Have Insiders Sold Fathom Holdings Inc. (NASDAQ:FTHM) Shares Recently?

By
Simply Wall St
Published
November 24, 2021
NasdaqCM:FTHM
Source: Shutterstock

Some Fathom Holdings Inc. (NASDAQ:FTHM) shareholders may be a little concerned to see that the Founder, Joshua Harley, recently sold a substantial US$4.8m worth of stock at a price of US$24.13 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.8%.

View our latest analysis for Fathom Holdings

Fathom Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Joshua Harley is the biggest insider sale of Fathom Holdings shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$24.25, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 3.8% of Joshua Harley's stake.

Insiders in Fathom Holdings didn't buy any shares in the last year. 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!

insider-trading-volume
NasdaqCM:FTHM Insider Trading Volume November 24th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Fathom Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Fathom Holdings insiders own 56% of the company, currently worth about US$220m 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.

What Might The Insider Transactions At Fathom Holdings Tell Us?

Insiders sold Fathom Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Fathom Holdings (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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, but not derivative transactions.

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.

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