We wouldn’t blame Opendoor Technologies Inc. (NASDAQ:OPEN) shareholders if they were a little worried about the fact that Eric Chung Wu, the Co-Founder recently netted about US$58m selling shares at an average price of US$21.45. However, that sale only accounted for 6.7% of their holding, so arguably it doesn’t say much about their conviction.
Check out our latest analysis for Opendoor Technologies
Opendoor Technologies Insider Transactions Over The Last Year
Notably, that recent sale by Eric Chung Wu is the biggest insider sale of Opendoor Technologies shares that we’ve seen in the last year. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$19.73. So it may not tell us anything about how insiders feel about the current share price.
In total, Opendoor Technologies insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
NasdaqGS:OPEN Insider Trading Volume November 21st 2021
I will like Opendoor Technologies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Opendoor Technologies
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Opendoor Technologies insiders own about US$1.2b worth of shares (which is 10% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Opendoor Technologies Insider Transactions Indicate?
An insider sold Opendoor Technologies shares recently, but they didn’t buy any. Zooming out, the longer term picture doesn’t give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. To that end, you should learn about the 4 warning signs we’ve spotted with Opendoor Technologies (including 1 which is a bit concerning).
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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.