RNA Overview

Avidity Biosciences Overview: Avidity Biosciences reported a quarterly loss of $1.27 per share, missing estimates, but its sales of $12.475 million exceeded expectations. The stock has surged 141% over six months, with an RSI of 76, indicating it may be overbought.

Henry Schein Overview: Henry Schein received an Overweight rating from Barclays with a price target of $86. The stock has increased by 6% recently and has a 52-week high of $82.49, with an RSI of 71.1, suggesting it is also nearing overbought territory.

Momentum Indicator Explanation: The Relative Strength Index (RSI) is a momentum indicator that helps traders assess stock performance by comparing price strength on up days versus down days, with values above 70 indicating overbought conditions.

Market Context: The article highlights the potential risks for investors in the health care sector, particularly focusing on stocks that may be overvalued based on their momentum indicators.

52-Week Range of XBI: XBI's share price has a 52-week low of $66.66 and a high of $125.87, with the last trade recorded at $123.35.

Understanding ETFs: Exchange-traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand.

Monitoring ETF Flows: Weekly monitoring of shares outstanding helps identify ETFs with significant inflows (new units created) or outflows (old units destroyed), impacting their underlying holdings.

Disclaimer: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.

Analyst Upgrade: Oppenheimer upgraded Dyne Therapeutics (DYN) to Outperform from Perform, raising the price target from $11 to $40 per share, citing positive data expectations from Avidity Biosciences' late-stage trial.

Market Reaction: Following Novartis' $12 billion acquisition of Avidity, Dyne's shares surged over 40%, indicating strong market confidence in Dyne's potential upside.

Future Expectations: Analyst Kostas Biliouris anticipates nearly 50% upside for DYN, driven by the expected Phase 3 readout in H2 2026 for Avidity's RNA therapy targeting myotonic dystrophy type 1.

Upcoming Catalysts: Biliouris expects Dyne's DM1 program for z-basivarsen to succeed, with potential catalysts including an FDA review of the company's Duchenne muscular dystrophy candidate.

52-Week Range of XBI: XBI's share price has a 52-week low of $66.66 and a high of $123.47, with the last trade recorded at $120.40.

200-Day Moving Average: The article suggests that comparing the current share price to the 200-day moving average can be a useful technical analysis tool.

ETFs Trading Mechanism: Exchange-traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand.

Impact of Inflows and Outflows: Monitoring week-over-week changes in shares outstanding helps identify ETFs with significant inflows or outflows, which can affect the underlying holdings.