Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Shattuck Labs, Inc. (NASDAQ:STTK), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

The Last 12 Months Of Insider Transactions At Shattuck Labs

In the last twelve months, the biggest single purchase by an insider was when Independent Director Clay Siegall bought US$250k worth of shares at a price of US$4.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$7.18. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Shattuck Labs insiders bought shares during the last year, they didn't sell. They paid about US$1.52 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Shattuck Labs is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Shattuck Labs Have Bought Stock Recently

Over the last quarter, Shattuck Labs insiders have spent a meaningful amount on shares. We can see that Independent Director Clay Siegall paid US$250k for shares in the company. No-one sold. This makes one think the business has some good points.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Shattuck Labs insiders own 9.1% of the company, worth about US$50m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Shattuck Labs Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Shattuck Labs insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shattuck Labs.

But note: Shattuck Labs may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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.