Shattuck Labs (NASDAQ:STTK) Shares Down 4.9% - Should You Sell?

Key Points

• Shattuck Labs shares fell 4.9% in midday trading, hitting an intraday low of $7.14 before last trading at $7.16, well below the previous close of $7.53.
• Analysts remain generally constructive on the stock: several firms recently raised ratings or price targets, and MarketBeat says STTK has a Moderate Buy consensus with a $13 average price target.
• The company beat quarterly EPS estimates by a penny, but it remains unprofitable; meanwhile, insider activity was mixed, with one director buying shares and an executive selling shares to cover tax obligations.

Shattuck Labs, Inc. (NASDAQ:STTK - Get Free Report)'s share price was down 4.9% during mid-day trading on Monday . The stock traded as low as $7.14 and last traded at $7.16. 152,778 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 884,001 shares. The stock had previously closed at $7.53.

Analysts Set New Price Targets

Several research firms recently commented on STTK. Cantor Fitzgerald initiated coverage on shares of Shattuck Labs in a research note on Monday, April 27th. They set an "overweight" rating for the company. Jefferies Financial Group upgraded shares of Shattuck Labs to an "outperform" rating and set a $7.00 price target on the stock in a research report on Friday, June 5th. Citigroup upgraded shares of Shattuck Labs from a "neutral" rating to a "buy" rating and set a $7.00 price objective on the stock in a report on Friday, June 5th. Leerink Partners started coverage on shares of Shattuck Labs in a research note on Monday. They issued an "outperform" rating and a $16.00 target price for the company. Finally, Wedbush increased their target price on shares of Shattuck Labs from $8.00 to $11.00 and gave the company an "outperform" rating in a research note on Friday, May 8th. Nine equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Shattuck Labs currently has a consensus rating of "Moderate Buy" and a consensus price target of $13.00.

Shattuck Labs Price Performance

The firm has a market capitalization of $517.21 million, a price-to-earnings ratio of -10.72 and a beta of 1.05. The business has a 50 day moving average of $5.92 and a 200 day moving average of $5.55.

Shattuck Labs (NASDAQ:STTK - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.13) earnings per share for the quarter, topping analysts' consensus estimates of ($0.14) by $0.01. During the same quarter last year, the company posted ($0.27) EPS. On average, sell-side analysts forecast that Shattuck Labs, Inc. will post -0.51 EPS for the current fiscal year.

Insider Activity

In related news, insider Abhinav A. Shukla sold 23,365 shares of the company's stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $7.08, for a total value of $165,424.20. Following the sale, the insider owned 86,380 shares of the company's stock, valued at $611,570.40. The trade was a 21.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Clay B. Siegall purchased 62,500 shares of the company's stock in a transaction that occurred on Tuesday, June 9th. The stock was acquired at an average cost of $4.00 per share, with a total value of $250,000.00. Following the transaction, the director directly owned 318,608 shares of the company's stock, valued at approximately $1,274,432. This represents a 24.40% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have sold 85,907 shares of company stock worth $591,850. Corporate insiders own 8.79% of the company's stock.

Hedge Funds Weigh In On Shattuck Labs

A number of hedge funds have recently modified their holdings of the stock. Orbimed Advisors LLC bought a new position in shares of Shattuck Labs during the 3rd quarter worth approximately $15,072,000. NEXTBio Capital Management LP acquired a new position in Shattuck Labs during the fourth quarter worth $11,497,000. Price T Rowe Associates Inc. MD acquired a new position in Shattuck Labs during the fourth quarter worth $7,031,000. T. Rowe Price Investment Management Inc. bought a new position in shares of Shattuck Labs during the fourth quarter valued at $4,945,000. Finally, Bank of America Corp DE lifted its holdings in shares of Shattuck Labs by 2,968.2% during the third quarter. Bank of America Corp DE now owns 1,131,888 shares of the company's stock valued at $2,705,000 after acquiring an additional 1,094,997 shares during the period. 58.74% of the stock is owned by institutional investors and hedge funds.

About Shattuck Labs

Shattuck Labs, Inc NASDAQ: STTK is a clinical‐stage biotechnology company headquartered in Cambridge, Massachusetts. The company is focused on developing immunotherapeutic vaccines to prevent and treat substance use disorders, with an initial emphasis on opioids. Shattuck Labs employs a proprietary hapten‐carrier conjugate technology designed to generate high‐affinity drug‐specific antibodies that sequester target molecules in the bloodstream and reduce their passage across the blood‐brain barrier.

The company's lead program targets fentanyl, a synthetic opioid responsible for a significant proportion of overdose fatalities.

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