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

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

Key Fathom News

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 has a market capitalization of $36.39 million, a price-to-earnings ratio of -1.52 and a beta of 2.32. The company’s fifty day simple moving average is $0.74 and its 200 day simple moving average is $0.92. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.09.

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

Hedge Funds Weigh In On Fathom

Institutional investors and hedge funds have recently modified their holdings of the stock. ORG Partners LLC acquired a new position in shares of Fathom in the fourth quarter valued at $30,000. Virtu Financial LLC acquired a new position in shares of Fathom in the third quarter valued at $61,000. XTX Topco Ltd increased its holdings in shares of Fathom by 27.9% in the fourth quarter. XTX Topco Ltd now owns 63,748 shares of the company’s stock valued at $64,000 after purchasing an additional 13,911 shares during the last quarter. Renaissance Technologies LLC increased its holdings in shares of Fathom by 72.9% in the first quarter. Renaissance Technologies LLC now owns 147,807 shares of the company’s stock valued at $78,000 after purchasing an additional 62,307 shares during the last quarter. Finally, Aristides Capital LLC acquired a new position in shares of Fathom in the third quarter valued at $360,000. 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.