So OPEN just reported earnings a couple days ago and I've been watching this stock. The shares are sitting around $5.11 right now, down pretty significantly this year. What caught my attention is the mixed bag of results - they're still losing money with an expected EPS around negative $0.09, though that's technically better than last year's negative $0.12. Revenue came in around $666 million which honestly looks weak compared to what they pulled in previously. The real estate market is just brutal right now with mortgage rates crushing everything. That said, there were some bright spots. Home acquisitions jumped 46% sequentially in Q4 and properties under contract surged over 300%, so there's activity happening even if the top line is contracting. The derivatives market was pricing in roughly 8.77% volatility heading into the announcement. What's interesting is how split the analyst community is on open stock price today. You've got Eric Jackson from EMJ Capital out there with this crazy $82 price target, which would be like 1,400% upside from here. That guy was instrumental in the CEO change last year that sent shares absolutely nuts. Then you've got more measured voices like Gaurav Mehta suggesting $8 as a target. The consensus sits around $6 with a Hold rating overall - 2 buys, 2 holds, and a sell. Jackson's thesis is basically that housing recovery takes a couple quarters to show up in the numbers, so he's betting on better results later this year. The stock did pop 15% in April on some of his commentary floating around. Honestly though, this thing trades like a meme stock sometimes so you've got to be careful with position sizing. Worth monitoring but definitely not a slam dunk either way.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin