Opendoor, whose stock value has soared since early July, has postponed a particular stockholder assembly initially scheduled for in the present day to handle a Nasdaq itemizing notification.
The vote, now rescheduled for Aug. 27, issues a possible reverse stock break up that, if authorised by shareholders and enacted by the board, may assist treatment the corporate’s share value deficiency.
In May, the corporate was instructed by Nasdaq it was out of compliance with itemizing guidelines that require it to keep up a $1 per share closing value for 30 consecutive days. In truth, till the runup, it had not closed above $1 per share since April, in accordance with Yahoo Finance.
“In gentle of the current volatility within the buying and selling of Opendoor’s frequent stock and the impression on its buying and selling value, the Board believes it’s in one of the best pursuits of Opendoor and its stockholders to adjourn the Special Meeting in the present day to permit for extra time to evaluate market circumstances and the Company’s stock value earlier than holding the Special Meeting,” a press launch mentioned.
On June 25, Opendoor’s stock value was simply over 51 cents per share and after some ups and downs, was at over 53 cents per share on June 30.
That’s when the worth began rising, slowly at first, to $1.04 per share on July 15. Three days later it closed at $2.25 per share.
The stock peaked at $4.97 per share on July 21, earlier than closing that day at $3.21.
Last Friday, it reached $2.54 per share.
For Opendoor to regain compliance, it wants to shut over not less than $1 per share for at least 10 consecutive enterprise days by Nov. 24. However, Nasdaq in its sole discretion can prolong this minimal 10-day requirement.
“As of in the present day, Nasdaq has not notified the Company that it has regained compliance with Nasdaq itemizing necessities,” the press launch mentioned.
Opendoor made the postponement announcement earlier than the market opened on Monday. While at one level the worth hit an intraday excessive of $2.75 per share, it started falling and by 11:30 a.m., it was at $2.46 per share.
The sharp acquire the week of July 14 acquired the eye of Ryan Tomasello, who follows the stock for Keefe, Bruyette & Woods.
In a July 17 report, he pointed to 113% improve in value over the last few days, “which we consider is a retail-driven squeeze because the stock has turn out to be well-liked on social threads like Reddit and X.
“We stay cautious on the shares at present ranges as Opendoor’s capacity to scale profitability stays unsure, significantly as the corporate maintains a conservative posture going through an unsure housing backdrop in 2H,” Tomasello mentioned, noting the corporate’s house buy volumes “stay subdued at beneath [100 houses purchased per week], which suggests draw back threat to 3Q consensus.”
Opendoor is ready to report second quarter outcomes on Aug. 5.
In the primary quarter, it misplaced $85 million, following losses of $113 million within the fourth quarter, $78 million for the third quarter, $92 million through the second quarter and $109 million within the first quarter of 2025.
As for these upcoming second quarter outcomes, “Estimates from third-party tracker Datadoor recommend second quarter income may are available approximately10% above administration’s steerage and 9% above consensus,” Tomasello mentioned. “Opendoor tends to information income conservatively, so we don’t count on a second quarter beat to be considered as incremental by basic buyers.”
Tomasello mentioned whereas Opendoor administration had “achieved a pleasant job” managing the corporate’s bills, he questioned how a lot room is left for additional cuts with out hurting the corporate’s enterprise. He pointed to an Inman report of one other 40 layoffs on the firm in June and transitioning 70 staff into new roles.
Going ahead, he thinks Opendoor will pivot to asset-light payment earnings streams..
“We count on Opendoor to proceed to give attention to increasing non-cash provide payment streams that don’t require utilization of its steadiness sheet,” Tomasello mentioned. “To that finish, the corporate just lately introduced the growth of its agent partnership program with the launch of ‘Key Connections,’ which seems to be a lead technology product that connects excessive intent sellers in Opendoor’s funnel with itemizing brokers.”
