Form 4: Avidity Biosciences CSO Sells Shares for Tax Obligations

Avidity Biosciences' Chief Scientific Officer, W. Michael Flanagan, sold shares to cover tax withholding obligations related to RSU vesting.

Summary

• W. Michael Flanagan, Chief Scientific Officer of Avidity Biosciences, Inc. (RNA), reported a sale of common stock.
• The transactions occurred on January 21, 2026, involving two separate sales.
• A total of 6,534 shares (3,976 and 2,558 shares) were sold at a price of $72.45 per share.
• These sales were non-discretionary 'sell-to-cover' transactions, mandated by the issuer's equity incentive plans to satisfy tax withholding obligations upon the vesting of Restricted Stock Units (RSUs) on January 20, 2026.
• The sales were executed pursuant to an instruction letter for automatic sale, intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).
• Following these transactions, Flanagan's direct beneficial ownership of common stock stands at 85,093 shares.

Sentiment

Score: 5

Explanation: Neutral. The transaction is a routine, non-discretionary sale to cover tax obligations related to RSU vesting, not indicative of management's sentiment on the company's future prospects.

Positives

• The RSU vesting indicates compensation earned by the executive, which is generally a positive for employee retention and motivation.
• The transaction was non-discretionary and pre-planned under Rule 10b5-1, indicating no change in management's discretionary sentiment towards the stock.

Negatives

• A reduction in the executive's direct beneficial ownership of common stock by 6,534 shares.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: A minor reduction in the executive's direct ownership, but the non-discretionary nature of the sale limits negative sentiment impact.
• Employees (specifically the reporting person): The RSU vesting represents compensation earned, which is a positive for the individual.

Key Dates

Keywords

Avidity Biosciences, RNA, Form 4, Insider Transaction, W. Michael Flanagan, Chief Scientific Officer, CSO, Stock Sale, RSU Vesting, Tax Withholding, Rule 10b5-1