Olaplex (NASDAQ:OLPX) Downgraded by Canaccord Genuity Group to "Hold"

Key Points

• Canaccord Genuity downgraded Olaplex from a "strong-buy" to a "hold", and the stock carries a consensus analyst rating of Hold with an average price target of $1.89.
• Henkel agreed to acquire Olaplex for $2.06 per share (≈$1.4 billion), a roughly 55% premium that sparked heavy bullish trading and unusual call-option activity.
• Several shareholder-law firms have launched investigations into the fairness of the sale, creating potential litigation risk that could delay or complicate closing; insiders have also sold shares recently (215,442 shares over 90 days).

Olaplex (NASDAQ:OLPX - Get Free Report) was downgraded by equities researchers at Canaccord Genuity Group from a "strong-buy" rating to a "hold" rating in a research note issued on Thursday,Zacks.com reports.

Several other analysts have also recently issued reports on OLPX. Evercore set a $2.50 price target on shares of Olaplex in a research report on Friday, March 6th. Morgan Stanley set a $1.40 price objective on shares of Olaplex in a report on Tuesday, March 10th. Northland Securities downgraded shares of Olaplex from a "strong-buy" rating to a "hold" rating in a research note on Thursday. Weiss Ratings reiterated a "sell (d)" rating on shares of Olaplex in a report on Thursday, January 22nd. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Olaplex in a research report on Wednesday, March 4th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $1.89.

Olaplex Trading Up 0.5%

Shares of NASDAQ OLPX opened at $2.02 on Thursday. Olaplex has a twelve month low of $0.99 and a twelve month high of $2.02. The company has a current ratio of 4.58, a quick ratio of 4.00 and a debt-to-equity ratio of 0.40. The stock has a fifty day simple moving average of $1.51 and a 200-day simple moving average of $1.36. The stock has a market capitalization of $1.35 billion, a PE ratio of -202.00 and a beta of 2.24.

Olaplex (NASDAQ:OLPX - Get Free Report) last posted its earnings results on Thursday, March 5th. The company reported $0.01 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.01. Olaplex had a positive return on equity of 1.07% and a negative net margin of 2.19%.The firm had revenue of $105.12 million for the quarter, compared to analyst estimates of $104.21 million. During the same quarter in the prior year, the company earned $0.01 EPS. Olaplex's revenue was up 4.4% on a year-over-year basis. On average, equities analysts forecast that Olaplex will post 0.1 earnings per share for the current year.

Insider Buying and Selling

In related news, General Counsel John C. Duffy sold 34,962 shares of Olaplex stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $1.26, for a total value of $44,052.12. Following the completion of the transaction, the general counsel owned 982,855 shares in the company, valued at $1,238,397.30. The trade was a 3.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Trisha L. Fox sold 25,421 shares of the business's stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $1.26, for a total transaction of $32,030.46. Following the transaction, the insider owned 1,080,363 shares of the company's stock, valued at $1,361,257.38. This trade represents a 2.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 215,442 shares of company stock worth $271,457. Company insiders own 4.30% of the company's stock.

Institutional Investors Weigh In On Olaplex

A number of hedge funds and other institutional investors have recently modified their holdings of OLPX. Headlands Technologies LLC acquired a new position in shares of Olaplex during the fourth quarter worth $25,000. Chilton Capital Management LLC acquired a new stake in Olaplex in the third quarter valued at $26,000. Abel Hall LLC acquired a new stake in Olaplex in the fourth quarter valued at $27,000. Schonfeld Strategic Advisors LLC purchased a new stake in Olaplex during the 3rd quarter worth about $30,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new stake in Olaplex during the 3rd quarter worth about $32,000. 87.37% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Olaplex

Here are the key news stories impacting Olaplex this week:

• Positive Sentiment: Henkel agreed to acquire Olaplex for $2.06 per share (≈$1.4 billion), a ~55% premium to the pre-announcement close; the deal is being pitched as enabling greater investment and distribution for the brand. OLAPLEX to be Acquired by Henkel for $1.4 Billion
• Positive Sentiment: Heavy bullish activity and strong market reaction: premarket headlines and commentary noted a large surge after the announcement, and unusual options activity (large buy of calls) signaled speculative and takeover-arbitrage positioning. Wall Street Breakfast Podcast: Henkel Adds Shine With Olaplex
• Neutral Sentiment: Small analyst adjustments: Telsey Advisory Group raised its price target marginally to $2.06 and kept a "market perform" rating — a modest validation of the deal price but not a strong new bullish signal. Benzinga
• Negative Sentiment: Multiple shareholder-law firms have launched investigations into whether Olaplex shareholders received a fair price or whether there were breaches of fiduciary duty in connection with the sale — this raises litigation risk and could complicate closing/timing. M&A Class Action Firm Announces Investigation Ademi Firm Investigates Fair Price
• Negative Sentiment: Critical analysis and a downgrade: commentary pieces flagged negative implications of the sale for certain stakeholders, and Northland downgraded the stock from "strong-buy" to "hold" — both could reduce enthusiasm among some investors. Henkel Buys Olaplex - Implications Are Negative Zacks (Northland downgrade)

About Olaplex

Olaplex, Inc NASDAQ: OLPX is a specialty haircare company known for its patented bond-building technology designed to repair and strengthen hair from within. The company’s core offerings encompass a range of professional salon treatments and at-home maintenance products that target chemical damage, breakage and split ends. Olaplex formulations are built around a proprietary active ingredient that works at the molecular level to rebuild disulfide bonds broken during bleaching, coloring and heat styling processes.

Founded in 2014 and headquartered in Irvine, California, Olaplex initially gained traction among high-end salons before expanding into broader retail channels.

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