Opendoor Technologies (OPEN), the online home buying and selling platform, drew attention after CEO Kaz Nejatian pledged to buy $1 million worth of company shares. The move shows his confidence in the business and its future potential.
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CEO’s Public Promise Draws Interest
In a post on X (formerly Twitter), Nejatian wrote, “Tomorrow is the first day I am allowed to buy $OPEN and my family is buying $1M at the open.” It marks his first planned insider purchase since becoming CEO two months ago and comes soon after Opendoor released its third-quarter results.
The stock reacted positively to the news. Shares climbed about 6.4% to close at $8.48 on Tuesday, extending Monday’s gain of more than 20%.
Warrants Help Drive Gains in OPEN Stock
Opendoor’s rally also followed the company’s plan to give shareholders tradable warrants, a step meant to reward investors and discourage short-selling. The news came with recent Q3 earnings results, which showed better control over housing inventory, though lower sales and continued losses still reflected the slow housing market.
Analysts believe these shareholder-focused actions could help lift confidence in the stock, which has seen wide swings in recent months.
Analysts See Signs of a Turnaround
Investor Eric Jackson of EMJ Capital, known for his early bullish stance on Carvana (CVNA), noted that insider buying often helps improve a company’s image with investors. When company leaders put their own money on the line, he said, it can attract more retail interest and strengthen market sentiment.
With Nejatian’s $1 million stock pledge and new incentives, Opendoor is aiming to rebuild investor trust and strengthen confidence in the stock.
Is OPEN Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on OPEN stock based on two Buys, two Holds, and two Sells assigned in the past three months. Furthermore, the average OPEN price target of $5.68 per share implies a 33.02% downside risk.
