Is Fathom Holdings Inc. (FTHM) One of the Cheapest Stocks Insiders are Buying This March?
In the ever-shifting landscape of the stock market, insider trading can offer valuable insights. Recently, we compiled a list of the 15 Cheapest Stocks Insiders Are Buying in March, and today, we’re putting the spotlight on Fathom Holdings Inc. (NASDAQ:FTHM) and its position among these intriguing investment opportunities.
Market Overview
After a strong performance at the beginning of the week, major market indices, including blue-chip stocks, saw minimal movement on Tuesday, while the NASDAQ Composite gained a modest 0.2%. This optimism was partially fueled by discussions surrounding eased U.S. tariffs, which created a ripple of enthusiasm among investors.
However, the rise was not without caution. The latest consumer confidence data revealed a concerning decline regarding American consumers’ expectations about income, business conditions, and job prospects. Bret Kenwell, a U.S. investment analyst at eToro, emphasized the current climate of uncertainty: “Sentiment continues to wane among investors, consumers, and businesses as economic concerns and economic policy uncertainty take their toll.” This murky backdrop promotes a cautious approach to investing.
The Appeal of Insider Trading
During times of volatility and uncertainty, executives buying shares in their own companies can be seen as a beacon of optimism. Insider trading reveals a lot—purchases may signal confidence in future growth, whereas sales might not necessarily indicate a lack of faith; oftentimes, they are driven by personal financial strategies. It’s crucial to consider such transactions within the broader context of a company’s financial health and prevailing industry trends.
To discover the stocks that insiders have recently been investing in, we employed Insider Monkey’s insider trading stock screener, focusing on stocks with at least two insiders purchasing shares in March. From this analysis, we ranked the 10 stocks with the lowest average price per share.
Spotlight on Fathom Holdings Inc.
With a market capitalization of $27.07 million, Fathom Holdings has made a name for itself in the real estate services sector. The Cary, North Carolina-based company offers a holistic platform that encompasses residential brokerage, mortgage, title, and insurance services. Their resources are accessible through the FathomRealty.com website and its technology platform, intelliAgent. Notable brands under Fathom include Fathom Realty, Dagley Insurance, Encompass Lending, and Verus Title.
Despite challenges, Fathom completed around 37,000 real estate transactions in 2024, reflecting a slight 2.2% decline from the previous year. Total revenue for the year was down by 3%, totaling $335 million, suggesting the company is under pressure but attempting to adapt through cost-saving initiatives. Their net loss for the year was $21.6 million, though this was an improvement compared to $24.0 million the year before.
Interestingly, in March, two insiders made a significant investment, purchasing nearly $600,000 worth of Fathom shares at an average price of $0.72 per share. With the stock currently trading at $1.00, FTHM has seen a 34.64% drop year-to-date and a staggering 50% decline over the past year. However, analysts remain optimistic, as four have given a "Buy" rating, projecting a price target of $4.25, which suggests a potential upside of 325%.
Final Thoughts
Fathom Holdings Inc. ranks 9th on our list of the cheapest stocks insiders are buying in March. While the insiders’ purchases are certainly positive signals, we believe there are even more promising opportunities in the market, particularly within the AI sector. For those seeking alternative investment routes, we highly encourage keeping an eye on our report covering the cheapest AI stocks, which present a brighter outlook for growth and perhaps quicker returns.
In the meantime, don’t miss our recommendations on the 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy According to Billionaires—these could be your ticket to navigating the current market dynamics efficiently.
Stay informed, assess carefully, and happy investing!