FTHM Should I Buy
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Fathom Holdings Inc (FTHM) is not a strong buy at this moment for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock exhibits weak technical indicators, insider selling activity, and a declining financial performance. While there are positive catalysts such as new leadership and a favorable analyst rating, the company's current financial health and bearish technical trends do not support an immediate buy decision.
The technical indicators for FTHM are bearish. The MACD is negatively expanding below zero, RSI is neutral at 30.817, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 0.952, with resistance levels at 1.04 and 1.128. Overall, the trend suggests weakness in the stock price.
New leadership with Lori Muller as President, who has a strong track record in the real estate sector.
Analyst rating by Roth Capital with a Buy recommendation and a $2.50 price target, citing an inflection point and margin improvement potential.
Expansion into 42 states and over 15,000 licensed agents, indicating a strong operational footprint.
Insiders are selling heavily, with a 3108.64% increase in selling activity over the last month.
Weak financial performance in Q3 2025, with a 46.35% YoY decline in net income, a 62.50% drop in EPS, and a decrease in gross margin.
Bearish technical indicators and a regular market price decline of -4.90%.
In Q3 2025, revenue increased by 37.72% YoY to $115.31 million, but net income dropped by 46.35% YoY to -$4.36 million. EPS declined by 62.50% YoY to -0.15, and gross margin fell to 7.82%, down 3.81% YoY. The financials indicate growth in revenue but significant challenges in profitability.
Roth Capital analyst Tom Hayes assumed coverage with a Buy rating and a $2.50 price target. The analyst believes the company is nearing an inflection point and highlights improved margins and profitability potential. However, the stock's current price is far below the target, reflecting market skepticism.
