Olaplex (NASDAQ:OLPX) Issues Quarterly Earnings Results

Key Points

• Olaplex beat quarterly expectations, reporting EPS of $0.02 versus the $0.01 consensus estimate and revenue of $99.37 million versus the expected $94.11 million. Revenue rose 2.5% year over year, though net margin remained negative at 2.19%.
• The stock was little changed after the report, slipping 0.2% to $2.04 in midday trading. That price sits near its 12-month high of $2.04, with the company valued at about $1.37 billion.
• Analyst sentiment remains cautious, with one Buy, four Hold, and two Sell ratings, and a consensus target price of $1.92. Zacks Research recently downgraded the stock to strong sell, even as a few firms maintained or raised price targets.

Olaplex (NASDAQ:OLPX - Get Free Report) issued its quarterly earnings results on Monday. The company reported $0.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.01 by $0.01, Briefing.com reports. The firm had revenue of $99.37 million during the quarter, compared to analyst estimates of $94.11 million. Olaplex had a positive return on equity of 1.07% and a negative net margin of 2.19%.The business's revenue for the quarter was up 2.5% on a year-over-year basis.

Olaplex Trading Down 0.2%

NASDAQ:OLPX traded down $0.01 during mid-day trading on Monday, reaching $2.04. 3,000,219 shares of the company's stock traded hands, compared to its average volume of 3,808,067. Olaplex has a 12-month low of $0.99 and a 12-month high of $2.04. The firm has a market capitalization of $1.37 billion, a price-to-earnings ratio of -203.50 and a beta of 1.87. The company has a debt-to-equity ratio of 0.40, a current ratio of 4.58 and a quick ratio of 4.00. The company has a 50 day moving average price of $1.76 and a 200-day moving average price of $1.49.

Analysts Set New Price Targets

Several research firms have recently commented on OLPX. Zacks Research downgraded Olaplex from a "hold" rating to a "strong sell" rating in a report on Tuesday, May 5th. Barclays lifted their price objective on Olaplex from $1.75 to $2.00 and gave the stock an "equal weight" rating in a report on Tuesday, April 14th. Morgan Stanley set a $1.40 price objective on Olaplex in a report on Tuesday, March 10th. Evercore set a $2.50 price objective on Olaplex in a report on Friday, March 6th. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of Olaplex in a report on Wednesday, March 4th. One analyst has rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Reduce" and a consensus target price of $1.92.

Insider Activity at Olaplex

In related news, CFO Catherine Dunleavy sold 93,809 shares of the business's stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $1.26, for a total transaction of $118,199.34. Following the transaction, the chief financial officer owned 3,026,885 shares in the company, valued at $3,813,875.10. The trade was a 3.01% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, General Counsel John C. Duffy sold 34,962 shares of the business's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $1.26, for a total value of $44,052.12. Following the transaction, the general counsel owned 982,855 shares in the company, valued at approximately $1,238,397.30. This represents a 3.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 215,442 shares of company stock worth $271,457 in the last 90 days. Company insiders own 4.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Headlands Technologies LLC purchased a new position in shares of Olaplex during the 4th quarter worth approximately $25,000. Abel Hall LLC purchased a new position in shares of Olaplex during the 4th quarter worth approximately $27,000. Schonfeld Strategic Advisors LLC purchased a new position in shares of Olaplex during the 3rd quarter worth approximately $30,000. BNP Paribas Financial Markets grew its holdings in shares of Olaplex by 95.4% during the 3rd quarter. BNP Paribas Financial Markets now owns 29,707 shares of the company's stock worth $39,000 after acquiring an additional 14,507 shares during the period. Finally, Jump Financial LLC grew its holdings in shares of Olaplex by 193.7% during the 4th quarter. Jump Financial LLC now owns 29,800 shares of the company's stock worth $40,000 after acquiring an additional 19,653 shares during the period. Hedge funds and other institutional investors own 87.37% of the company's stock.

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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