Form 4: Avidity Biosciences Executive Sells Shares to Cover Tax Obligations

Teresa McCarthy, Chief Human Resources Officer of Avidity Biosciences, sold 7,778 shares of common stock to cover tax withholding obligations related to vested restricted stock units.

Summary

• On March 20, 2025, Teresa McCarthy, the Chief Human Resources Officer of Avidity Biosciences, sold 7,778 shares of the company's 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.
• The 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 sale was mandated by Avidity Biosciences' policy to cover tax obligations through a 'sell-to-cover' transaction, and McCarthy has an instruction letter for automatic sales under Rule 10b5-1.
• Following the transaction, McCarthy still beneficially owns 97,130 shares of Avidity Biosciences common stock.

Sentiment

Score: 5

Explanation: The document describes a routine transaction (sell-to-cover) related to executive compensation. It doesn't inherently indicate positive or negative sentiment about the company's prospects.

Industry Context

Executive stock sales are a common occurrence, particularly to cover tax obligations related to equity compensation. These transactions are closely monitored by investors for insights into executive sentiment and potential insider information, although sell-to-cover transactions are generally viewed as less informative since they are often mandated by company policy.

Comparison to Industry Standards

• Executive compensation practices, including the use of RSUs and PSUs, are standard across the biotechnology industry.
• Sell-to-cover policies are also common, ensuring that executives can meet their tax obligations without needing to liquidate other holdings.
• Comparing Avidity Biosciences' executive compensation structure and stock ownership with peers like Ionis Pharmaceuticals or Alnylam Pharmaceuticals would provide a broader context, but this information is not available in the document.

Stakeholder Impact

• The stock sale may have a minor, temporary impact on the stock price, but is unlikely to significantly affect shareholders due to its nature as a tax-related transaction.
• The transaction has no direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

Avidity Biosciences, Teresa McCarthy, stock sale, Form 4, RSUs, PSUs, sell-to-cover, tax withholding, RNA