Form 4: Avidity Biosciences CEO Reports Stock Transactions

Avidity Biosciences President and CEO Sarah Boyce reported the vesting of performance-based restricted stock units, tax-related share withholding, and a gift of shares.

Summary

• Sarah Boyce, President and CEO of Avidity Biosciences, Inc., reported several transactions involving the company's common stock.
• On December 17, 2025, Boyce acquired 31,000 shares of common stock upon the vesting of performance-based restricted stock units (PSUs) at a price of $0.
• These PSUs were originally granted on October 30, 2024, and were accelerated and settled for tax planning purposes, remaining subject to recoupment under certain termination conditions.
• Also on December 17, 2025, 15,742 shares were disposed of at a price of $71.87 to cover tax withholding obligations related to the PSU settlement.
• On December 18, 2025, Boyce gifted 29,159 shares of common stock to a Donor Advised Fund at a price of $0.
• Following these transactions, Boyce's direct beneficial ownership stands at 291,970 shares.

Sentiment

Score: 6

Explanation: The filing reflects routine executive compensation events (PSU vesting) and personal financial planning (tax withholding, gift). The vesting of PSUs is a positive indicator of performance achievement, but the subsequent reduction in direct ownership due to tax and gifting offsets some of this positive sentiment from an ownership perspective. The recoupment clause is a minor risk but standard for such awards.

Positives

• Vesting of 31,000 performance-based restricted stock units (PSUs) indicates achievement of performance targets.

Negatives

• Disposal of 15,742 shares at $71.87 to cover tax withholding reduces direct ownership.
• Gift of 29,159 shares to a Donor Advised Fund further reduces direct ownership.

Risks

• The 31,000 shares acquired from PSU vesting remain subject to recoupment by the Issuer if the Reporting Person's employment is terminated by the Issuer for cause or by the Reporting Person without good reason.

Future Outlook

The filing does not contain specific forward-looking statements or guidance beyond the nature of the PSU settlement for tax planning purposes.

Industry Context

This Form 4 filing details routine insider transactions related to executive compensation and personal financial planning, which is common for executives in publicly traded biotechnology companies. It does not provide broader industry context.

Stakeholder Impact

• Shareholders: The transactions represent a slight decrease in direct beneficial ownership by the CEO, but the underlying PSU vesting indicates performance achievement. The overall impact on share price is likely minimal as these are routine insider transactions.
• Employees: The vesting of PSUs is part of executive compensation, which can be seen as a positive for employee morale if performance targets are met.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to executive compensation and personal financial planning. The vesting of performance-based restricted stock units is a positive sign of performance achievement, but the subsequent share disposals for tax purposes and gifting are neutral events from an investment perspective. There is no new material information that would fundamentally alter the investment thesis for Avidity Biosciences, hence a 'hold' recommendation is appropriate based solely on this filing.

Keywords

Avidity Biosciences, RNA, Sarah Boyce, Form 4, Insider Trading, Stock Transaction, PSU Vesting, Restricted Stock Units, Executive Compensation, Share Ownership