Even if it's not a huge purchase, we think it was good to see that Marco Fregenal, the CEO, President & Director of Fathom Holdings Inc. (NASDAQ:FTHM) recently shelled out US$57k to buy stock, at US$1.94 per share. Although the purchase is not a big one, increasing their shareholding by only 1.8%, it can be interpreted as a good sign.
Fathom Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Founder & Chief Evangelist, Joshua Harley, for US$2.0m worth of shares, at about US$2.00 per share. That means that an insider was selling shares at around the current price of US$1.84. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last twelve months insiders purchased 761.58k shares for US$1.5m. On the other hand they divested 1.10m shares, for US$2.3m. All up, insiders sold more shares in Fathom Holdings than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership Of Fathom Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Fathom Holdings insiders own 41% of the company, currently worth about US$16m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Fathom Holdings Insiders?
It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Fathom Holdings insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fathom Holdings. In terms of investment risks, we've identified 4 warning signs with Fathom Holdings and understanding these should be part of your investment process.
Of course Fathom Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
