On September 6, 2023, Joshua Harley, CEO and 10% Owner of Fathom Holdings Inc (FTHM, Financial), sold 5,000 shares of the company. This move comes amidst a year where the insider has sold a total of 5,804 shares and purchased 18,000 shares.
Joshua Harley is a key figure at Fathom Holdings Inc, a company that operates as a cloud-based, technology-driven, full-service real estate brokerage firm in the United States. The company primarily operates through its wholly-owned subsidiary, Fathom Realty, LLC. It provides residential real estate brokerage services to real estate agents including training, marketing, and support services for its agents.
The insider's recent sell has raised eyebrows in the investment community, prompting a closer look at the company's stock performance and insider trading trends.
The insider transaction history for Fathom Holdings Inc shows a total of 8 insider buys and 3 insider sells over the past year. The insider's recent sell is a deviation from the trend, which has been predominantly towards buying.
On the day of the insider's recent sell, shares of Fathom Holdings Inc were trading for $6.09 apiece, giving the stock a market cap of $98.401 million. This is a significant decrease from the company's GuruFocus Value of $13.95.
With a price-to-GF-Value ratio of 0.44, Fathom Holdings Inc is currently considered a Possible Value Trap, indicating that investors should think twice before investing. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
The insider's recent sell, coupled with the company's current valuation, suggests a cautious approach for potential investors. While the company's business model and services remain robust, the insider's sell and the stock's current valuation indicate potential challenges ahead. As always, investors are advised to conduct their own thorough research before making any investment decisions.
