5 Penny Stocks With Biggest Upside

1. Opendoor Technologies Inc. (NASDAQ:OPEN)

Number of Hedge Fund Holders: 41    

Share Price as of December 20: $1.33  

Opendoor Technologies Inc. (NASDAQ:OPEN) operates a digital platform for residential real estate in the United States. On August 4, Opendoor Technologies declared a partnership with Zillow Group, a Seattle-based real estate giant, which will allow home sellers on Zillow’s platform to request an instant cash offer from Opendoor. The transaction of purchase is facilitated by Opendoor. 

On October 25, JMPcurities analyst Nicholas Jones maintained an Outperform rating on Opendoor Technologies Inc. (NASDAQ:OPEN) stock and lowered the price target to $4.50 from $9, noting that valuations in the sector have compressed materially as stocks with exposure to residential real estate have seen sharp multiple compression on fears around the increasing probability of a 2023 recession, rising interest rates, and low affordability.

At the end of the third quarter of 2022, 41 hedge funds in the database of Insider Monkey held stakes worth $396.4 million in Opendoor Technologies Inc. (NASDAQ:OPEN), compared to 39 in the preceding quarter worth $861.7 million.

In its Q4 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Opendoor Technologies Inc. (NASDAQ:OPEN) was one of them. Here is what the fund said:

“The Fund invests in secular growth and innovative businesses across all market capitalizations, with the bulk of the portfolio landing in the large-cap zone. The Fund is categorized as US Large Growth by Morningstar. As of the end of the fourth quarter, the largest market cap holding in the Fund was $2.5 trillion and the smallest was $791 million. The median market cap of the Fund was $27.5 billion. The Fund had $1.7 billion of assets under management. The Fund had investments in 63 securities. The Fund’s top 10 positions accounted for 45.4% of net assets. Fund inflows were positive for 2021. We sold Opendoor Technologies Inc. because we identified issues relating to our long-term theses in the company, and we decided to exit the positions to fund other purchases.”

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