Avidity Biosciences (RNA) AI Stock Analysis

• Market Cap: $3.79B
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: -17.87%
• EPS Growth: -1.89%
• Country: US
• Employees: 391
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.90
• Shares Outstanding: 120,538,360
• 10 Day Avg. Volume: 1,513,311
• 30 Day Avg. Volume: 1,494,424
• PEG Ratio: -0.47
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.32
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 20.42
• Enterprise Value/Gross Profit: 100.46
• Enterprise Value/Ebitda: -0.59
• 1Y Price Target: $64.74
• Price Target Upside: 105.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 53 Neutral
• Price Target: $32.00 ▲(1.75%Upside)

Avidity Biosciences' overall score reflects significant corporate developments with positive trial results, offset by financial struggles with profitability and cash flow. Technical indicators are neutral, while valuation challenges are typical for a biotech company in its growth phase.

Positive Factors

Clinical Development

RNA expects to set a new stage for what can be possible, noting consistency across endpoints and similar efficacy across ambulatory and non-ambulatory patients.

Market Position

RNA expressed confidence in being first-to-market for DM1, and sees a significant lead over competition.

Regulatory Progress

The company noted positive interactions with the FDA, maintaining the same group of reviewers, and expressed optimism about the regulatory path for rare diseases.

Negative Factors

Regulatory Challenges

Recent developments in the FDA administration have made the accelerated approval pathway less clear.

Regulatory Competition

Regulatory alignment is still needed with nearest competitor DYN, which could delay their application for accelerated approval after RNA's potential approval.

Trial Delays

Change in DYN's AA primary endpoint from splicing index to vHOT requires a modest increase in trial size, thus extending timeline by a few months.

Avidity Biosciences Business Overview & Revenue Model

Company Description

Avidity 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 Money

Avidity 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, which is common in the biotechnology sector due to high R&D expenses. The balance sheet reveals strong equity and low leverage, yet 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.93M	10.90M	9.56M	9.22M	9.33M	6.79M
Gross Profit	8.24M	10.90M	7.46M	7.84M	8.69M	-30.82M
EBITDA	-431.03M	-376.16M	-233.50M	-177.53M	-117.41M	-43.77M
Net Income	-369.22M	-322.30M	-212.22M	-169.08M	-117.37M	-43.98M
Balance Sheet
Total Assets	1.46B	1.56B	628.55M	638.80M	427.58M	333.90M
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.50B	595.35M	610.73M	405.54M	328.14M
Total Debt	5.97M	6.80M	9.85M	10.69M	9.96M	938.00K
Total Liabilities	130.35M	138.94M	127.79M	60.73M	46.15M	27.68M
Stockholders Equity	1.33B	1.42B	500.76M	578.08M	381.43M	306.22M
Cash Flow
Free Cash Flow	-365.22M	-307.94M	-123.29M	-139.09M	-98.55M	-38.21M
Operating Cash Flow	-355.32M	-300.87M	-119.06M	-136.27M	-94.81M	-37.12M
Investing Cash Flow	-664.27M	-854.20M	-130.07M	-189.96M	-82.52M	-7.79M
Financing Cash Flow	804.85M	1.19B	93.86M	346.17M	176.32M	272.04M

Avidity Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 31.45 is above the 20-day moving average (MA) of 29.84, above the 50-day MA of 30.64, and below the 200-day MA of 34.47, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 56.75 is Neutral, neither overbought nor oversold. The STOCH value of 83.76 is Negative, 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	69 Neutral	$3.92B	7.46	33.08%	―	91.12%	―
RYTM	62 Neutral	$5.66B	―	-418.97%	―	48.88%	39.30%
ACLX	58 Neutral	$3.79B	―	-35.56%	―	-41.66%	-180.15%
RNA	53 Neutral	$3.79B	―	-34.19%	―	-17.87%	-1.89%
Sector *	52 Neutral	$7.59B	0.30	-61.86%	2.27%	16.72%	1.10%
RARE	50 Neutral	$2.93B	―	-386.33%	―	33.46%	26.72%

Avidity Biosciences Corporate Events

Avidity Biosciences Holds 2025 Annual Stockholder Meeting

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.

Avidity Biosciences Launches Global Phase 3 Study

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.