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Avidity Biosciences Inc (RNA)
NASDAQ:RNA
US Market
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Avidity Biosciences (RNA) AI Stock Analysis

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RNA

Avidity Biosciences

(NASDAQ:RNA)

Rating:58Neutral
Price Target:
$38.00
▲(5.79%Upside)
The overall stock score reflects a mix of strengths and challenges. The company's recent regulatory milestones and positive market momentum are significant positives. However, financial performance, including negative earnings and cash flow struggles, weighs down the score. Valuation concerns due to negative earnings further impact the overall assessment.
Positive Factors
Competitive Advantage
RNA expressed confidence in being first-to-market for DM1, and sees a significant lead over competition.
Regulatory Approval
The company is targeting three regulatory approval filings, highlighting its goal to be a leader in the muscular dystrophy space.
Negative Factors
Regulatory Challenges
Recent developments in the FDA administration have made the accelerated approval pathway less clear.
Trial Delays
Change in DYN's AA primary endpoint requires a modest increase in trial size, thus extending timeline by a few months.

Avidity Biosciences (RNA) vs. SPDR S&P 500 ETF (SPY)

Avidity Biosciences Business Overview & Revenue Model

Company DescriptionAvidity Biosciences is a biopharmaceutical company operating in the healthcare sector, primarily focused on developing therapies using their proprietary Antibody Oligonucleotide Conjugates (AOCs) platform. AOCs are designed to treat a range of serious diseases by delivering synthetic oligonucleotides directly to target tissues. The company is dedicated to advancing innovative treatments for genetic diseases, leveraging its expertise in oligonucleotide therapies to improve patient outcomes.
How the Company Makes MoneyAvidity Biosciences generates revenue through a combination of strategic partnerships, collaborations, and potential future product sales. The company collaborates with industry leaders to advance its AOC technology and pipeline, receiving milestone payments and research funding as part of these partnerships. Additionally, as Avidity advances its clinical development programs, it aims to generate revenue from the commercialization of its proprietary therapies. The company may also benefit from licensing agreements and royalties related to its technology and products, contributing to its earnings.

Avidity Biosciences Financial Statement Overview

Summary
Avidity Biosciences is experiencing revenue growth but struggles with profitability and cash flow, common in the biotechnology sector due to high R&D expenses. The balance sheet reveals strong equity and low leverage, yet the persistent negative net income and cash flow deficits pose risks. The company may need to focus on improving operational efficiencies and managing its cash flow to enhance financial health.
Income Statement
38
Negative
Avidity Biosciences shows a consistent pattern of revenue growth with a significant increase since 2020. However, the company faces challenges with negative net income and declining profit margins. The EBIT and EBITDA margins are negative, reflecting operational inefficiencies. Despite revenue growth, profitability remains a concern due to high operating losses.
Balance Sheet
45
Neutral
The company's balance sheet highlights a strong equity position with a high equity ratio, indicating financial stability. However, the debt-to-equity ratio is low due to minimal debt, which is a positive aspect. Yet, the negative return on equity due to recurring losses suggests that the company is not generating sufficient returns on its equity base.
Cash Flow
42
Neutral
Operating cash flow remains negative, indicating challenges in generating cash from core operations. The free cash flow has deteriorated over the periods, although the company has managed significant financing inflows, likely to support ongoing operations. The ratios of operating and free cash flow to net income are unfavorable, reflecting ongoing cash flow struggles.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.90M9.56M9.22M9.33M6.79M
Gross Profit10.90M7.46M7.84M8.69M-30.82M
EBITDA-376.16M-233.50M-177.53M-117.41M-43.77M
Net Income-322.30M-212.22M-169.08M-117.37M-43.98M
Balance Sheet
Total Assets1.56B628.55M638.80M427.58M333.90M
Cash, Cash Equivalents and Short-Term Investments1.50B595.35M610.73M405.54M328.14M
Total Debt6.80M9.85M10.69M9.96M938.00K
Total Liabilities138.94M127.79M60.73M46.15M27.68M
Stockholders Equity1.42B500.76M578.08M381.43M306.22M
Cash Flow
Free Cash Flow-307.94M-123.29M-139.09M-98.55M-38.21M
Operating Cash Flow-300.87M-119.06M-136.27M-94.81M-37.12M
Investing Cash Flow-854.20M-130.07M-189.96M-82.52M-7.79M
Financing Cash Flow1.19B93.86M346.17M176.32M272.04M

Avidity Biosciences Technical Analysis

Technical Analysis Sentiment
Positive
Last Price35.92
Price Trends
50DMA
32.04
Positive
100DMA
30.79
Positive
200DMA
33.66
Positive
Market Momentum
MACD
1.45
Negative
RSI
60.60
Neutral
STOCH
60.25
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 35.92 is above the 20-day moving average (MA) of 33.49, above the 50-day MA of 32.04, and above the 200-day MA of 33.66, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 60.60 is Neutral, neither overbought nor oversold. The STOCH value of 60.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNA.

Avidity Biosciences Risk Analysis

Avidity Biosciences disclosed 65 risk factors in its most recent earnings report. Avidity Biosciences reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Avidity Biosciences Peers Comparison

Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$4.13B8.0133.08%91.12%
62
Neutral
$5.80B-418.97%48.88%39.30%
58
Neutral
$4.33B-34.19%-17.87%-1.89%
58
Neutral
$3.92B-35.56%-41.66%-180.15%
48
Neutral
$2.69B-386.33%33.46%26.72%
46
Neutral
C$178.93M-3.50-23.31%3.24%16.92%0.47%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RNA
Avidity Biosciences
35.92
-6.28
-14.88%
PTCT
PTC Therapeutics
52.13
21.13
68.16%
RARE
Ultragenyx Pharmaceutical
28.44
-20.64
-42.05%
RYTM
Rhythm Pharmaceuticals
88.30
44.27
100.55%
ACLX
Arcellx Inc
71.14
20.05
39.24%

Avidity Biosciences Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Avidity Biosciences Gains FDA Breakthrough Therapy Designation
Positive
Jul 23, 2025

On July 23, 2025, Avidity Biosciences announced that the FDA granted Breakthrough Therapy designation to delpacibart zotadirsen for treating Duchenne muscular dystrophy in patients with mutations amenable to exon 44 skipping. Avidity plans to submit a Biologics License Application for this therapy by the end of 2025, which could significantly impact its operations and market positioning.

The most recent analyst rating on (RNA) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Avidity Biosciences Holds 2025 Annual Stockholder Meeting
Neutral
Jun 10, 2025

At Avidity Biosciences‘ 2025 Annual Meeting of Stockholders held on June 10, 2025, three Class II directors were elected for a three-year term, and Deloitte & Touche, LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, the compensation of the company’s named executive officers was approved on an advisory basis. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future direction and stakeholder relations.

The most recent analyst rating on (RNA) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Avidity Biosciences Launches Global Phase 3 Study
Positive
Jun 9, 2025

On June 9, 2025, Avidity Biosciences announced the initiation of a global Phase 3 study for del-brax, following FDA feedback on an accelerated approval pathway for treating FSHD. The company also revealed positive topline data from its Phase 1/2 FORTITUDE trial, showing improvements in functional mobility, muscle strength, and quality of life, alongside favorable safety results. These developments potentially enhance Avidity’s market positioning and offer hope for FSHD patients.

The most recent analyst rating on (RNA) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Avidity Biosciences stock, see the RNA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 26, 2025