Insider transaction activity can provide investors with powerful return signals. Corporate insiders are some of the most informed participants in the market and research shows that their trades can provide valuable insights.
In this report, we are going to highlight some large insider purchases at Opendoor Technologies Inc (OPEN:US). Opendoor is a technology company that offers a digital platform for residential real estate. Using its platform, consumers can buy and sell homes through their mobile devices. The company listed on the NASDAQ last year via a SPAC deal and currently has a market capitalization of $9.1 billion.
Opendoor Technologies Inc: Insider Buying
Our insider transaction data shows that in May, Opendoor board member Pueo Keffer – who has served on the board since October 2015 – purchased stock twice. On 19 May, Keffer picked up 67,700 shares at a price of $14.75 per share, spending $998,600 on the stock. Then, on 26 May, the insider bought another 63,250 shares at a price of $15.85 per share, spending just over $1 million on the stock. In total, Keffer spent just under $2 million on Opendoor shares during the month.
Venture Capital Background
Pueo Keffer has extensive experience in the technology investment space. Since April 2015, he has served as a Managing Director of Access Technology Ventures, the venture capital and growth technology investment arm of Access Industries. Before this, he was a Partner at Redpoint Ventures, which invests in seed, early-stage, and growth-stage companies. Given his industry and company experience, we see his trading activity as very informative.
Opendoor Technologies’ first-quarter results, posted on 11 May, showed that the company has momentum right now. For the quarter ended 31 March, Opendoor registered total homes sold of 2,462, up 190% on Q4 2020, and total homes bought of 3,594, up 78% on Q4 2020. Total revenue for the quarter came in at $747 million, up 200% versus Q4 2020.
Looking ahead, management was optimistic about the company’s prospects. “We exceeded our guidance for Q1 and are experiencing strong momentum as we look forward to the rest of the year,” said Eric Wu, Co-Founder and CEO. “We are energized and focused on the opportunities ahead of us,” he added.
Despite this momentum, Opendoor Technologies stock has been caught up in the recent tech sell-off. Back in mid-February, OPEN stock was trading above $35. Today, however, it is trading near $15. The buying here from Mr. Keffer suggests that he sees value in the stock after the pullback. Given his experience and the size of his purchases, we see his trading activity as bullish.