Lord Abbett & CO. LLC Increases Stake in Avidity Biosciences

In a recent filing with the Securities and Exchange Commission, Lord Abbett & CO. LLC has announced a significant increase in its stake in Avidity Biosciences, Inc. (NASDAQ:RNA). In the third quarter, the institutional investor raised its ownership by 30.1%, bringing the total number of shares owned to 539,207. This acquisition includes an additional 124,867 shares purchased during the period, depicting Lord Abbett's confidence in the biotechnology firm.

As per the latest report, Lord Abbett’s holdings represent approximately 0.45% of Avidity Biosciences, valued at around $24.77 million.

Recent Activity by Other Investors

Other institutional investors have also shown interest in Avidity Biosciences recently. Wellington Management Group LLP reported an 84.9% increase in its holdings, bringing their total shares to 7,030,949, worth approximately $322.93 million following an acquisition of 3,228,923 shares in the third quarter.

State Street Corp has similarly increased its stake by 41.7%, now holding 4,706,106 shares valued at $216.15 million after acquiring an additional 1,386,087 shares. In a related development, Janus Henderson Group PLC expanded its position by 33.9%, acquiring 1,239,323 additional shares to reach a total of 4,896,166 shares worth $224.77 million.

RA Capital Management L.P. and D. E. Shaw & Co. Inc. have also raised their stakes in Avidity Biosciences during the last quarter. RA Capital increased its holdings by 16.7%, now possessing 6,300,408 shares valued at $289.38 million, while D. E. Shaw raised its stake significantly by 2,263.7% during the second quarter.

Avidity Biosciences Stock Information

Avidity Biosciences opened at $32.49 on Monday, and the stock has experienced a notable range, with a fifty-two week low of $7.79 and a high of $56.00. At a market capitalization of $3.88 billion, the company exhibits a P/E ratio of -11.28 and a beta of 0.89. The stock has a fifty-day moving average of $43.72 and a two-hundred-day moving average of $42.19.

Earnings Report Highlights

Avidity Biosciences recently released its quarterly earnings on November 7, where it reported a loss of $0.65 per share, which was better than analysts' expectations of a $0.79 loss. The company had a return on equity of -27.66% and a considerable negative net margin of 2,772.45%. Revenue for the quarter was recorded at $2.34 million, falling short of the expected $7.09 million, with forecasts for a projected EPS of -2.89 for the current year.

Insider Trading Activities

Insider transactions reveal that CEO Sarah Boyce sold 32,880 shares recently at an average price of $44.00, totaling around $1.45 million. After this transaction, she now holds 234,663 shares valued at approximately $10.33 million, representing a decrease of 12.29% in her position. Another insider, W. Michael Flanagan, sold 24,000 shares at an average price of $35.77, reflecting a 21.94% drop in his ownership.

In total, insiders sold 174,866 shares worth over $7.58 million in the last quarter, leaving them with 3.68% ownership of the company’s stock.

Analyst Ratings and Predictions

Analysts have varying perspectives on Avidity Biosciences. Needham & Company LLC maintained a "buy" rating with a price target of $60.00. Other firms like Royal Bank of Canada and The Goldman Sachs Group have initiated coverage, giving the company an "outperform" rating with price targets set at $67.00 and $59.00, respectively. Cantor Fitzgerald also reemphasized a positive outlook with a price target of $96.00.

The consensus among ten analysts is a strong buy, with a collective price target of $63.60.

About Avidity Biosciences

Avidity Biosciences, Inc. is a biopharmaceutical company dedicated to developing innovative RNA therapeutics. The company's lead product candidate, AOC 1001, is in phase 1/2 trials targeting myotonic dystrophy type 1, a rare genetic muscle disease previously difficult to treat with RNA therapies.

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