In a recent move that has caught the attention of market watchers, Scott N. Flanders, a director at Fathom Holdings Inc. (NASDAQ:FTHM), a company known for its real estate services, has invested $285,000 in the company's common stock. The purchase, which took place on September 12, 2024, involved 100,000 shares at a price of $2.85 per share.
This transaction was part of a private purchase between Flanders and the company's founder, Joshua Harley. Following this acquisition, Flanders now owns a total of 824,688 shares in Fathom Holdings Inc. It's also noted that a portion of these shares, specifically 120,668, are held by the Scott N. Flanders SEP IRA Fathom, with 43,478 of these being restricted stock units that are set to vest in August 2025.
In addition to his purchase of common stock, it has been disclosed that Flanders has vested stock options for 13,078 shares of common stock, which vested in full on August 12, 2023. These options have a conversion or exercise price of $8.22 and are set to expire on August 11, 2032.
The details of these transactions were made public in a recent filing with the Securities and Exchange Commission. Fathom Holdings Inc., headquartered in Cary, North Carolina, operates within the real estate sector, providing a range of services through its agents and managers. The filing was signed on behalf of Scott N. Flanders by Donald R. Reynolds, by Power of Attorney, on September 16, 2024.
In other recent news, Fathom Holdings Inc. has reported noteworthy developments. The company has expanded its 2019 Omnibus Stock Incentive Plan, adding 1.6 million shares to the reserve, bringing the total to 7,360,778 shares. This move was ratified by shareholders at the company's Annual Meeting, where six directors were also elected to serve on the board. In addition to this, shareholders approved the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
Fathom Holdings has also reported a dip in total revenue for the second quarter of 2024. Despite this, the company saw a 12% increase in its real estate agent network and substantial growth in its mortgage business. The sale of its insurance business added a significant $15 million to its cash reserves. The company's Q2 2024 revenue decreased by 10.9% to $89.2 million, while the mortgage business revenue saw an impressive increase of 85% to $3.7 million.
To address these changes, Fathom Holdings has introduced two new commission plans, Fathom Max and Fathom Share, aimed at improving agent recruitment and retention. The company also plans to reassess financial guidance in Q4 2024 due to the new revenue share models. Fathom Holdings is aiming for sustainable growth and increased profitability through these new commission plans and ancillary businesses. The company is striving for positive free cash flow and a 30% or higher agent growth rate.
InvestingPro Insights
In light of the recent insider buying activity at Fathom Holdings Inc. (NASDAQ:FTHM), investors may be curious about the company's financial health and market performance. According to InvestingPro, the company has a market capitalization of $62.18 million, reflecting its size in the industry. Despite some challenges, there are positive signs in the company's stock performance. Over the last three months, Fathom Holdings Inc. has seen a strong return of 77.02%, suggesting a growing investor confidence in the short term.
InvestingPro Tips indicate that analysts are not expecting Fathom Holdings Inc. to be profitable this year, which aligns with the negative P/E ratio of -2.5. This could be a contributing factor to the high price volatility that the stock generally trades with. However, it's worth noting that the company's liquid assets exceed its short-term obligations, which may provide some financial stability.
For investors considering Fathom Holdings Inc. as a potential addition to their portfolio, it is important to weigh these factors. With a total of 18 additional InvestingPro Tips available, more comprehensive insights can be found to guide investment decisions. For a deeper analysis of Fathom Holdings Inc., including the full list of available tips, visit https://www.investing.com/pro/FTHM.
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