In a recent series of transactions, Scott N. Flanders, a director at Fathom Holdings Inc. (NASDAQ:FTHM), a real estate services company, has increased his stake in the company by purchasing shares valued at a total of $112,215.
Over the course of three days, Flanders made a series of purchases, acquiring 25,000 shares each day. These transactions occurred on May 13, May 14, and May 15, with prices per share ranging from $1.4911 to $1.5027. The purchases were made in multiple transactions at varying prices within this range, demonstrating a strong commitment to the company by one of its directors.
Following these purchases, Flanders now owns a total of 521,100 shares in Fathom Holdings. It is noteworthy that a portion of these shares, specifically 120,668, are held in a SEP IRA under Flanders' name. Of these, 15,432 shares are restricted stock units that are set to vest later in the year, on August 27, 2024.
These recent acquisitions by a key insider are often viewed by investors as a positive signal, suggesting confidence in the company's future prospects. Fathom Holdings Inc., with its focus on real estate agents and managers, operates in an industry that often reflects broader economic trends, and insider transactions can provide insights into the company's internal expectations.
Investors and shareholders of Fathom Holdings Inc. can find further details about these transactions upon request, as Flanders has committed to providing full information regarding the number of shares purchased at each separate price within the reported ranges.
InvestingPro Insights
Following the recent share purchases by director Scott N. Flanders, investors may be curious about the financial health and market sentiment surrounding Fathom Holdings Inc. (NASDAQ:FTHM). The company's market capitalization currently stands at a modest $30.75 million, indicating a smaller player within the sector.
According to InvestingPro Tips, Fathom Holdings is expected to see net income growth this year, which may have influenced Flanders' decision to increase his stake. However, the company is also flagged for quickly burning through cash and has been suffering from weak gross profit margins, with a reported margin of just 8.9% over the last twelve months as of Q1 2024. This could be a point of concern for investors looking at the company's ability to sustain operations and fund growth initiatives.
InvestingPro Data further reveals a Price/Book ratio of 0.59, suggesting the stock may be undervalued relative to the company's assets, which might have been a factor in the timing of Flanders' share purchases. Yet, the company's stock has experienced significant price volatility, a trend that is reflected in the -74.26% one-year price total return as of the 136th day of 2024.
For investors seeking more detailed analysis, there are additional InvestingPro Tips available on Fathom Holdings Inc., which can be accessed at https://www.investing.com/pro/FTHM. These tips may provide further insights into the company's financials and market performance. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of information that could guide investment decisions. There are 16 more InvestingPro Tips listed for Fathom Holdings Inc., which could provide a comprehensive view of the company's outlook and potential investment risks or opportunities.
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