michael F. MacLean, the Chief Financial Officer of Avidity Biosciences, Inc. (NASDAQ:RNA), has sold 104,245 shares of the company's common stock on June 12, 2024, for a total transaction value exceeding $3.7 million. The shares were sold at a weighted average price of $35.7153, with individual transactions occurring at prices ranging from $34.51 to $37.57.
On the same day, MacLean also acquired 104,245 shares of Avidity Biosciences' common stock at $8.82 per share, amounting to a total transaction value of approximately $919,440. This transaction was part of a pre-arranged trading plan under Rule 10b5-1, which was adopted on May 23, 2023.
The trading plan allows company insiders to set up a predetermined schedule for buying and selling shares at a time when they are not in possession of material non-public information. This ensures that their trades are executed in accordance with insider trading laws and regulations.
Following the sale, MacLean's direct ownership in the company has decreased to 44,093 shares of common stock. However, the CFO still holds 65,182 derivative securities in the form of stock options, which are fully vested and exercisable. These options have an expiration date of May 14, 2030, and were also exercised as part of the same Rule 10b5-1 trading plan.
Investors and shareholders of Avidity Biosciences may request additional details on the number of shares sold at each price within the range stated in the transactions from the company, as noted in the footnotes of the SEC filing.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, which was submitted on June 14, 2024.
In other recent news, Avidity Biosciences has seen a series of positive developments. The company's drug candidate, del-brax, showed promising early-stage results in a Facioscapulohumeral Muscular Dystrophy (FSHD) treatment study, leading BofA Securities to raise its price target for Avidity from $40.00 to $45.00. In addition, the company announced plans for a $300 million public offering of its common stock to fund further development of its clinical programs and research.
Avidity also received Breakthrough Therapy designation from the U.S. Food and Drug Administration for its lead investigational drug, delpacibart etedesiran, for the treatment of myotonic dystrophy type 1. The board of directors at Avidity has been expanded with the appointment of Simona Skerjanec, a pharmaceutical industry veteran.
Wells Fargo (NYSE:WFC) reiterated its Overweight rating on Avidity Biosciences, maintaining a steady price target of $50.00. Similarly, Cantor Fitzgerald initiated coverage on Avidity Biosciences with an Overweight rating, indicating potential for outperformance. These recent developments mark a significant period for Avidity Biosciences.
InvestingPro Insights
As Avidity Biosciences' CFO Michael F. MacLean engages in significant stock transactions, investors are examining the company's financial health and market performance with keen interest. According to InvestingPro data, Avidity Biosciences currently holds a market capitalization of $3.81 billion, and despite a challenging gross profit margin, the company has demonstrated a notable 225.18% return over the last year.
One of the InvestingPro Tips highlights that Avidity Biosciences has more liquid assets than short-term obligations, which may provide some reassurance to investors concerned about the company's immediate financial stability. Additionally, the stock's recent performance shows a significant return over the last week, with a 49.02% price total return, aligning with the CFO's timing in selling shares. However, it's important to note that the stock is currently trading at a high revenue valuation multiple, suggesting a premium price compared to its revenue.
For investors seeking a deeper dive into Avidity Biosciences' financials and stock performance, InvestingPro offers an expansive list of tips, including 13 additional InvestingPro Tips available at: https://www.investing.com/pro/RNA. These tips could provide valuable insights, especially when considering the company's strategic financial moves and market activity. To access these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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