Form 4: Avidity Biosciences' Chief Medical Officer Sells Shares to Cover Tax Obligations

Chief Medical Officer Steven George Hughes sold 9,578 shares of Avidity Biosciences stock to cover tax withholding obligations related to vested restricted stock units.

Summary

• On March 20, 2025, Steven George Hughes, Chief Medical Officer of Avidity Biosciences, sold 9,578 shares of common stock.
• The sale was executed at a weighted-average price of $31.0598 per share, with individual transactions ranging from $31.05 to $31.06.
• This transaction was to cover tax withholding obligations related to the vesting and settlement of 25,000 time-based restricted stock units (RSUs) that vested on March 19, 2025.
• These RSUs were initially granted as performance-based restricted stock units (PSUs) and converted to time-based RSUs after Avidity Biosciences achieved a performance objective on September 19, 2024.
• The sale was mandated by Avidity Biosciences' policy to cover tax obligations through a 'sell-to-cover' transaction, and Hughes has an instruction letter for automatic sales under Rule 10b5-1.
• Following the transaction, Hughes still beneficially owns 72,850 shares of Avidity Biosciences stock.

Sentiment

Score: 5

Explanation: The document describes a routine transaction (sell-to-cover) by an executive, which is neither particularly positive nor negative for the company's outlook.

Industry Context

Sales of shares to cover tax obligations upon vesting of restricted stock units are a common practice among corporate executives. This transaction reflects standard compensation practices and tax management strategies.

Key Dates

Keywords

Avidity Biosciences, Steven George Hughes, Chief Medical Officer, stock sale, Form 4, RSUs, PSUs, tax withholding, sell-to-cover, Rule 10b5-1