Scott N. Flanders, a director at Fathom Holdings Inc. (NASDAQ:FTHM), recently increased his stake in the company with a series of stock purchases totaling $75,794. These transactions took place over several days, with Flanders acquiring a total of 39,955 shares.
On November 22, Flanders purchased 18,914 shares at a price of approximately $1.84 per share. This was followed by an additional purchase of 1,041 shares on November 25 at $1.85 per share. The most significant acquisition occurred on November 26, when Flanders bought 20,000 shares at a price ranging from $1.89 to $1.95 per share.
These transactions have increased Flanders' total holdings to 864,643 shares, indicating a strengthened position in the company.
In other recent news, Fathom Holdings Inc. reported a decrease in Q3 2024 revenue by 10% year-over-year, amounting to $83.7 million, alongside an adjusted EBITDA loss of $1.4 million. The company also announced significant changes to its leadership team, with Jon Gwin appointed as Chief Revenue Officer and Samantha Giuggio promoted to President of Fathom Realty and Chief Operations Officer of Fathom Holdings. Despite a challenging financial quarter, Fathom Holdings has been proactive in implementing growth strategies, such as the acquisition of My Home Group, which is anticipated to substantially boost future revenue.
The company completed 9,331 transactions, a 9.5% decrease from the previous year, but saw its agent network grow by 9.3%, now boasting over 14,500 licensed agents. Fathom's mortgage division and Verus Title experienced significant revenue growth, with increases of 52% and 71% respectively. These recent developments indicate Fathom Holdings' commitment to expansion, with plans to operate in all 50 states by the end of 2025. The acquisition of My Home Group is expected to contribute approximately $100 million in annual revenue from 2025 onwards. Despite the current market uncertainties, Fathom Holdings maintains a strong focus on long-term growth.
InvestingPro Insights
Scott N. Flanders' recent stock purchases in Fathom Holdings Inc. (NASDAQ:FTHM) come at a time when the company faces several challenges, as highlighted by InvestingPro data and tips. The real estate technology company's market cap stands at $44.11 million, reflecting its current valuation in the market.
InvestingPro Tips reveal that FTHM is "quickly burning through cash" and "suffers from weak gross profit margins." These factors may explain why the director chose to increase his stake, possibly seeing an opportunity in the company's depressed stock price. The stock's price-to-book ratio of 0.92, as reported by InvestingPro, suggests that the market values the company below its book value, which could be seen as an attractive entry point for insiders.
Another relevant InvestingPro Tip indicates that the "stock price movements are quite volatile," which is consistent with the recent insider buying activity and the reported 33.56% price decline over the past three months. This volatility could present opportunities for informed investors like Flanders to accumulate shares at what they perceive to be favorable prices.
It's worth noting that InvestingPro offers 13 additional tips for FTHM, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects and challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.