Opendoor Technologies Inc.'s (NASDAQ:OPEN) stock rose 10% last week, but insiders who sold US$223k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$3.17, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Opendoor Technologies

In the last twelve months, the biggest single sale by an insider was when the President of Sell Direct & Services, Megan Toolson, sold US$213k worth of shares at a price of US$3.24 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$2.19. So it may not tell us anything about how insiders feel about the current share price. Megan Toolson was the only individual insider to sell shares in the last twelve months.

Megan Toolson divested 70.53k shares over the last 12 months at an average price of US$3.17. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Opendoor Technologies

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Opendoor Technologies insiders own 3.5% of the company, worth about US$50m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Opendoor Technologies Insiders?

It doesn't really mean much that no insider has traded Opendoor Technologies shares in the last quarter. Still, the insider transactions at Opendoor Technologies in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Opendoor Technologies. For example - Opendoor Technologies has 4 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.