Form 4: Avidity Biosciences CLO Sells Shares for Tax Obligations

Avidity Biosciences' Chief Legal Officer, John B. Moriarty, sold 2,374 shares of common stock at $72.23 per share to cover tax withholding obligations.

Summary

• John B. Moriarty, Chief Legal Officer of Avidity Biosciences, Inc. (RNA), reported a transaction involving the company's common stock.
• On January 7, 2026, Mr. Moriarty disposed of 2,374 shares of common stock at a price of $72.23 per share.
• The sale was a 'sell-to-cover' transaction, mandated by the Issuer's equity incentive plans to satisfy tax withholding obligations related to the vesting of Restricted Stock Units (RSUs) on January 6, 2026.
• This transaction was not a discretionary trade by Mr. Moriarty and was executed pursuant to an instruction letter intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).
• Following this transaction, Mr. Moriarty beneficially owns 74,557 shares of Avidity Biosciences common stock directly.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the transaction is a non-discretionary 'sell-to-cover' for tax purposes, which is a routine event and does not reflect management's discretionary view on the company's prospects.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Management Comments

• The sale represents the number of shares required to be sold by the Reporting Person to cover tax withholding obligations in connection with the vesting of RSUs on January 6, 2026, and the sale of the resulting shares of common stock on January 7, 2026.
• This sale is mandated by the Issuer's election under its equity incentive plans to require the satisfaction of tax withholding obligations to be funded by a 'sell-to-cover' transaction and does not represent a discretionary trade by the Reporting Person.
• The Reporting Person has executed an instruction letter for the automatic sale of such 'sell-to-cover' shares, intended to satisfy the affirmative defense conditions of Rule 10b5-1.

Industry Context

This Form 4 filing details a routine insider transaction for tax purposes and does not provide information related to broader industry trends or competitive landscape.

Stakeholder Impact

• Shareholders: The sale represents a minor, non-discretionary dilution of outstanding shares. Given its routine nature, the impact on shareholder sentiment or share price is expected to be minimal.
• Employees (specifically the reporting person): The transaction facilitates the satisfaction of tax obligations arising from equity compensation, which is a standard benefit for executives.

Key Dates

Keywords

Avidity Biosciences, RNA, Insider Trading, Form 4, Sell-to-Cover, Tax Withholding, RSU Vesting, John B. Moriarty, Chief Legal Officer, Biotechnology