Shares of Shattuck Labs, Inc. (STTK) have declined sharply so far this year, with losses hovering around 43%. However, STTK might present an unmissable opportunity, as some factors indicate it could climb again.
Headquartered in Austin, Texas, Shattuck is a clinical-stage biotech that develops therapeutics for the treatment of patients suffering from cancer and autoimmune diseases. In 2020, Shattuck performed several strategic corporate transactions of debt and equity financing. Those activities demonstrated the company’s commitment to reaching corporate growth.
Available Funding
According to Shattuck’s balance sheet, the company had $335.4 million available in total cash and equivalents as of December 30, 2020. That sum should be adequate to sustain operating activities until 2024, based on the company’s estimates, which were derived from a comparison of fund availability against necessary yearly expenses for Research and Development, as well as General and Administrative costs.
Valuation
The stock appears to be somewhat fairly priced. Shares are currently changing hands for about $30.00 apiece, with it trading below the 50-Day moving average value of $32.18 and the 200-Day moving average value of $36.33.
Catalysts
For the period from July 1, 2021 onwards, Shattuck Labs is expecting to announce relevant outcomes from certain clinical trials. The trials’ researchers are assessing three products it has developed: a treatment for women suffering from ovarian cancer, a treatment for patients with advanced solid tumors and lymphomas, and a treatment for patients who are suffering from common skin cancers affecting areas on the head and neck.
These therapies are being evaluated in terms of safety, drug tolerability and anti-tumor activity.
Wall Street’s Take
In the last three months, Wall Street analysts have assigned two Buy ratings. Therefore, the consensus rating for Shattuck Labs is a Moderate Buy. At $48, the average analyst price target indicates 60% upside potential. (See Shattuck Labs stock analysis on TipRanks)
Summary
Shareholders of Shattuck Labs should not be worried about the sharp depreciation of the share price year-to-date, as their investment will likely start to appreciate. Eventually, it should rebound strongly as important clinical trial results are disclosed, with data expected to be released during the second half of 2022.
The company raised funds through debt and equity financing transactions last year. That action speaks to the biotech’s level of commitment to developing its products and bringing them to market.
Disclosure: On the date of publication, the author did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.
