Fathom Holdings director buys shares worth over $48k By Investing.com

Director Scott N. Flanders of Fathom Holdings Inc. (NASDAQ:FTHM), a real estate services company, has recently made significant purchases of the company's stock, according to a new SEC filing. On two separate occasions, Flanders acquired a total of 25,832 shares, with transactions valued at over $48,620. The first purchase took place on June 7, 2024, where Flanders bought 15,832 shares at prices ranging from $1.86 to $1.90 per share. A subsequent acquisition on June 10 saw an additional 10,000 shares added to his holdings, again with prices between $1.83 and $1.90 per share. These transactions have increased Flanders' direct ownership in Fathom Holdings to a total of 681,210 shares. Notably, the SEC filing indicated that 120,668 of these shares are held in the Scott N. Flanders SEP IRA Fathom, which includes 15,432 restricted stock units set to vest later in August 2024. The filing also referenced a vested stock option for 13,078 shares with an exercise price of $8.22, due to expire in August 2032. Investors often keep a close eye on insider transactions as they can provide insights into the executives' confidence in the company's future prospects. The recent purchases by Flanders could be interpreted as a positive signal regarding the value and potential of Fathom Holdings Inc. The company, which operates in the real estate sector providing services to agents and managers, is incorporated in North Carolina and has been expanding its market presence. As the real estate market continues to evolve, Fathom Holdings Inc. aims to leverage its position to capitalize on emerging opportunities. In other recent news, Fathom Holdings Inc. has seen several significant developments. The company has appointed Jon Gwin as its new Chief Operating Officer, bringing his extensive experience in the financial sector to oversee operations at Fathom Holdings. Gwin's appointment is part of a broader strategy to integrate Fathom's services, including residential brokerage, mortgage, and insurance, through its proprietary cloud-based software, intelliAgent. In addition, Fathom Holdings' first-quarter earnings did not meet revenue expectations, leading DA Davidson to lower its share price target for the company while maintaining its stock rating as a Buy. Despite the revenue miss, the sale of Fathom's insurance business has strengthened the company's financial position, adding $8 million in cash at closing with an additional $7 million expected over the next two years. Lastly, Fathom Holdings' Q1 2024 performance reflected strategic shifts within the company. The sale of Dagley Insurance Agency was announced with the aim of enhancing the company's balance sheet and financial stability. Despite a decline in total revenue and real estate transactions, Fathom reported a 160 basis point increase in gross profit margin, signaling progress towards profitability. These are the recent developments within Fathom Holdings Inc. Director Scott N. Flanders' recent stock purchases come at a time when Fathom Holdings Inc. (NASDAQ:FTHM) presents a mixed financial outlook according to InvestingPro data. With a market capitalization of $36.49 million, the company's recent financial performance shows a notable revenue decline of -15.54% in the last twelve months as of Q1 2024. Despite this, Fathom Holdings Inc. has a relatively low Price / Book ratio of 0.75, which could suggest that the stock is undervalued compared to the company's asset value. From a valuation standpoint, Fathom Holdings Inc. is trading at a low revenue valuation multiple, which aligns with the Director's actions, possibly indicating a perceived opportunity for growth or undervaluation. Additionally, the company's liquidity appears solid, with liquid assets exceeding short-term obligations. This could provide some reassurance to investors about the company's ability to meet its immediate financial commitments. InvestingPro Tips highlight that the company is quickly burning through cash and analysts have recently revised their earnings downwards for the upcoming period. Moreover, Fathom Holdings Inc. is not expected to be profitable this year, which aligns with the negative net income growth forecast. These factors, combined with the company's high price volatility, suggest a cautious approach for potential investors. For those looking to delve deeper into Fathom Holdings Inc.'s financial health, InvestingPro offers an array of additional tips. There are currently 18 more InvestingPro Tips available for Fathom Holdings Inc. at https://www.investing.com/pro/FTHM. Interested readers can take advantage of these insights and receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription by using the coupon code PRONEWS24.