Shares of Opendoor Technologies Inc OPEN are surging higher on Wednesday following the release of a robust New Residential Sales report from the U.S. Census Bureau and the Department of Housing and Urban Development. Here’s what investors need to know.
What To Know: The report revealed a significant uptick in new single-family home sales. Sales in August were at a seasonally adjusted annual rate of 800,000, a 20.5% increase from the previous month. This positive momentum was further underscored by a 15.4% rise compared to August of last year.
The rise in sales activity could directly benefit companies like Opendoor, as the data suggests a stronger demand environment for housing. A potential increase in sales volumes could lead to higher revenues and improved profitability for firms involved in home construction, sales and financing.
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The median sales price for new houses sold in August climbed to $413,500, an increase from the previous month and the same period last year. For companies like Opendoor, this appreciation in home values can translate to higher margins on sales and an increase in the value of existing property portfolios.
Benzinga Edge Rankings: According to Benzinga Edge rankings for the stock, Opendoor boasts an exceptionally strong Momentum score of 98.98.
Technical Momentum: Opendoor Technologies has demonstrated strong price momentum with a daily change of 11.78%, indicating bullish sentiment. The current price of $7.92 is significantly above the 50-day moving average of $4.39, suggesting a robust upward trend. Key resistance is observed near the recent high of $8.03, while support may be established around the low of $7.31.
Opendoor shares were up 10.23% at $7.81 at the time of publication on Wednesday, according to Benzinga Pro.
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How To Buy OPEN Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Opendoor’s case, it’s in the Real Estate sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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