1 Opendoor Technologies Inc. stock price slumped 2.35% on Friday and closed at $2.08. 2 Recently, Opendoor company’s director Eric Wu sold 500,000 shares of the company. 3 Opendoor company is yet to announce quarterly results on Thursday, 2nd November 2023. Opendoor stock price s...
- 1 Opendoor Technologies Inc. stock price slumped 2.35% on Friday and closed at $2.08.
- 2 Recently, Opendoor company’s director Eric Wu sold 500,000 shares of the company.
- 3 Opendoor company is yet to announce quarterly results on Thursday, 2nd November 2023.
Opendoor stock price slumped 2.35% on Friday to close at $2.08. The stock price is down over 5.02% in the last week. The OPEN stock price has declined by over 17.46% in the current month.
One of the reasons stated behind the price decline this month is the activity of insider sellers in the particular stock. The Opendoor stock is facing a depreciation of over 17% in this month and may reach 20% by the end of the month if selling continues.
Opendoor’s Director Eric Wu Sold 500,000 Shares of the Company
The recent filing has pointed out an insider selling for the Opendoor Technologies stock. The sale has been performed by the company’s co-founder and director Eric Wu.
Eric Wu has sold over 500,000 shares of Opendoor Technologies company. The most recent sale was performed on October 9th, 2023. The price dropped nearly 25% in the past two weeks since the insider selling news came in. The sold shares were worth $1.23 Million.
As per a financial website “gurufocus.com,” this is not the first time the stock has experienced insider selling. The insider transaction history shows a clear trend of insider selling in recent times. Over the past year, there have been a total of 41 insider selling transactions. On the other hand, there has not been any insider buying activity performed in the OPEN stock.
Looking over the data, it is clear that the current financial year 2023 has experienced over 25 insider selling transactions till now. The number of transactions may reach beyond 30 if the selling further continues.
The graph of insider selling vs price shows that selling transactions have been increasing causing the price decline. This could be a signal to investors about the big players losing interest in the company.
Moreover, the Federal Reserve’s recent decision to hike rates has led to a negative impact on many stocks in the current year and Opendoor Technologies is one of them. The Opendoor stock is down over 52.9% in the past three months. The Fed rate hike is expected to further tighten the real estate and housing market business as the rate hike may make borrowing more expensive.
Opendoor Financials and Fundamentals
Opendoor Technologies acts as a medium for the real estate business. The company operates as an online platform for buying and selling residential properties. The company was founded by Eric Wu in December 2013.
Opendoor Technologies holds a market cap of $1.3 Billion. It also has a negative EPS of $2.22. The past four year data shows that the revenues are increasing, however, the profit margin is not aligned with the revenues which is a major concern for the company.
Opendoor To Announce Quarterly Results Soon
Opendoor Technologies is yet to announce its third quarterly results on Thursday, 2nd November which might decide the further price trend. Investors might be eagerly waiting for the performance of Outdoor Technologies in the current quarter.
The Wall Street analysts are expecting the company to improve earning-per-share value by 67.3% to -$0.17. The analysts expect the company to show revenue of $1.012 Billion. The earnings are, however, estimated to come to negative $0.20 Billion.
The company posted surprising results in the last quarter and is expected to deliver more or less the same now. The surprising part about the last quarter was the earnings as the company had turned profitable in the last quarter.
Opendoor Stock Price Hovers Near Support Before Results
The price trend analysis elaborates that the Opendoor stock had turned bearish from the very start of the financial year 2022 and kept on declining continuously for the whole year. The continuous decline eroded over 90% of the value as the price dropped from a high of $15 to a low of $1.
However, this Opendoor stock price has been trying to recover this year. The price surged to a high of $5.41 after continuous improvement in the last two quarters. The price could not continue as the same in the current quarter and has declined to a low of $2 due to some insider selling news and Fed rate hike fears.
Moreover, the price is still above positive trendline support from where buying volume may enter the market. Investors as well as traders are waiting for the current quarterly results after which the price may decide the next trend.
Moreover, the price is still above positive trendline support from where buying volume may enter the market. Investors as well as traders are waiting for the current quarterly results after which the price may decide the next trend.
Opendoor Stock Price Forecast For Upcoming Sessions
The short-term outlook for the Opendoor stock price is negative at the moment. The stock price has slipped below the key EMAs of the 50-day and 200-day, signaling the dominance of sellers. The OPEN stock price rests near an important support of $2 that might defend the price from further fall.
Furthermore, the long-term outlook is on the neutral to bullish side. The stock price seems to have taken support from positive trendline support and has maintained bullishness till now. The bulls may try to take over if they want to defend bullishness in the long run. The breakdown below the trendline support may turn the stock bearish in the long term and the stock may slip to a recent swing low.
Conclusion
Opendoor stock price has recently been affected by various factors including insider selling, a Fed rate hike, and a weak real estate market. Currently, the stock price is below the key EMAs and near critical support of $2. The short-term outlook is negative but the long-term outlook is neutral to bullish if the trendline support holds. The stock may rebound or decline further depending on the market conditions and the company’s performance. Investors should be cautious and monitor the stock closely as the earning days are near.
Technical Levels
- Support levels: $2.02 and $1.66
- Resistance levels: $2.82 and $3.19
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.