Overview
- Shares of Opendoor rose about 9.6% on Friday to close near $6.75 after a filing showed D.E. Shaw held a 6.4% stake as of November 13.
- Most of the position is in D.E. Shaw Valence Portfolios, which focuses on short-term trading, a detail reporters note could tie the timing to Opendoor’s special warrant dividend.
- New York Fed President John Williams said he sees room for a near-term policy adjustment, boosting rate-cut expectations and lifting rate-sensitive real estate stocks.
- Opendoor distributed a warrant dividend on November 21 granting one each of Series K, A, and Z warrants per 30 common shares with exercise prices of $9, $13, and $17, a move that could add future dilution if exercised.
- Sell-side research remains cautious with a Hold-leaning consensus and an average price target around $4.35, while the company continues to operate at a loss and remains highly sensitive to borrowing costs.