Opendoor Technologies Inc.’s (NASDAQ:OPEN) stock rose 4.7% last week, but insiders who sold US$70m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$19.96, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Opendoor Technologies
The Last 12 Months Of Insider Transactions At Opendoor Technologies
The Co-Founder, Eric Chung Wu, made the biggest insider sale in the last 12 months. That single transaction was for US$58m worth of shares at a price of US$21.79 each. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$10.71. So it is hard to draw any strong conclusion from it.
In total, Opendoor Technologies insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NasdaqGS:OPEN Insider Trading Volume February 20th 2022
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Opendoor Technologies Insiders Bought Stock Recently
Over the last quarter, Opendoor Technologies insiders have spent a meaningful amount on shares. Specifically, Independent Director Pueo Keffer bought US$2.0m worth of shares in that time, and we didn’t record any sales whatsoever. This is a positive in our book as it implies some confidence.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Opendoor Technologies insiders own 9.4% of the company, currently worth about US$625m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Opendoor Technologies Insiders?
It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn’t so positive. The recent buying by an insider , along with high insider ownership, suggest that Opendoor Technologies insiders are fairly aligned, and optimistic. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You’d be interested to know, that we found 4 warning signs for Opendoor Technologies and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.