Avidity Biosciences (RNA) AI Stock Analysis

• Market Cap: $5.75B
• Dividend Yield: N/A
• Average Volume (3M): 3.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: 1.23%
• EPS Growth: -20.45%
• Country: US
• Employees: 391
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): -1.21
• Shares Outstanding: 128,653,340
• 10 Day Avg. Volume: 2,869,166
• 30 Day Avg. Volume: 3,470,807
• 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: 0.44
• Enterprise Value/Revenue: 233.32
• Enterprise Value/Gross Profit: 252.47
• Enterprise Value/Ebitda: -4.82
• 1Y Price Target: $67.82
• Price Target Upside: 46.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 63 Neutral
• Price Target: $49.00 ▲(5.72% Upside)

Avidity Biosciences' stock score is primarily driven by positive corporate events and strong technical indicators, suggesting potential for future growth. However, financial performance challenges and valuation concerns temper the overall score. The company's strategic developments and market positioning are promising, but operational improvements are needed to sustain long-term growth.

Positive Factors

Manufacturing Agreements

RNA entered into a 7-year commercial manufacturing agreement with Lonza, supporting its global approval strategy and ensuring future manufacturing requirements are met.

Regulatory Progress

RNA's alignment with the FDA on accelerated and full approval pathways for del-brax in FSHD is a positive development.

Strategic Interest

The attention of a potential strategic match has sent the stock up considerably, indicating strong market interest.

Negative Factors

Earnings Miss

Net loss per share was ($1.21) compared to a consensus of ($0.96), showing weaker than expected financial results.

Financial Performance

RNA reported a 2Q25 net loss of $157.3M with a significant increase in R&D expenses, indicating weaker than expected financial performance.

Operational Costs

RNA reported a significant increase in R&D expenses, impacting its net loss and financial performance.

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 shows revenue growth but struggles with profitability and cash flow. The balance sheet is strong with high equity and low leverage, yet persistent negative net income and cash flow deficits pose risks.

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	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: 46.35
• 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 46.35 is above the 20-day moving average (MA) of 42.61, above the 50-day MA of 35.73, and above the 200-day MA of 33.57, indicating a bullish trend. The MACD of 2.95 indicates Positive momentum. The RSI at 68.29 is Neutral, neither overbought nor oversold. The STOCH value of 50.66 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
ACLX	64 Neutral	$3.99B	―	-42.75%	―	-60.63%	-216.87%
RNA	63 Neutral	$5.75B	―	-37.76%	―	1.23%	-20.45%
PTCT	58 Neutral	$3.89B	7.25	33.08%	―	96.00%	―
RYTM	55 Neutral	$6.75B	―	-1334.54%	―	53.55%	30.87%
Sector *	51 Neutral	$7.82B	-0.16	-39.78%	2.19%	21.38%	-1.56%
RARE	49 Neutral	$2.84B	―	-182.60%	―	26.77%	24.18%

Avidity Biosciences Corporate Events

Avidity Biosciences Signs Manufacturing Agreement with Lonza

On August 1, 2025, Avidity Biosciences entered into a Manufacturing Services Agreement with Lonza to produce drug substances and products for future commercial use, committing to purchase approximately $620 million in products from 2026 to 2028. This agreement supports Avidity’s preparation for potential product launches, as the company progresses with its RNA therapeutic programs, including three potential BLA submissions within a year. Avidity’s strong financial position, with cash reserves expected to fund operations until mid-2027, underpins its readiness for global commercialization starting in 2026.

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 Gains FDA Breakthrough Therapy Designation

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.

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.