Opendoor (OPEN) Stock Holds Support as Co-founder Doubles Down with $2 Million Buy

TLDR

Table of Contents

Opendoor co-founder and director Eric Wu purchased 300,752 shares worth $2 million on September 30, 2025
Wu bought shares at $6.65 each, bringing his direct ownership to 1,950,636 shares
The stock rose 0.63% in after-hours trading to $8.02 following the purchase
Opendoor faces financial challenges with declining revenues of $5.18 billion and a negative EPS of -$0.43
The company’s market capitalization stands at approximately $5.91 billion

Eric Wu, co-founder and director of Opendoor Technologies, made a $2 million investment in the company on September 30, 2025. The transaction involved purchasing 300,752 shares at a price of $6.65 per share.

This purchase brings Wu’s direct ownership to 1,950,636 shares. The stock saw a modest increase following the transaction, rising 0.63% to $8.02 in after-hours trading.

The investment represents a vote of confidence from one of the company’s founders. Wu’s decision to increase his stake comes at a time when the company faces several financial headwinds.

Day 43.
Out here again talking Rising Dynasty.
The middle class can jump the line in life—just like Captain Tom in the Bering Sea taking a fishing vessel head-on into 40-foot waves every day. Discipline, courage, conviction.
I’m a proud $OPEN and $BETR shareholder because a… pic.twitter.com/S1AAnuAxpC
— Eric Jackson (@ericjackson) September 30, 2025

Opendoor operates as an end-to-end real estate platform. The company’s main service allows homeowners to sell properties directly to Opendoor, which then resells them to buyers.

The platform also offers services like “List with Opendoor” and the “Opendoor Marketplace.” These tools connect sellers with buyers and provide integrated title insurance and escrow services through company subsidiaries.

Financial Performance and Challenges

The company’s recent financial metrics paint a mixed picture. Revenue stands at $5.18 billion, but the three-year revenue growth rate shows a decline of 18.4%.

Opendoor reported an earnings per share of -$0.43. The operating margin sits at -3.94%, while the net margin is -5.89%.

The gross margin of 8.05% suggests limited pricing power. These numbers reflect the company’s ongoing struggle with profitability and operational efficiency.

On the positive side, liquidity ratios show strength. The current ratio of 4.35 indicates solid short-term liquidity, while the quick ratio of 1.97 demonstrates the ability to meet immediate obligations.

The debt-to-equity ratio of 3.46 points to high leverage. The company’s Altman Z-Score of 2.21 places it in the grey area for financial stress.

Market Position and Valuation

Opendoor’s market capitalization is approximately $5.91 billion. The price-to-sales ratio stands at 1.09, well below the historical high of 7.29.

The price-to-book ratio of 9.27 shows a premium valuation relative to book value. This creates an interesting dynamic for investors evaluating the company’s worth.

Institutional ownership accounts for 45.36% of shares. Insider ownership sits at 7.64%, reflecting balanced interest from different stakeholder groups.

Analyst sentiment remains cautious with a recommendation score of 3.4. This suggests a hold position rather than a strong buy or sell recommendation.

Technical indicators show moderate momentum. The Relative Strength Index sits at 55.48, while the stock’s beta of 4.66 indicates high volatility.

The company has seen insider buying activity with two transactions over the past three months. Wu’s purchase adds to this pattern of insider confidence.

Recent stock performance has been volatile. Shares previously surged 16.4% to $10.38 after Jane Street disclosed a 5.9% stake in the company.

Options trading activity has shown bullish sentiment. High volume of contracts and favorable put/call ratios suggest some investors expect upward movement.

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