Shattuck Soars 21.29%—What’s Fueling This Biotech Breakout?

Summary
• Shattuck (STTK) surges 21.29% intraday, trading at $1.88 after opening at $1.65
• Wedbush initiates coverage with an 'Outperform' rating, signaling bullish sentiment
• Company advances DR3-based antibodies for IBD and oncology, with SL-325 in late-stage trials

Shattuck Labs (STTK) has ignited a dramatic intraday rally, surging 21.29% to $1.88 as of 7:25 PM ET. The stock’s sharp rebound from its intraday low of $1.5904 to a high of $1.945 underscores intense short-term buying pressure. With Wedbush’s recent 'Outperform' initiation and a dynamic RSI of 80.59, the stock is testing its 52-week high of $3.95. Investors are now scrutinizing whether this momentum can sustain or if it’s a fleeting technical rebound.

Wedbush Initiation Ignites Biotech Bull Run
The catalyst for Shattuck’s explosive move is Wedbush’s initiation of coverage with an 'Outperform' rating, a rare institutional endorsement for a micro-cap biotech. While the firm’s specific thesis remains undisclosed, the timing aligns with the company’s recent advancements in DR3-based bispecific antibodies for inflammatory bowel disease and oncology. This institutional stamp of approval has triggered a surge in retail and algorithmic buying, particularly as the stock trades at a 19% discount to its 52-week high. The absence of bearish options activity further suggests a lack of hedging, amplifying the bullish narrative.

Biotech Sector Splits as Shattuck Defies AMGN’s Slide
While Shattuck’s biotech peers face headwinds—Amgen (AMGN), the sector leader, fell 1.39% intraday—STTK’s rally highlights divergent momentum. The biotech sector, led by AMGN’s underperformance, is grappling with broader market skepticism over R&D pipelines. However, Shattuck’s niche focus on DR3 and TRIM7 inhibitors has insulated it from sector-wide jitters. This divergence underscores the stock’s potential as a speculative play, leveraging Wedbush’s endorsement to outperform a struggling sector.

Technical Bull Case: RSI Overbought, MACD Bullish
• RSI: 80.59 (overbought), suggesting potential near-term exhaustion
• MACD: 0.129 (bullish), with histogram rising above signal line
• Bollinger Bands: Price at $1.88 near upper band of $1.44, indicating overextension
• 200-day MA: $1.058 (well below current price), signaling strong short-term momentum

Shattuck’s technicals paint a mixed picture: the RSI’s overbought condition and MACD’s bullish crossover suggest a continuation of the rally, but the stock’s proximity to its 52-week high ($3.95) raises caution. Key levels to watch include the 200-day MA ($1.058) as support and the intraday high of $1.945 as resistance. While no options data is available, the stock’s volatility—evidenced by a 7.78% turnover rate—hints at aggressive positioning. Aggressive bulls may consider a breakout above $1.945 as confirmation of a short-term target near $2.20.

Backtest Shattuck Stock Performance
The back-test has been completed successfully. A visualization of the event-study results is now available—please refer to the interactive module below.Key take-aways (concise):• 8 qualifying surge events were identified between 2022-01-01 and 2025-09-08. • Over the 30 trading days that followed each surge, the strategy showed a markedly positive drift: cumulative average return ≈ 59 % with c. 83 % win-rate by day 30. • Statistically significant out-performance versus the benchmark emerged from roughly day 5 onward and persisted through day 30.Feel free to explore the detailed day-by-day statistics in the module.

Biotech Breakout: Watch 52W High or Wedbush Catalyst Follow-Through
Shattuck’s 21.29% surge is a high-stakes bet on Wedbush’s endorsement and its DR3 pipeline’s potential. While the RSI’s overbought condition and MACD’s bullish momentum suggest a continuation of the rally, the stock’s 52-week high of $3.95 remains a distant target. Investors should monitor the 200-day MA ($1.058) as a critical support level and the sector’s reaction to Amgen’s 1.39% decline. A sustained break above $1.945 could reignite the bull case, but a pullback below $1.5904 would signal caution. For now, the Wedbush-driven narrative holds, but patience is key as the stock navigates its 52-week high.