Opendoor Technologies Inc ( OPEN ) shares are hitting their highest levels of August following a strong momentum surge last month. Here’s what you need to know.

What To Know: Opendoor ( OPEN ) shares gained significant attention from retail traders last month after a hedge fund manager flagged the stock as a potential “100-bagger” over the next few years, adding that the stock should be trading at $40 right now.

Opendoor's ( OPEN ) high short interest made it a popular target for retail traders, which helped it become one of the market’s latest meme stocks. Opendoor ( OPEN ) is up more than 300% over the past three months and the stock now has a strong momentum score of 89.9, per Benzinga’s Edge rankings data.

Following the initial surge in shares, short interest declined from 24.3% to 21.57%, suggesting that short covering was likely driving some of the outsized gains. The latest short interest data from Benzinga shows that 23.9% of the float is currently sold short.

Opendoor ( OPEN ) shares fell in early August after the company reported financial results for the second quarter and issued weak guidance. Opendoor ( OPEN ) guided for third-quarter revenue of $800 million to $875 million versus estimates of approximately $1.22 billion. The company also forecasted an adjusted EBITDA loss of $21 million to $28 million after reporting its first quarter of positive adjusted EBITDA since 2022.

On Wednesday, Keefe, Bruyette & Woods downgraded Opendoor ( OPEN ) from Market Perform to Underperform and set a price target of $1, warning of widening losses.

Volume is significant at approximately 237 million shares, exceeding the average volume of around 186 million, signaling strong buying interest. This high volume during the price increase reinforces the strength of the current move, even as analysts have adjusted their forecasts downward, projecting increasing losses for the upcoming years.

The RSI is calculated at 75.23, indicating the stock is in overbought territory, which may suggest a pullback could be imminent. The MACD shows a bullish crossover, but the lines are beginning to converge, hinting at potential weakening momentum.

OPEN Price Action: Opendoor ( OPEN ) shares were up 22.47% at $2.96 at the time of publication Thursday, according to Benzinga Pro.

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