Shares of Opendoor Technologies (OPEN) jumped nearly 8% last week on Friday after reports that President and interim leader Shrisha Radhakrishna purchased 30,000 shares. Such insider buying often serves as a bullish indicator for investors, suggesting that key executives are optimistic about the company’s trajectory.
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Opendoor Technologies is a digital platform that streamlines the process of home buying and selling. Overall, OPEN stock has been on a blistering run, soaring more than 260% in the last six months in a classic meme-trade surge. Retail enthusiasm and growing hopes for interest rate cuts have mainly fueled the rally.
More Details About the Insider Buying on Opendoor
Opendoor insider Radhakrishna purchased 30,000 shares of OPEN, including 28,400 at $4.27 each and 1,600 shares at $4.42, for a total value of $128,340. The move increased his stake to 4.28 million shares. Importantly, this is the first insider purchase since December 2021, a rare show of confidence that has energized investors.
According to TipRanks, insider trading activity for Opendoor currently carries a Positive signal.
Opendoor Faces Leadership Change
Opendoor is in the midst of a leadership and strategic shift. In mid-August, the company appointed Radhakrishna as President and interim leader after CEO Carrie Wheeler stepped down.
Radhakrishna, who has been the company’s Chief Technology & Product Officer since 2024, is steering the company’s transition from a pure iBuying platform to an AI-powered, multi-product ecosystem. He has described AI as a “core building block” for Opendoor’s next phase of growth.
Is OPEN Stock a Good Buy?
Despite the recent rally, analysts remain bearish on OPEN stock, citing doubts about the sustainability of the surge amid the company’s profitability struggles and high operating costs.
Turning to Wall Street, analysts have a Sell consensus rating on OPEN stock based on one Buy, two Holds, and five Sells assigned in the past three months. Furthermore, the average OPEN price target of $1.02 per share implies 77.08% downside risk.
