Trump Proposes $200 Billion Mortgage Bond Purchase, Boosting Opendoor and Offerpad Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Benzinga
- Stock Surge: Opendoor's shares rose 5.07% to $6.43 at Thursday's close and surged an additional 13.06% in after-hours trading, reflecting strong market reaction to Trump's proposal and indicating investor optimism about a potential recovery in the housing market.
- Market Confidence Boost: Trump's plan to purchase $200 billion in mortgage bonds aims to lower mortgage rates and improve housing affordability for American households, which could stimulate demand for homes and drive growth for iBuying platforms like Opendoor and Offerpad.
- Policy Impact Clarification: Opendoor's executive Kia Nejatian clarified that the proposed ban on institutional investors buying single-family homes would not affect Opendoor, as it does not fall under the category of landlords with over 100 properties, alleviating investor concerns about potential negative impacts.
- Enhanced Market Momentum: Following Trump's proposal, Opendoor scores high on Benzinga's stock rankings, showcasing a favorable long-term price trend that further strengthens investor confidence in the company's future prospects.
Analyst Views on OPAD
Wall Street analysts forecast OPAD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OPAD is 1.75 USD with a low forecast of 1.75 USD and a high forecast of 1.75 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 1.520
Low
1.75
Averages
1.75
High
1.75
Current: 1.520
Low
1.75
Averages
1.75
High
1.75
About OPAD
Offerpad Solutions Inc. is an online real estate company. Through its Cash Offer service, customers complete a few steps and receive a cash offer range on their home, allowing them to schedule their home inspection on their timeline. The Company's other solutions include the B2B Renovate business, Direct+ institutional buyer program, and Agent Partnership Program. The B2B Renovate business leverages its existing logistics, operations, technology, and skill sets to provide renovation services to other businesses, allowing other companies and homeowners to utilize its renovation team to update their portfolio of homes for rent or to sell. The Direct+ institutional buyer program allows investors and single-family rental companies to purchase homes from homeowners, matching investors with sellers. The Agent Partnership Program allows partner agents to request a cash offer on behalf of their clients, list an acquired home prepared for resale, and have access to sellers in defined zones.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
