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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Shattuck Labs, Inc. (NASDAQ:STTK), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Shattuck Labs
The Last 12 Months Of Insider Transactions At Shattuck Labs
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Taylor Schreiber bought US$50k worth of shares at a price of US$3.47 per share. That means that even when the share price was higher than US$1.23 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Shattuck Labs insiders may have bought shares in the last year, but they didn't sell any. They paid about US$2.14 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Shattuck Labs insiders own 13% of the company, worth about US$7.8m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Shattuck Labs Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Shattuck Labs insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shattuck Labs. Be aware that Shattuck Labs is showing 4 warning signs in our investment analysis, and 2 of those can't be ignored...