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

W. Michael Flanagan, Chief Scientific Officer of Avidity Biosciences, sold 11,780 shares of common stock to cover tax withholding obligations related to vested restricted stock units.

Summary

• On March 20, 2025, W. Michael Flanagan, the Chief Scientific Officer of Avidity Biosciences, sold 11,780 shares of common stock.
• The sale was executed to cover tax withholding obligations related to the vesting and settlement of 25,000 time-based restricted stock units (RSUs) on March 19, 2025.
• These RSUs were initially granted as performance-based restricted stock units (PSUs) and converted to time-based RSUs after a performance objective was achieved on September 19, 2024.
• The shares were sold at a weighted-average price of $31.0584, with individual transactions ranging from $30.96 to $31.06.
• The sale was mandated by Avidity Biosciences' policy to cover tax withholding obligations through a 'sell-to-cover' transaction, and Flanagan has an instruction letter for automatic sales under Rule 10b5-1.
• Following the transaction, Flanagan still beneficially owns 80,195 shares of Avidity Biosciences.

Sentiment

Score: 5

Explanation: The document describes a routine stock sale to cover tax obligations, which is neither particularly positive nor negative.

Industry Context

Sales of shares to cover tax obligations upon vesting of restricted stock units are a common practice among company executives. This transaction is not necessarily indicative of the executive's sentiment towards the company's future prospects.

Stakeholder Impact

• The sale of shares could have a minor, temporary impact on shareholders due to the increased supply of shares on the market.

Key Dates

Keywords

Avidity Biosciences, Flanagan, Chief Scientific Officer, stock sale, Form 4, RSUs, PSUs, tax withholding, sell-to-cover, Rule 10b5-1