Fathom (NASDAQ:FTHM) Trading Up 75.4% – Should You Buy?

Shares of Fathom Holdings Inc. (NASDAQ:FTHM) were up 75.4% during trading on Wednesday . The company traded as high as $1.43 and last traded at $1.11. Approximately 74,056,887 shares were traded during mid-day trading, an increase of 8,300% from the average daily volume of 881,676 shares. The stock had previously closed at $0.6330.

Fathom News Roundup

Here are the key news stories impacting Fathom this week:

• Positive Sentiment: Fathom announced a definitive agreement to be acquired by Bed Bath & Beyond in an all-stock deal, giving investors a specific value and likely prompting merger-arbitrage buying. Article Title
• Positive Sentiment: The deal implies roughly $53.38 million in equity value for Fathom and could expand its reach by combining its brokerage, mortgage, title, and SaaS platform with Bed Bath & Beyond’s consumer brand and customer base. Article Title
• Neutral Sentiment: Multiple law firms announced investigations into whether the transaction gives public shareholders a fair price, which may create some overhang but does not change the deal terms right away. Article Title
• Neutral Sentiment: Trading in FTHM was briefly halted due to pending news, reflecting the market’s reaction to the acquisition announcement. Article Title

Fathom Stock Performance

The stock’s 50-day moving average price is $0.74 and its 200 day moving average price is $0.92. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.06 and a quick ratio of 1.06. The firm has a market cap of $36.39 million, a P/E ratio of -1.52 and a beta of 2.32.

Fathom (NASDAQ:FTHM) last announced its quarterly earnings data on Monday, March 30th. The company reported ($0.21) EPS for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.10). The business had revenue of $90.61 million during the quarter, compared to the consensus estimate of $97.55 million. Fathom had a negative return on equity of 49.25% and a negative net margin of 4.83%. As a group, equities analysts predict that Fathom Holdings Inc. will post -0.31 EPS for the current year.

Hedge Funds Weigh In On Fathom

A number of institutional investors have recently added to or reduced their stakes in FTHM. Vanguard Group Inc. increased its holdings in Fathom by 73.2% during the third quarter. Vanguard Group Inc. now owns 784,003 shares of the company’s stock worth $1,411,000 after buying an additional 331,316 shares during the last quarter. Aristides Capital LLC acquired a new position in Fathom during the third quarter worth $360,000. Union Square Park Capital Management LLC acquired a new position in Fathom during the third quarter worth $810,000. Virtu Financial LLC acquired a new position in Fathom during the third quarter worth $61,000. Finally, ORG Partners LLC acquired a new position in Fathom during the fourth quarter worth $30,000. 55.49% of the stock is currently owned by institutional investors and hedge funds.

About Fathom

Fathom Holdings Inc provides a real estate services platform that integrates residential brokerage, mortgage, title, and insurance services in the United States. It operates through three segments: Real Estate Brokerage, Mortgage, and Technology. The Real Estate Brokerage segment provides real estate brokerage services. The Mortgage segment offers residential loan origination and underwriting services. The Technology segment provides Software as a Service solutions and data mining for third party customers.