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Avidity Biosciences Inc (RNA)
NASDAQ:RNA
US Market

Avidity Biosciences (RNA) AI Stock Analysis

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RN

Avidity Biosciences

(NASDAQ:RNA)

36Underperform
Avidity Biosciences is currently experiencing significant financial distress with persistent net losses and negative cash flows. Despite maintaining a strong equity position, the financial health of the company is reliant on future profitability improvements. Technical indicators reflect a bearish trend, and the stock's valuation metrics provide little incentive for investment due to negative earnings. The overall score indicates caution, with substantial risks outweighing potential benefits.
Positive Factors
Market Opportunity
Avidity's drugs could be first-in-disease for DM1 and FSHD, indicating a significant market opportunity.
Regulatory Approval
Avidity's main catalyst is the FDA's decision on FSHD regulatory pathway, whereby the base-case scenario assumes a full-approval pathway.
Negative Factors
Regulatory Challenges
The stock is expected to be driven by Ph1/2 OLE data from the del-zota DMD44 program.

Avidity Biosciences (RNA) vs. S&P 500 (SPY)

Avidity Biosciences Business Overview & Revenue Model

Company DescriptionAvidity Biosciences Inc is a bio-technology company. The company develops novel Antibody Oligonucleotide Conjugates therapies designed to overcome the current limitations of oligonucleotide therapies in order to treat a wide range of serious diseases. Its product candidate AOC 1001, is designed to treat a rare monogenic muscle disease.
How the Company Makes MoneyAvidity Biosciences generates revenue primarily through strategic collaborations and partnerships with larger pharmaceutical companies. These agreements often include upfront payments, milestone payments contingent on successful development progress, and potential royalties from product sales. Additionally, the company may receive research grants and funding from non-profit organizations or governmental bodies to support its innovative RNA-based therapeutic programs. The company's revenue model is highly dependent on the success of its research and development efforts and its ability to bring new therapies to market.

Avidity Biosciences Financial Statement Overview

Summary
Avidity Biosciences faces significant financial challenges with consistent net losses and negative cash flows, reflecting profitability and liquidity concerns. While the company has maintained strong equity levels and low leverage, primarily due to external financing, the sustainability of its financial health depends on improving operational performance and achieving profitability in the future.
Income Statement
32
Negative
Avidity Biosciences demonstrates a consistent negative net income and EBIT over the years, reflecting profitability challenges. The gross profit margin is 100% for the last reported year, suggesting that all revenue directly contributes to gross profit, but the high operating expenses lead to significant net losses. Revenue growth has been modest over the years, with a notable increase from 2023 to 2024, indicating some improvement in business development.
Balance Sheet
45
Neutral
The company maintains a strong equity base, with stockholders' equity significantly higher than its total debt, resulting in a low debt-to-equity ratio, which is a positive indicator. However, consistent net losses raise concerns about the sustainability of equity levels. The equity ratio remains high, suggesting financial stability in terms of asset financing through equity.
Cash Flow
28
Negative
Avidity Biosciences struggles with negative operating and free cash flows, reflecting challenges in generating cash from operations. The free cash flow to net income ratio indicates that cash outflows exceed net losses. Although financing activities provide additional cash, reliance on external funding may not be sustainable long-term.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
10.90M9.56M9.22M9.33M6.79M
Gross Profit
10.90M7.46M7.84M8.69M-30.82M
EBIT
-378.94M-235.60M-178.91M-118.05M-44.28M
EBITDA
-378.94M-233.50M-177.53M-117.41M-43.77M
Net Income Common Stockholders
-322.30M-212.22M-169.08M-117.37M-43.98M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.50B595.35M610.73M405.54M328.14M
Total Assets
1.56B628.55M638.80M427.58M333.90M
Total Debt
6.80M9.85M10.69M9.96M938.00K
Net Debt
-213.07M-175.23M-329.71M-395.58M-327.20M
Total Liabilities
138.94M127.79M60.73M46.15M27.68M
Stockholders Equity
1.42B500.76M578.08M381.43M306.22M
Cash FlowFree Cash Flow
-307.94M-123.29M-139.09M-98.55M-38.21M
Operating Cash Flow
-300.87M-119.06M-136.27M-94.81M-37.12M
Investing Cash Flow
-854.20M-130.07M-189.96M-82.52M-7.79M
Financing Cash Flow
1.19B93.86M346.17M176.32M272.04M

Avidity Biosciences Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.61
Price Trends
50DMA
30.90
Positive
100DMA
36.21
Negative
200DMA
38.67
Negative
Market Momentum
MACD
-0.41
Negative
RSI
56.94
Neutral
STOCH
75.85
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 32.61 is above the 20-day moving average (MA) of 30.70, above the 50-day MA of 30.90, and below the 200-day MA of 38.67, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 56.94 is Neutral, neither overbought nor oversold. The STOCH value of 75.85 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 80 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 (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PFPFE
72
Outperform
$147.29B18.459.05%6.50%8.77%272.80%
49
Neutral
$5.25B-93.03%-10.48%-18.79%
49
Neutral
$6.90B0.02-54.05%2.46%24.91%-3.14%
49
Neutral
$30.91B-414.62%22.97%38.54%
48
Neutral
$13.03B-28.77%-52.75%25.00%
47
Neutral
$2.07B-600.68%-98.62%-86.21%
RNRNA
36
Underperform
$3.56B-33.47%13.99%0.17%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RNA
Avidity Biosciences
32.61
8.64
36.05%
ALNY
Alnylam Pharma
242.43
93.90
63.22%
ARWR
Arrowhead Pharmaceuticals
15.77
-11.65
-42.49%
IONS
Ionis Pharmaceuticals
32.90
-9.28
-22.00%
PFE
Pfizer
25.60
-0.87
-3.29%
MRNA
Moderna
34.30
-69.16
-66.85%

Avidity Biosciences Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Avidity Biosciences Unveils Advances in Cardiology Research
Positive
Nov 12, 2024

Avidity Biosciences is making strides in precision cardiology with its development of AOC 1072 and AOC 1086, designed to target rare genetic cardiomyopathies by delivering siRNA directly to the heart muscle. These candidates demonstrated significant gene knockdown and safety in preclinical studies. The company also revealed next-generation RNA technology innovations promising enhanced delivery and durability, which could revolutionize treatment options for genetic cardiac diseases.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.