Avidity Biosciences (RNA) AI Stock Analysis

• Market Cap: $7.16B
• Dividend Yield: N/A
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: 1.23%
• EPS Growth: -20.45%
• Country: US
• Employees: 391
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.21
• Shares Outstanding: 145,903,340
• 10 Day Avg. Volume: 1,641,858
• 30 Day Avg. Volume: 2,939,152
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 233.32
• Enterprise Value/Gross Profit: 252.47
• Enterprise Value/Ebitda: -4.82
• 1Y Price Target: $68.40
• Price Target Upside: 45.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 48 Neutral
• Price Target: $42.00 ▼(-10.37% Downside)

Avidity Biosciences faces significant financial challenges, particularly in profitability and cash flow, which heavily impact its overall score. The technical analysis provides mixed signals, with some bearish momentum. Valuation concerns are evident due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest caution for potential investors.

Positive Factors

Revenue Growth

Avidity Biosciences' strong revenue growth indicates increasing demand and successful market penetration, which can drive long-term business expansion and stability.

Gross Profit Margin

High gross profit margins suggest effective cost management and pricing power, which can support sustainable profitability as the company scales.

Low Debt Levels

Minimal leverage reduces financial risk and enhances flexibility, allowing Avidity Biosciences to invest in growth opportunities without significant debt burden.

Negative Factors

Negative Cash Flow

Negative cash flow indicates challenges in converting revenue to cash, which can strain operations and limit the ability to fund future growth initiatives.

Profitability Challenges

Ongoing operational losses highlight difficulties in achieving profitability, which could hinder long-term financial health and shareholder value creation.

Negative Return on Equity

Negative ROE suggests inefficiencies in generating returns on shareholder investments, which may deter potential investors and affect capital raising efforts.

Avidity Biosciences Business Overview & Revenue Model

Company Description

Avidity Biosciences, Inc., a biopharmaceutical company, engages in the development of oligonucleotide-based therapies. It develops antibody oligonucleotide conjugates (AOC) that are designed to treat a range of serious diseases. The company's lead product candidate AOC 1001 is used for the treatment of myotonic dystrophy type 1, a rare monogenic muscle disease; AOC 1044 for the treatment of Duchenne Muscular Dystrophy; and AOC 1020 designed to treat facioscapulohumeral muscular dystrophy which are in preclinical stage. It also offers Lumizyme therapy for Pompe diseases. Avidity Biosciences, Inc. was incorporated in 2012 and is headquartered in San Diego, California.

How the Company Makes Money

Avidity Biosciences generates revenue through a combination of research and development collaborations, partnerships, and potential product sales. The company often enters into strategic collaborations with larger pharmaceutical companies, which may provide upfront payments, milestone payments upon the achievement of certain development stages, and royalties on future sales of any products that result from these partnerships. Additionally, Avidity may receive funding through government grants and public offerings, as well as through the commercialization of its proprietary therapies once they receive regulatory approval. The success of its revenue model is significantly influenced by the advancement of its product pipeline and the establishment of new partnerships within the biotechnology and pharmaceutical sectors.

Avidity Biosciences Financial Statement Overview

Summary

Avidity Biosciences demonstrates strong gross profit margins and revenue growth, but faces significant challenges with profitability and cash flow. The low debt levels provide some financial stability, yet the negative return on equity and operating cash flow highlight ongoing operational difficulties. The company needs to focus on improving profitability and cash flow to enhance its financial health.

Income Statement

Avidity Biosciences shows a strong gross profit margin of 92.41% in the TTM, indicating efficient cost management. However, the company is struggling with negative net profit margins and EBIT margins, reflecting significant operational losses. Revenue growth is positive at 20.19% in the TTM, suggesting some potential for future improvement.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.0043, indicating minimal leverage and financial risk. However, the return on equity is negative, reflecting ongoing losses and challenges in generating shareholder value. The equity ratio is strong, showing a solid capital structure.

Cash Flow

Avidity Biosciences has a negative operating cash flow, which is concerning for sustainability. The free cash flow growth rate is positive at 37.64% in the TTM, but the company still faces challenges in converting net income into cash flow, as indicated by the high free cash flow to net income ratio.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.73M	10.90M	9.56M	9.22M	9.33M	6.79M
Gross Profit	9.91M	10.90M	7.46M	7.84M	8.69M	-30.82M
EBITDA	-519.55M	-376.16M	-233.50M	-177.53M	-117.41M	-43.77M
Net Income	-455.74M	-322.30M	-212.22M	-174.00M	-118.01M	-44.35M
Balance Sheet
Total Assets	1.37B	1.56B	628.55M	638.80M	427.58M	333.90M
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.50B	595.35M	610.73M	405.54M	328.14M
Total Debt	5.13M	6.80M	9.85M	10.69M	11.73M	938.00K
Total Liabilities	176.26M	138.94M	127.79M	60.73M	46.15M	27.68M
Stockholders Equity	1.19B	1.42B	500.76M	578.08M	381.43M	306.22M
Cash Flow
Free Cash Flow	-502.70M	-307.94M	-123.29M	-139.09M	-98.55M	-38.21M
Operating Cash Flow	-489.98M	-300.87M	-119.06M	-136.27M	-94.81M	-37.12M
Investing Cash Flow	-203.91M	-854.20M	-130.07M	-189.96M	-82.52M	-7.79M
Financing Cash Flow	361.90M	1.19B	93.86M	346.17M	176.32M	272.04M

Avidity Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNA, the sentiment is Positive. The current price of 46.86 is above the 20-day moving average (MA) of 46.76, above the 50-day MA of 45.72, and above the 200-day MA of 35.04, indicating a bullish trend. The MACD of 1.25 indicates Positive momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 36.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNA.

Avidity Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTCT	61 Neutral	$5.43B	9.63	―	―	96.00%	―
RYTM	55 Neutral	$7.12B	―	-1334.54%	―	53.55%	30.87%
MRUS	54 Neutral	$7.17B	―	-48.54%	―	59.77%	-92.92%
CRSP	54 Neutral	$6.58B	―	-25.34%	―	-81.18%	-69.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RNA	48 Neutral	$7.16B	―	-37.76%	―	1.23%	-20.45%
IMVT	45 Neutral	$3.35B	―	-77.58%	―	―	-48.38%

Avidity Biosciences Corporate Events

Avidity Biosciences Announces Major Stock Offering

On September 11, 2025, Avidity Biosciences announced an underwriting agreement to issue and sell 15,000,000 shares of its common stock at $40.00 per share, with underwriters purchasing at $37.70 per share. The offering, expected to close on September 15, 2025, could generate approximately $564.0 million, or $648.8 million if an additional option is exercised. The proceeds will support the development of Avidity’s clinical programs, commercial infrastructure, and research and development of its AOC platform.

The most recent analyst rating on (RNA) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.