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Inside Trade Profile: OpenDoor (OPEN)

by | May 23, 2021

OpenDoor (OPEN) with a large open market buy on 5/19 from a director, Pueo Keffer, of 67,700 shares at $14.75, a nearly $1M purchase. This is the first open market buy from an insider in the name since it went public in 2020. OPEN has traded poorly in 2021 down around 33% and back around a big area of interest from late 2020 before the stock when on a strong run. OPEN is forming a larger bull wedge and a breakout above $18 can make a big trend shift back higher. The $8.18B company trades 3.16X sales and 3.89X cash with 92% growth expected in FY21 and 83% in FY22. Opendoor is an online marketplace for home sellers, like others like Redfin and Zillow. OPEN is growing at a fast rate and expanding their platform into more buying of homes as well as their trade-in program which helps customers both sell their home and buy a home in one transaction. OPEN uses AI and analytics to model out value for homes and help drive better sales margins on their inventory. They noted in May that the current environment is experiencing the fastest home price appreciation in decades with multiple offers and higher conversion rates. In Q1 they set several records including offers, seller conversion, and launching in new markets. Analysts have an average target for shares of $36.50 and a Street High $72. OpCo with a $25 PT on 5/12 and the analyst is increasingly bullish on Opendoor’s market opportunity, given comments of servicing $1.4M home in LA, suggesting a bigger SAM than expected. Additionally, the recent launch of Opendoor-Backed Offers positions the company to assist buyers, better positioning Opendoor to serve both sides of the transaction and drive higher attach rates of adjacent services. Short interest is 4.72%. Hedge fund ownership rose 3% in Q1, CandleStick Capital a top buyer of 1.16M shares.

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