Why Opendoor (OPEN) Insiders Are Doubling Down Despite Mounting Losses
Wall Street's latest head-scratcher: Opendoor insiders keep buying as losses balloon. What do they see that the market doesn't?
Behind the bleeding balance sheet
While retail investors panic-sell, company brass is loading up on shares. Either they know something big's coming—or they're betting heavy on the 'greater fool' theory.
The insider playbook
Executive purchases often signal confidence. But in this market? Could just be another case of 'fake it till you make it' finance theater.
One thing's certain: When the suits buy while the ship sinks, it's either the smartest contrarian play—or the dumbest ego trip. Place your bets.
TLDR
- Opendoor (OPEN) shares dropped Friday after Q3 earnings showed revenue declined and losses widened year-over-year
- The company issued 180.6 million new shares at $6.56 each, raising dilution concerns among investors
- New CEO Kaz Nejatian expects profitability by end of 2026 through AI-powered operations and consultant cuts
- Insiders made three purchases since August with no sales, showing confidence in turnaround plans
- Wall Street maintains “Hold” rating with highest price target at $6, suggesting potential 6% downside
Opendoor stock took a hit Friday following third-quarter earnings that disappointed investors. The online real estate marketplace reported declining revenue and wider losses compared to the same period last year.
$OPEN Earnings:
– Revenue: $915 million
"We are refounding Opendoor as a software and AI company. In my first month as CEO, we've made a decisive break from the past — returning to the office, eliminating reliance on consultants, and launching over a dozen AI-powered products… pic.twitter.com/IdCM3WZdkg
— AlphaSense (@AlphaSenseInc) November 6, 2025
The company posted an earnings per share loss of $0.12. This missed analyst expectations of a $0.07 loss. Revenue came in at $915 million, falling short of the $922.05 million forecast.
Management warned that losses will grow even larger in the fourth quarter. This guidance added to investor concerns about the company’s near-term financial health.
Opendoor Technologies Inc., OPEN
The stock has been on a wild ride this year. Despite Friday’s decline, OPEN trades at more than 10 times its price from early June. The surge came from retail investors calling themselves the “Open Army.”
The company registered the sale of 180.6 million shares at $6.56 each. This represents a major dilution event for existing shareholders. The registration was filed Thursday with the Securities and Exchange Commission.
Opendoor completed this share sale under its existing shelf registration statement. The filing included a legal opinion from Latham & Watkins LLP regarding share validity.
New Leadership Brings Turnaround Plans
CEO Kaz Nejatian is implementing changes across the San Francisco-based company. He aims to achieve profitability by the end of 2026.
Nejatian is cutting external consultants to reduce costs. The company is shifting to an AI-powered operating model for efficiency gains.
His vision involves transforming Opendoor into a streamlined real estate transaction marketplace. Success could drive the stock price higher over time.
The CEO’s entire compensation package is tied to OPEN stock performance. This structure aligns his interests directly with shareholders.
Insider Activity Shows Confidence
Company insiders have been buying shares recently. They made three purchases since August with zero sales during that period.
This insider buying suggests confidence in the company’s long-term prospects. It contrasts with the broader market skepticism reflected in analyst ratings.
The stock continues trading above its 100-day moving average. This technical indicator shows bulls maintain control of the price action.
Opendoor maintains strong liquidity with a current ratio of 4.35. The company generated $511 million in free cash FLOW over the last twelve months.
The market capitalization stands at $4.83 billion. The stock recently traded 15.57% below its 52-week high of $10.87.
