EUR/USD likely to find a peak near 1.25: UBS
TEMPE, Ariz.—Sydney Schaub, Chief Legal Officer of Opendoor Technologies Inc. (NASDAQ:OPEN), sold 5,000 shares of the company’s common stock on March 3, according to a recent SEC filing. The shares were sold at an average price of $1.2595, resulting in a total transaction value of $6,297. The transaction comes as the stock has declined nearly 19% in the past week, with InvestingPro data showing the company faces significant debt challenges and rapid cash burn.
The sale was conducted under a Rule 10b5-1 trading plan, which Schaub had adopted on September 3, 2024. This type of plan allows company insiders to set up a predetermined schedule for selling stocks to avoid any allegations of insider trading. According to InvestingPro analysis, Opendoor’s financial health score is rated as WEAK, with the company operating under a substantial debt burden of $2.3 billion.
Following the transaction, Schaub holds 1,166,480 shares of Opendoor Technologies. The shares were sold in multiple transactions, with prices ranging from $1.19 to $1.32, near the stock’s 52-week low of $1.18. Schaub has committed to providing detailed information regarding the number of shares sold at each price upon request. For deeper insights into Opendoor’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Opendoor Technologies reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share of -$0.16, slightly better than the forecasted -$0.17. The company also exceeded revenue projections, posting $1.08 billion against the anticipated $965.32 million, marking a 25% year-over-year increase. However, the full-year revenue for 2024 decreased to $5.2 billion from $6.9 billion in 2023, illustrating the ongoing challenges in the real estate market. Despite these achievements, UBS analyst Chris Kuntarich adjusted the price target for Opendoor to $1.20 from $2.00, maintaining a Neutral rating due to concerns about unsold inventory and market conditions.
UBS forecasts stable revenue growth for Opendoor in the fiscal year 2025, slightly above street expectations, with a contribution margin projected at 5%. However, the firm remains cautious about Opendoor’s profitability, predicting an adjusted EBITDA loss of $102 million for 2025, which is worse than the street’s projection. Opendoor’s outlook for the first quarter of 2025 includes an anticipated revenue range of $1.0 billion to $1.075 billion and a contribution profit between $40 million and $50 million. The company plans to acquire over 3,500 homes in the first quarter, focusing on cost efficiency and profitability.
Opendoor’s recent implementation of a dynamic pricing model may enhance visibility and stimulate growth, though UBS remains cautious due to the expected lack of profitability in the near term. The company is also expanding its offerings, such as the "list with Opendoor" service, to provide sellers with more choices and potentially unlock new revenue streams. Opendoor continues to navigate a challenging real estate market, with efforts to optimize its operations and enhance its pricing strategies as part of its ongoing adaptation to market conditions.
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