Shattuck Labs Falls To US$1.01, But Insiders Sold At Lower Price

Despite the fact that Shattuck Labs, Inc.'s (NASDAQ:STTK) value has dropped 19% in the last week insiders who sold US$250k worth of stock in the past 12 months have had less success. The average selling price of US$10.00 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Shattuck Labs

The Last 12 Months Of Insider Transactions At Shattuck Labs

In the last twelve months, the biggest single sale by an insider was when the Chief Financial Officer, Andrew Neill, sold US$250k worth of shares at a price of US$10.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$1.01. So it may not tell us anything about how insiders feel about the current share price. Andrew Neill was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 59.32k shares for US$127k. On the other hand they divested 25.00k shares, for US$250k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Shattuck Labs Insiders Bought Stock Recently

We saw some Shattuck Labs insider buying shares in the last three months. Co-Founder Taylor Schreiber bought US$44k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Shattuck Labs Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Shattuck Labs insiders own 13% of the company, worth about US$6.3m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Shattuck Labs Insiders?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. The insider transactions at Shattuck Labs are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Shattuck Labs is showing 6 warning signs in our investment analysis, and 3 of those shouldn't be ignored...

Of course Shattuck Labs may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.