The stock of Opendoor Technologies Inc. (NASDAQ:OPEN) increased by $0.06 on Monday to finish at $3.49, up 1.75 percent. The last five days have seen an average of 17,628,920 shares of common stock traded. 23 times new highs were reached in the current year, with a gain of $2.33. The average number of shares traded over the last 20 days was 20,891,121, while the average volume over the last 50 days totaled 25,433,449.
OPEN stock dropped -21.40% since last month. On 08/07/23, the company’s shares reached a one-month low of $3.21. The stock touched a high of $6.39 on 08/01/23, after rallying from a low of $0.92 in 52 weeks. The price of OPEN stock has risen by 200.86% or $2.33 this year, reaching a new high 23 times. Still, the stock price is down -45.34% from the 52-week high.
Insider Transactions
OPEN stock investors should be aware that Opendoor Technologies Inc. (OPEN) stock had its last reported insider trading activity 6 days ago on Aug 09. On Aug 09, Director Wu Eric Chung-Wei sold 500,000 shares at $3.43 each. This transaction resulted in the insider making $1,716,900. On Jul 17, Meyer Megan D. sold 39,579 shares at a price of US$4.35. After the transaction, the insider now owns 2,828,949 shares. Schwartz Christina had earlier sold 6,492 shares on Jul 17 for $4.35 a share. The transaction was completed for $28,229.
Valuation Metrics
Beta for the stock is 2.21. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.20, the price-to-book (PB) ratio of 2.08, and the price-to-cash flow ratio of 0.55.
Financial Health
For the three months ended June 29, Opendoor Technologies Inc.’s quick ratio was 33.50, while its current ratio was 46.50, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 2.79, and the total debt to equity ratio is 2.80. As far as profitability goes, gross margin for the trailing twelve months is -0.30% percent. Opendoor Technologies Inc.’s operating margin stood at -9.90% for the same period. Based on annual data, it had gross profit of $667.0 million and revenue of $15.57 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. OPEN’s return on assets (ROA) during the last 12 months has been -21.80%. There was a -14.90% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -119.70%.
Earnings Surprise
According to Opendoor Technologies Inc.’s quarterly financial report for the quarter that ended June 29, it had $2.53 billion in total debt versus $90.0 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.98 billion, while revenues fell by -160.68% to $3.12 billion. It was predicted that Opendoor Technologies Inc.’s quarterly earnings would be -$0.3, but it ended up being -$0.38, beating the consensus by 21.10%. EBITDA was -$49.0 million for the quarter. At the end of Opendoor Technologies Inc.’s most recent quarter ended June 29, its liabilities totaled 3.14 billion, while its total debt was $3.07 billion. Equity owned by shareholders amounts to $659.2 million.
Technical Picture
Here’s a quick look at Opendoor Technologies Inc.’s (OPEN) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 36.48%, suggesting the stock is Neutral, with a 163.62% historical volatility rate.
The stochastic %K and %D were 11.51% and 11.41% respectively, while the average true range (ATR) was 0.41. Based on the 14-day stochastic reading of 12.72%, the RSI (14) reading is 41.70%. On the 9-day MACD Oscillator, the stock is at -0.31, and the 14-day reading is at -0.67.
Analyst Ratings
In its analyst report released on July 24, 2023, Morgan Stanley began covering Opendoor Technologies Inc. (NASDAQ: OPEN). The stock was rated as an Equal-weight by the brokerage firm. Analysts have assigned Opendoor Technologies Inc. (OPEN) an Hold rating. OPEN is a stock that is recommended for selling by 3 brokerage firms, while 4 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 0 rates it overweight and 4 others recommend it as a buy.
What is OPEN’s price target for the next 12 months?
The current consensus forecast for the stock is between $1.00 and $7.00, with a median target price of $3.20. In analyzing these forecasts, the average price target given by analysts for Opendoor Technologies Inc. (OPEN) is $3.31.
