Murray Stephen H., a director at Fathom Holdings Inc. (NASDAQ:FTHM), recently acquired 20,000 shares of the company's common stock. The shares were purchased on November 14, 2024, at an average price of $1.9521 per share, amounting to a total investment of $39,042. Following this transaction, Murray's direct ownership in Fathom Holdings stands at 127,727 shares, which includes 43,478 restricted stock units scheduled to vest on August 18, 2025.
In other recent news, Fathom Holdings Inc. reported a 10% decrease in Q3 2024 revenue, which amounted to $83.7 million, along with an adjusted EBITDA loss of $1.4 million. Despite these financial setbacks, the company has been actively implementing growth strategies. Fathom's recent acquisition of My Home Group is expected to significantly increase future revenue.
The company also reported completing 9,331 transactions, a 9.5% decrease from the previous year, while its agent network expanded by 9.3%, now hosting over 14,500 licensed agents. Notably, Fathom's mortgage division and Verus Title saw substantial revenue growth, with increases of 52% and 71% respectively.
In leadership changes, Jon Gwin was appointed as the new Chief Revenue Officer, while Samantha Giuggio was promoted to President of Fathom Realty and Chief Operations Officer of Fathom Holdings. These changes are part of Fathom's efforts to enhance growth and operational management.
The company plans to operate in all 50 states by the end of 2025, indicating its commitment to expansion. The acquisition of My Home Group is expected to contribute approximately $100 million in annual revenue from 2025 onwards. Despite market uncertainties, Fathom Holdings remains focused on long-term growth.
InvestingPro Insights
The recent insider purchase by director Murray Stephen H. comes at a time when Fathom Holdings Inc. (NASDAQ:FTHM) is facing several challenges, as revealed by InvestingPro data and tips. The company's stock price has taken a significant hit, with a 38.66% decline over the past month and a 50.08% drop over the last year. This context makes the director's investment particularly noteworthy, as it may signal confidence in the company's long-term prospects despite current headwinds.
An InvestingPro Tip indicates that FTHM is "quickly burning through cash," which aligns with the company's reported operating income of -$22.04 million for the last twelve months. This cash burn rate is a critical factor for investors to consider, especially given that analysts do not anticipate the company to be profitable this year.
On a more positive note, another InvestingPro Tip suggests that FTHM's "liquid assets exceed short term obligations," which could provide some financial flexibility as the company navigates its current challenges. Additionally, the stock is trading at a low revenue valuation multiple, potentially indicating an undervalued position relative to its sales.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for FTHM, providing a deeper understanding of the company's financial health and market position.
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