Insiders At Fathom Holdings See Good Returns After Buying Stock Worth US$600.0k

Fathom Holdings Inc. (NASDAQ:FTHM) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 10.0% decline in the stock price. Even after accounting for the recent loss, the US$600.0k worth of stock purchased by them is now worth US$899.3k or in other words, their investment continues to give good returns.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Fathom Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Chair of the Board Scott Flanders bought US$500k worth of shares at a price of US$0.72 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.08. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$600k for 832.64k shares. On the other hand they divested 310.19k shares, for US$529k. In the last twelve months there was more buying than selling by Fathom Holdings insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Fathom Holdings

Fathom Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Fathom Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 30% of Fathom Holdings shares, worth about US$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Fathom Holdings Tell Us?

It doesn't really mean much that no insider has traded Fathom Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Fathom Holdings and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 5 warning signs for Fathom Holdings (2 are potentially serious) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.