Chart Of The Day: Avidity Biosciences

Chart Of The Day: Avidity Biosciences – Something’s Up?

Jun 14, 2024Jeremy ParkinsonFinance, No picture0

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Author’s Note: Every once in a while I see a stock where most analysts predict decreasing Revenue and Earnings but they all seem to recommend it anyway — Here is a good example. Please tell me what I’m missing.The Chart of the Day belongs to the biotechnology company Avidity Biosciences (RNA). I found the stock by using Barchart’s powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum, and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 5/6 the stock gained 56.92%. RNA Price vs Daily Moving AveragesAvidity Biosciences, Inc., a biopharmaceutical company, engages in the delivery of RNA therapeutics. It develops antibody oligonucleotide conjugates (AOC) that are designed to treat diseases previously untreatable with RNA therapeutics. The company’s lead product candidate AOC 1001 for the treatment of myotonic dystrophy type 1, a rare monogenic muscle disease that is in phase 1/2 clinical trial. Its other products in pipeline include AOC 1044 for the treatment of duchenne muscular dystrophy, which is under phase 1/2 clinical development trial; and AOC 1020 to treat facioscapulohumeral muscular dystrophy that is in phase 1/2 clinical trial. The company is developing products for rare skeletal muscle and rare cardiac diseases. Avidity Biosciences, Inc. was incorporated in 2012 and is headquartered in San Diego, California.Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:

100% technical buy signals

178.50+ Weighted Alpha

227.28% gain in the last year

Trend Seeker buy signal

Above its 20, 50 and 100 day moving averages

6 new highs and up 53.07% in the last month

Relative Strength Index 80.80%

Technical support level at $35.50

Recently traded at $39.80 with 50 day moving average of $26.67

Fundamental Factors:

Market Cap $3.67 billion

Revenue is expected to grow 35.30% this year but decrease by 17.00% next year

Earnings are estimated to decrease 10.00% this year and decrease an additional 6.60% next year

Analysts and Investor Sentiment — I don’t buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it’s hard to make money swimming against the tide:

In spite of those projections Wall Street analysts issued 8 strong buy, and 1 buy recommendations

Analysts have price targets between $45 and $96 with a consensus at $62.25 for a 56% increase

Value Line rates the stock its above average rating of 2

CFRAs MarketScope has a hold rating

MorningStar gives the stock an average 3 star rating with a Fair Value of $58.35 that’s an under valued by 34%

2,780 investors monitor the stock on Seeking Alpha

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