Fathom Holdings Inc. (NASDAQ:FTHM) director David C. Hood has increased his stake in the company, purchasing 15,000 shares of common stock for a total transaction value of approximately $22,645. The shares were bought at prices ranging from $1.487 to $1.55 on May 13, 2024.
This latest acquisition brings Hood's total direct ownership in Fathom Holdings to 34,875 shares. Notably, of these shares, 15,432 are restricted stock units set to vest later in the year, on August 27, 2024. The purchase represents a vote of confidence from Hood in the real estate services company's future prospects.
The transactions were disclosed in a filing with the Securities and Exchange Commission, which also included details on derivative securities. Hood holds stock options for additional shares of Fathom Holdings, with varying exercise prices and expiration dates. Among these, options for 13,078 shares have a conversion price of $8.22 and expire in 2032, options for 2,273 shares have a conversion price of $44 and expire in 2031, and options for 2,986 shares have a conversion price of $20.1, expiring in 2030.
These derivative holdings indicate potential for future increases in Hood's stake in Fathom Holdings, depending on the company's stock performance and his exercise of the options. The reported transactions underscore ongoing activity among the company's insiders and may be of interest to investors watching for signs of executive confidence in the company's trajectory.
Investors and analysts often look to insider buying and selling patterns as indicators of a company's internal perspective on its performance and outlook. In the case of Fathom Holdings, Hood's recent purchase could be interpreted as a positive signal for the company's stock, which is publicly traded under the symbol FTHM.
InvestingPro Insights
Amidst the recent insider transactions at Fathom Holdings Inc. (NASDAQ:FTHM), the company's financial health and stock performance metrics provide critical context for investors. According to InvestingPro data, Fathom Holdings has a market capitalization of approximately $29.71 million, reflecting its size and market value as of Q1 2024. The company has been experiencing negative revenue growth, with a -15.54% change over the last twelve months as of Q1 2024, which may raise concerns about its ability to expand its top-line figures. Additionally, Fathom Holdings has reported a gross profit margin of 8.9% during the same period, which indicates the percentage of revenue that exceeds the cost of goods sold, a key indicator of financial efficiency and potential profitability.
InvestingPro Tips highlight several strategic points for investors considering Fathom Holdings' stock. The company is expected to face challenges in generating net income growth this year, and it's also been noted for quickly burning through cash. These factors contribute to the stock's high price volatility and underscore the importance of closely monitoring the company's financial stability. On a more positive note, Fathom Holdings' liquid assets currently exceed its short-term obligations, suggesting some degree of financial flexibility. For those interested in a deeper dive into the company's financials and future prospects, InvestingPro offers additional insights. Currently, there are 17 more InvestingPro Tips available for Fathom Holdings, which can be accessed through the InvestingPro platform.
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