TLDR
- Eric Wu purchased 300,752 OPEN shares worth $2 million at $6.65 per share on September 30, 2025
- Wu now directly owns 1,950,636 shares following the transaction
- Stock climbed 0.63% to $8.02 in after-hours trading
- Company reports $5.18 billion in revenue but faces profitability challenges
- Market cap stands at $5.91 billion with institutional ownership at 45.36%
Opendoor Technologies co-founder Eric Wu made waves with a $2 million stock purchase on September 30, 2025. Wu, who serves as a director, acquired 300,752 shares at $6.65 each.
The transaction pushed Wu’s direct ownership to 1,950,636 shares. After-hours trading saw the stock tick up 0.63% to $8.02.
Wu’s purchase marks the second insider buying transaction in the past three months. This pattern suggests internal confidence despite external challenges.
The real estate platform operator has built its business around simplifying home transactions. Sellers can offload properties directly to the company through its core “Sell to Opendoor” product.
Financial Metrics Tell Complex Story
Opendoor’s financials reveal a company in transition. Revenue hit $5.18 billion, but the three-year growth rate dropped 18.4%.
The company posted a loss of $0.43 per share. Operating margins remain negative at -3.94%, while net margins sit at -5.89%.
Gross margins of 8.05% point to tight cost controls. These numbers show the uphill battle for profitability.
Liquidity looks strong with a current ratio of 4.35. The quick ratio of 1.97 means short-term obligations can be met comfortably.
However, the debt-to-equity ratio of 3.46 raises eyebrows. This leverage could create pressure if market conditions worsen.
Market Valuation and Investor Sentiment
The company’s market cap hovers around $5.91 billion. The price-to-sales ratio of 1.09 sits far below its historical peak of 7.29.
A price-to-book ratio of 9.27 suggests investors are paying a premium. This creates an interesting valuation dynamic for potential buyers.
Institutional investors hold 45.36% of shares. Insider ownership accounts for 7.64% of the total.
Analysts maintain a cautious stance with a 3.4 recommendation score. This translates to a hold rating rather than aggressive buying or selling.
Technical indicators show moderate momentum. The RSI reading of 55.48 suggests neither overbought nor oversold conditions.
Recent Stock Performance
Volatility has been the name of the game for OPEN stock. Shares previously jumped 16.4% to $10.38 after Jane Street revealed a 5.9% stake.
The stock’s beta of 4.66 confirms high volatility compared to the broader market. Price swings can be dramatic in either direction.
Options activity has leaned bullish recently. High contract volumes and favorable put/call ratios indicate some traders expect gains.
Wu’s $2 million purchase at $6.65 represents a lower entry point than recent highs. The timing could prove strategic if the company executes its turnaround plans.
The Altman Z-Score of 2.21 places the company in a grey area for financial health. This metric suggests neither imminent distress nor complete stability.
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