In a recent move, Michael F. MacLean, the Chief Financial Officer of Avidity Biosciences, Inc. (NASDAQ:RNA), sold 75,000 shares of the company's common stock, garnering over $2.1 million. The transactions, which took place on May 14, were executed at weighted-average prices ranging from $28.11 to $28.60, culminating in an average price of $28.2806 per share.
This sale followed MacLean's acquisition of the same number of shares through an option exercise, which was priced at $8.82 per share, amounting to a total transaction value of approximately $661,500. It's important to note that these transactions were carried out under a Rule 10b5-1 trading plan, which had been previously adopted by MacLean on May 23, 2023. This plan allows company insiders to set up a predetermined schedule for buying and selling securities to avoid accusations of insider trading.
Post-transaction, MacLean's direct ownership in Avidity Biosciences stands at 44,093 shares of common stock. Additionally, the executed option pertains to a stock option right to buy, which is set to expire on May 14, 2030. All unexercised shares subject to this option are reported to be fully vested and exercisable as of the reporting date.
Investors often monitor insider buying and selling activities as they may provide insights into a company's financial health or the insiders' view of the company's future prospects. Avidity Biosciences, a biopharmaceutical company, is focused on the discovery and development of RNA-based therapeutics for the treatment of various diseases.
InvestingPro Insights
Following the recent insider transactions by Michael F. MacLean, CFO of Avidity Biosciences, Inc. (NASDAQ:RNA), market participants are evaluating the company's financial standing and future outlook. According to InvestingPro data, Avidity Biosciences currently holds a market capitalization of $2.75 billion. Despite a strong performance in share price over the last year, with a 162.19% return, the company's financial metrics reveal some challenges. The company's revenue for the last twelve months as of Q1 2024 stood at $10.87 million, with a notable quarterly revenue growth of 58.67%. However, the gross profit margin during the same period was significantly negative at -1832.24%, indicating operational inefficiencies.
InvestingPro Tips highlight that Avidity Biosciences has more liquid assets than short-term obligations, which could be seen as a positive sign of liquidity. On the other hand, analysts are not optimistic about the company's profitability in the near term, as net income is expected to drop this year, and the company is not anticipated to be profitable within the same timeframe. This aligns with the adjusted P/E ratio of -12.35, suggesting that investors are paying for a company that is not currently generating profits.
For those looking to delve deeper into Avidity Biosciences' financials and future prospects, InvestingPro offers additional insights. There are 12 more InvestingPro Tips available for Avidity Biosciences at https://www.investing.com/pro/RNA, which can provide further guidance for investors. To access these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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