In a recent series of transactions, Scott N. Flanders, a director of Fathom Holdings Inc. (NASDAQ:FTHM), has increased his stake in the company by purchasing shares worth approximately $79,562. The purchases, which took place over three separate days, demonstrate a significant investment by Flanders in the real estate service provider.
The transactions began on May 16, 2024, when Flanders acquired 23,000 shares at a price of $1.556 each. Following this initial purchase, he continued to buy more shares over the next few days. On May 17, he added another 19,999 shares to his holdings, this time at a higher price of $1.698 per share. The buying spree concluded on May 20, with the acquisition of 5,985 shares priced at $1.6402 each.
According to the footnotes provided in the SEC filing, the shares were bought in multiple transactions at varying prices. For the May 16 purchase, the price per share ranged from $1.53 to $1.60. The May 17 transactions were executed at prices between $1.61 and $1.75, and the final day's purchases varied from $1.63 to $1.65.
These purchases have brought Flanders' total ownership in Fathom Holdings Inc. to 570,084 shares. It is also noted in the filing that a portion of these shares, specifically 120,668, are held by the Scott N. Flanders SEP IRA Fathom, which includes 15,432 shares that are restricted stock units vesting in August 2024.
Investors and market watchers often look at insider buying as a sign of confidence in the company's future prospects. Flanders' decision to increase his investment in Fathom Holdings Inc. could be interpreted as a strong belief in the company's value and growth potential.
InvestingPro Insights
In light of the recent insider buying by Scott N. Flanders, a closer look at Fathom Holdings Inc. (NASDAQ:FTHM) through InvestingPro data and tips provides a nuanced picture of the company's financial health and market performance.
InvestingPro Data indicates a challenging financial landscape for Fathom Holdings Inc., with a negative Price-to-Earnings (P/E) ratio of -1.18, reflecting the company's current lack of profitability. Additionally, the company has a low Price/Book ratio of 0.7 as of the last twelve months leading up to Q1 2024, which could signal that the stock is potentially undervalued relative to its assets. This is coupled with a substantial decline in revenue growth of -15.54% over the same period, suggesting a contraction in the company's business operations.
From the perspective of market performance, Fathom Holdings Inc. has experienced significant price volatility. According to InvestingPro Tips, the stock has seen a notable return over the last week with a 26.24% increase, yet it has faced a steep Year-To-Date price total return of -50.42% as of the latest available data. This aligns with the tip that the stock generally trades with high price volatility, which could be a factor for investors to consider when evaluating the risk associated with the stock.
Moreover, two InvestingPro Tips that stand out in the context of the insider buying activity are the expectations of net income growth this year, despite the company not being profitable in the last twelve months. This could suggest that insiders like Flanders see potential for a turnaround in the near future. However, it's also noted that analysts have revised their earnings expectations downwards for the upcoming period, which may temper some optimism.
For those interested in a deeper dive into Fathom Holdings Inc., there are additional InvestingPro Tips available at https://www.investing.com/pro/FTHM. Subscribers can access an array of insights, including 18 more tips to help inform their investment decisions. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, be sure to use the coupon code PRONEWS24.
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