Opendoor Technologies Inc. (OPEN) expanding its growth trajectory ahead

Opendoor Technologies Inc. (NASDAQ: OPEN) stock jumped 8.75% on Monday to $1.74 against a previous-day closing price of $1.60. With 25.19 million shares changed hands, the volume of the stock remained lighter than its average volume of 25.93 million shares. During the session, the Real Estate Services company that operates in wider Real Estate sector, reached to the highest price of $1.7700 whereas the lowest price it dropped to was $1.6100. The 52-week range on OPEN shows that it touched its highest point at $11.39 and its lowest point at $0.92 during that stretch. It currently has a 1-year price target of $4.29.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of OPEN was up-trending over the past week, with a rise of 4.82%, but this was up by 38.10% over a month. Three-month performance dropped to -28.69% while six-month performance fell -66.34%. The stock lost -82.15% in the past year, while it has gained 50.00% so far this year. A look at the trailing 12-month EPS for OPEN yields -1.83 with Next year EPS estimates of -1.54. For the next quarter, that number is -0.78. This implies an EPS growth rate of -138.80% for this year and 34.50% for next year. EPS is expected to grow by 5.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -67.40%.

Float and Shares Shorts:

At present, 629.53 million OPEN shares are outstanding with a float of 537.71 million shares on hand for trading. On Oct 13, 2022, short shares totaled 79.82 million, which was 12.69% higher than short shares on Sep 14, 2022. In addition to Mr. Eric Chung Wei Wu as the firm’s Co-Founder, Chairman & CEO, Mr. Ah Kee Low serves as its Pres.

Institutional Ownership:

Through their ownership of 72.82% of OPEN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 37.99% of OPEN, in contrast to 27.06% held by mutual funds. Shares owned by individuals account for 26.23%. As the largest shareholder in OPEN with 9.85% of the stake, The Vanguard Group, Inc. holds 62,436,723 shares worth 62,436,723. A second-largest stockholder of OPEN, T. Rowe Price Associates, Inc., holds 33,251,398 shares, controlling over 5.24% of the firm’s shares. Sylebra Capital Ltd. is the third largest shareholder in OPEN, holding 32,247,324 shares or 5.09% stake. With a 2.87% stake in OPEN, the Vanguard Real Estate Index Fund is the largest stakeholder. A total of 18,209,997 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.58% of OPEN stock, is the second-largest Mutual Fund holder. It holds 16,341,522 shares valued at 18.96 million. First Trust Dow Jones Internet In holds 2.41% of the stake in OPEN, owning 15,272,635 shares worth 17.72 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OPEN since 14 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With OPEN analysts setting a high price target of $13.00 and a low target of $1.00, the average target price over the next 12 months is $4.32. Based on these targets, OPEN could surge 647.13% to reach the target high and fall by -42.53% to reach the target low. Reaching the average price target will result in a growth of 148.28% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. OPEN will report FY 2022 earnings on 02/23/2024. Analysts have provided yearly estimates in a range of -$2.00 being high and -$2.80 being low. For OPEN, this leads to a yearly average estimate of -$2.38. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Opendoor Technologies Inc. surprised analysts by -$0.98 when it reported -$1.47 EPS against a consensus estimate of -$0.49. The surprise factor in the prior quarter was -$0.12. Based on analyst estimates, the high estimate for the next quarter is -$0.48 and the low estimate is -$1.26. The average estimate for the next quarter is thus -$0.85.

Summary of Insider Activity:

Insiders traded OPEN stock several times over the past three months with 2 Buys and 24 Sells. In these transactions, 15,310,241 shares were bought while 5,543,896 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 45 over the past year. The total number of shares bought during that period was 17,050,558 while 7,487,508 shares were sold.

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