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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)

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Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
$42.00
▼(-4.93% 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 (RNA) vs. SPDR S&P 500 ETF (SPY)

Avidity Biosciences Business Overview & Revenue Model

Company DescriptionAvidity 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 MoneyAvidity 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
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.73M10.90M9.56M9.22M9.33M6.79M
Gross Profit9.91M10.90M7.46M7.84M8.69M-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 Assets1.37B1.56B628.55M638.80M427.58M333.90M
Cash, Cash Equivalents and Short-Term Investments1.18B1.50B595.35M610.73M405.54M328.14M
Total Debt5.13M6.80M9.85M10.69M11.73M938.00K
Total Liabilities176.26M138.94M127.79M60.73M46.15M27.68M
Stockholders Equity1.19B1.42B500.76M578.08M381.43M306.22M
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 Flow361.90M1.19B93.86M346.17M176.32M272.04M

Avidity Biosciences Technical Analysis

Technical Analysis Sentiment
Positive
Last Price44.18
Price Trends
50DMA
43.34
Positive
100DMA
37.29
Positive
200DMA
33.83
Positive
Market Momentum
MACD
-0.18
Negative
RSI
52.71
Neutral
STOCH
78.91
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 44.18 is above the 20-day moving average (MA) of 43.34, above the 50-day MA of 43.34, and above the 200-day MA of 33.83, indicating a bullish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 78.91 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$7.14B-17.01-45.80%59.77%-92.92%
58
Neutral
$5.01B9.04-304.62%96.00%
55
Neutral
$6.64B-32.21-137.04%53.55%30.87%
49
Neutral
$6.02B-13.43-18.96%-81.18%-69.19%
48
Neutral
$6.27B-37.76%1.23%-20.45%
45
Neutral
$2.92B-5.88-48.38%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RNA
Avidity Biosciences
44.18
-3.12
-6.60%
PTCT
PTC Therapeutics
63.02
27.92
79.54%
MRUS
Merus
94.15
42.37
81.83%
CRSP
Crispr Therapeutics AG
72.82
27.45
60.50%
RYTM
Rhythm Pharmaceuticals
97.23
47.60
95.91%
IMVT
Immunovant
16.73
-13.78
-45.17%

Avidity Biosciences Corporate Events

Private Placements and Financing
Avidity Biosciences Announces Major Stock Offering
Positive
Sep 12, 2025

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.

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: Sep 27, 2025