Form 4: Fathom Holdings CEO Marco Fregenal Acquires 200,000 Shares and Performance Rights

Fathom Holdings CEO Marco Fregenal reports acquisition of 200,000 shares of common stock and 50,000 performance rights.

Summary

• Marco Fregenal, CEO of Fathom Holdings Inc., reported acquiring 200,000 shares of common stock on November 15, 2024.
• The acquisition was made at a price of $0 per share.
• Fregenal also acquired 50,000 performance rights, each representing a contingent right to receive one share of Fathom Holdings Inc. common stock if certain price targets are met.
• Following the transaction, Fregenal directly owns 1,665,261 shares of common stock.
• He also has indirect ownership of 5,056 shares through his wife and 150,000 shares through the Fregenal 2020 Irrevocable Trust.
• 54,499 of the shares vest in full on September 1, 2025, and 200,000 vest on the first, second and third anniversary of the grant date, November 15, 2024.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The CEO increasing his stake in the company is generally a good sign, suggesting confidence in the company's future. However, the $0 acquisition price for the shares suggests they were granted as compensation, which is a standard practice.

Positives

• The CEO's acquisition of shares and performance rights could be seen as a positive signal, indicating confidence in the company's future performance.

Future Outlook

The vesting of restricted shares and performance rights are tied to future dates and potentially the company's stock performance.

Industry Context

Insider transactions are closely watched by investors as they can provide insights into management's perspective on the company's prospects. This transaction indicates the CEO's belief in the company's future.

Comparison to Industry Standards

• It's common for executives to receive stock options or restricted stock as part of their compensation packages.
• The vesting schedules and performance-based rights are typical mechanisms to align management's interests with those of shareholders.
• Comparing the size of this grant to those of CEOs at similarly sized real estate technology companies (e.g., Compass, Opendoor, eXp World Holdings) would provide a better benchmark.

Stakeholder Impact

• The transaction could positively influence shareholder sentiment due to the CEO's increased stake in the company.
• Employees may view the CEO's acquisition as a sign of confidence in the company's future.

Key Dates

Keywords

Fathom Holdings Inc., Marco Fregenal, Form 4, Beneficial Ownership, Common Stock, Performance Rights, Insider Trading