Former Opendoor Technologies Inc. ( OPEN ) CEO Carrie Wheeler sold 7 million shares worth $34.95 million on Tuesday, according to Securities and Exchange Commission Form 144 filings.

The stock sale comes after a retail investor-driven rally saved the company from Nasdaq delisting and pushed shares up over 325% in recent months.

Wheeler Exits After Activist Campaign

Wheeler’s departure followed a successful campaign by hedge fund manager Eric Jackson and retail investors who ousted the former CEO. Jackson, founder of EMJ Capital Ltd., led the “OPEN Army” movement on social media platform X, drawing comparisons to GameStop Corp. ( GME )‘s 2021 meme-stock surge.

The shares Wheeler sold were restricted stock that vested on Sept. 15, 2021, under a registered compensation plan. Morgan Stanley Smith Barney LLC handled the transaction at approximately $4.99 per share.

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Meme Rally Prevents Delisting Crisis

Opendoor’s stock surge came at a critical time. The company faced potential Nasdaq delisting for failing to maintain the exchange’s $1 minimum bid price requirement. The retail-driven rally pushed shares above the threshold long enough to regain compliance, allowing the board to cancel a planned reverse stock split.

From June to August, shares rocketed from $0.50 to over $5, helping the company avoid the delisting fate. The stock has gained 222.64% year-to-date, trading at $5.13 as of Wednesday’s close.

Financial Challenges Persist Despite Rally

Despite posting its first adjusted EBITDA profit of $23 million in three years during the second quarter, Opendoor ( OPEN ) faces headwinds. CFO Selim Freiha warned of “lower clearance and record delistings” in housing markets, with contribution margins expected to compress to 2.8%-3.3% in the second half.

The company reported $1.57 billion in second-quarter revenue, beating consensus estimates of $1.50 billion, but net losses of $29 million persist. Interim CEO Shrisha Radhakrishna, the company’s CTO, now leads the search for permanent leadership.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.