Fathom Holdings Inc. (NASDAQ:FTHM), a company specializing in real estate services, has seen a recent purchase of stock by director Scott N. Flanders. The transactions, which occurred on two separate dates, represent a vote of confidence in the company's future prospects.
On May 24, 2024, Flanders acquired 3,066 shares of Fathom Holdings' common stock at prices ranging from $1.69 to $1.70. Following this transaction, he made an additional purchase on May 29, 2024, buying 700 shares at a price of $1.75 per share. In total, these transactions amounted to over $6,428 invested in the company's stock.
The recent purchases have increased Flanders' holding in the company significantly, bringing his total ownership to 602,215 shares of common stock. Notably, 120,668 of these shares are held in the Scott N. Flanders SEP IRA Fathom, and 15,432 of those are restricted stock units set to vest on August 27, 2024.
Investors and market watchers often look to insider buying as a signal of a company's internal strength. Insider transactions, such as those performed by Flanders, can indicate the leadership's belief in the business's growth and financial health.
Fathom Holdings has not commented on these transactions, but the filings provide transparency and detail on the director's increased stake in the company. The purchases were made in accordance with SEC regulations, and further details regarding the exact number of shares bought at each price point are available upon request to the issuer, any security holder of the issuer, or the SEC staff.
The stock options held by Flanders vested in full on August 12, 2023, and are exercisable at a price of $8.22 per share until their expiration on August 11, 2032. These options cover 13,078 shares of common stock, which are also included in his total reported holdings.
As Fathom Holdings continues to navigate the real estate market, these insider transactions serve as a notable point of interest for current and potential investors.
InvestingPro Insights
In light of the recent insider transactions at Fathom Holdings Inc. (NASDAQ:FTHM), it's crucial for investors to consider the company's financial health and market performance. According to the latest data from InvestingPro, Fathom Holdings has a market capitalization of 37.32 million USD, reflecting its size in the industry. Despite the confidence shown by director Scott N. Flanders through his stock purchases, the company's revenue has seen a decline of 15.54% over the last twelve months as of Q1 2024, which could raise concerns about its growth trajectory.
InvestingPro Tips reveal that Fathom Holdings is expected to have net income growth this year, which might align with the optimistic outlook suggested by the insider buying activity. However, the company is also quickly burning through cash and has been trading at a low revenue valuation multiple. These factors, combined with the high price volatility that the stock generally experiences, create a complex picture for investors to navigate.
For those interested in a deeper analysis, InvestingPro offers additional insights, with a total of 17 InvestingPro Tips available for Fathom Holdings. These tips provide a comprehensive view of the company's financial position, stock performance, and market expectations. To access the full suite of tips and make more informed investment decisions, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Finally, it's worth noting that the company's stock has seen a 1-week price total return of 7.28% and a 1-month price total return of 8.65%, as of the 150th day of 2024. This could indicate a short-term positive momentum, which might be partially attributed to the recent insider buying. However, with a significant year-to-date price total return of -52.79%, the long-term view remains challenging.
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