Opendoor Technologies (OPEN) has announced a special dividend for its investors. The company will give current shareholders three new warrants that can turn into stock later at set prices. The goal, according to management, is to let shareholders benefit directly from any recovery in the company’s share price.
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Each person who owns shares as of November 18 will get one Series K, one Series A, and one Series Z warrant for every thirty shares they hold. The company expects to issue these on November 21. The warrants will trade on Nasdaq under the symbols OPENW, OPENL, and OPENZ. Investors can either sell them right away or hold them for potential gains later.
Meanwhile, OPEN shares jumped 10.50% on Wednesday to close at $9.37. Moreover, the stock has skyrocketed by over 480% so far in 2025.
How the Warrants Work
The three warrants have different prices, which can be used to buy stock. Series K has an exercise price of $9, Series A is set at $13, and Series Z is at $17. They will all expire on November 20, 2026. However, they can end early if Opendoor’s stock trades above certain levels for a set number of days. This early expiration rule helps keep the program tied to performance.
These warrants do not change the share count today. They only add new shares if investors decide to exercise them later. If that happens, Opendoor would get fresh capital from the cash used to buy the shares. That money could help fund growth and improve the balance sheet.
Why It Matters to Investors
Opendoor’s Chief Executive Officer, Kaz Nejatian, who just pledged to buy $1 million worth of company shares, said the idea is to better align management and shareholders. He noted that investors who stayed with the company should share in its future success. This plan gives them that chance.
No action or cost is required for eligible holders. But investors who hold their stock in a margin account or have lent out their shares may want to confirm with their broker that they are still listed as the record owner. Only record holders as of November 18 will receive the new warrants. The company plans to file more details with the Securities and Exchange Commission before the distribution date. Once the warrants begin trading, they will act like any other listed security that investors can sell or keep.
For shareholders, this move adds a new way to take part in Opendoor’s recovery story without extra cost. It also shows that management wants investors to gain from any long-term progress in the company’s stock price.
Is OPEN Stock a Buy, Hold, or Sell?
Despite the growing GameStop (GME) vibes, Opendoor boasts a Moderate Sell consensus among the Street’s analysts. The average OPEN stock price target is $3.76, implying a 59.87% downside from the current price.
