Avidity Biosciences (RNA) AI Stock Analysis

• Market Cap: $4.05B
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: -17.87%
• EPS Growth: -1.89%
• Country: US
• Employees: 391
• Sector: Healthcare
• Sector Strength: 44
• Industry: Biotechnology
• EPS (TTM): -0.90
• Shares Outstanding: 120,538,360
• 10 Day Avg. Volume: 1,587,839
• 30 Day Avg. Volume: 1,381,396
• 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: 0.20
• Enterprise Value/Revenue: 20.42
• Enterprise Value/Gross Profit: 100.46
• Enterprise Value/Ebitda: -0.59
• 1Y Price Target: $67.08
• Price Target Upside: 109.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 58 Neutral
• Price Target: $34.00 ▲(6.22%Upside)

Avidity Biosciences' overall score is bolstered by positive corporate events and strong technical momentum, partially offset by weak financial performance and valuation. The ongoing clinical trials and potential for accelerated drug approval are significant positives, while financial challenges remain a concern.

Positive Factors

Clinical Trial Success

Del-brax achieved statistically significant cDUX reduction vs. placebo, indicating a high likelihood of meeting the primary endpoint in the biomarker study.

Commercial Opportunity

FSHD represents an attractive commercial opportunity given RNA would be first to market.

Regulatory Approval

FDA's endorsement of Del-brax AA pathway is a big win for RNA, enabling a submission.

Negative Factors

Data Interpretation Challenges

Pooling of data across doses, small N, and varying dosing schedules prevent a clear understanding of Del-brax's magnitude of effect.

Regulatory Timeline

RNA expects to report topline data from the biomarker cohort in the second quarter of 2026, followed by a BLA filing anticipated later, which indicates a clear timeline for regulatory progress.

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 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
	EBIT
-433.27M	-378.94M	-235.60M	-178.91M	-118.05M	-44.28M
	EBITDA
-431.03M	-376.16M	-233.50M	-177.53M	-117.41M	-43.77M
	Net Income Common Stockholders
-369.22M	-322.30M	-212.22M	-169.08M	-117.37M	-43.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.38B	1.50B	595.35M	610.73M	405.54M	328.14M
	Total Assets
1.46B	1.56B	628.55M	638.80M	427.58M	333.90M
	Total Debt
5.97M	6.80M	9.85M	10.69M	9.96M	938.00K
	Net Debt
-248.23M	-213.07M	-175.23M	-329.71M	-395.58M	-327.20M
	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: Neutral
• Last Price: 32.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNA, the sentiment is Neutral. The current price of 32.01 is above the 20-day moving average (MA) of 31.87, above the 50-day MA of 29.81, and below the 200-day MA of 35.74, indicating a neutral trend. The MACD of 1.07 indicates Negative momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 33.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RNA.

Avidity Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTCT	70 Outperform	$4.10B	7.95	33.08%	―	91.12%	―
RYTM	65 Neutral	$4.29B	―	-418.97%	―	48.88%	39.30%
RNA	58 Neutral	$4.05B	―	-34.19%	―	-17.87%	-1.89%
ACLX	58 Neutral	$3.67B	―	-35.56%	―	-41.66%	-180.15%
SWTX	54 Neutral	$3.52B	―	-51.57%	―	730.42%	31.63%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
RARE	46 Neutral	$3.55B	―	-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.

Avidity Biosciences Announces Positive EXPLORE44 Trial Results

On March 17, 2025, Avidity Biosciences announced the topline data from its Phase 1/2 EXPLORE44 trial for delpacibart zotadirsen (del-zota) in patients with Duchenne muscular dystrophy amenable to exon 44 skipping. The trial results showed consistent delivery of PMOs to skeletal muscle, increased exon 44 skipping, enhanced dystrophin production, and reduced creatine kinase levels, demonstrating favorable safety and tolerability. The company plans to submit a Biologics License Application by the end of 2025, aiming for accelerated approval in the U.S.