Form 4: Avidity Biosciences CMO Sells Shares for Tax Obligations

Avidity Biosciences' Chief Medical Officer, Steven George Hughes, sold 2,373 shares of common stock at $72.23 per share to cover tax withholding obligations related to RSU vesting.

Summary

• Steven George Hughes, Chief Medical Officer of Avidity Biosciences, Inc. (RNA), reported a transaction on January 7, 2026.
• The transaction involved the sale of 2,373 shares of Avidity Biosciences common stock.
• The shares were sold at a price of $72.23 per share.
• This sale was a 'sell-to-cover' transaction, mandated by the issuer's equity incentive plans to satisfy tax withholding obligations associated with the vesting of Restricted Stock Units (RSUs) on January 6, 2026.
• The transaction was not a discretionary trade by Mr. Hughes and was executed pursuant to an instruction letter intended to satisfy the affirmative defense conditions of Rule 10b5-1.
• Following this transaction, Mr. Hughes beneficially owns 36,494 shares of common stock directly.

Sentiment

Score: 5

Explanation: The transaction is a non-discretionary 'sell-to-cover' for tax obligations, which is a neutral event and does not reflect management's sentiment about the company's future prospects.

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 and the sale of the resulting shares of common stock.
• 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 filing details a routine insider transaction related to equity compensation and tax obligations, which is common across publicly traded companies, particularly in the biotechnology sector where equity incentives are a significant component of executive compensation.

Corporate Governance

Stakeholder Impact

• Shareholders: Minimal direct impact as this is a routine, non-discretionary transaction for tax purposes and does not signal a change in insider sentiment or company fundamentals.

Key Dates

Keywords

Avidity Biosciences, RNA, Form 4, Insider Transaction, Sell-to-Cover, RSU Vesting, Tax Withholding, Steven George Hughes, Chief Medical Officer, Equity Compensation