Olaplex (NASDAQ:OLPX) Reaches New 12-Month High on Better-Than-Expected Earnings

Key Points

• Olaplex shares hit a new 52-week high after the company reported better-than-expected quarterly earnings, with the stock briefly trading as high as $2.04.
• The company earned $0.02 per share versus the $0.01 consensus estimate and posted revenue of $99.37 million, topping expectations of $94.11 million.
• Analysts remain cautious overall: several firms have recently adjusted ratings and price targets, and MarketBeat shows a consensus rating of "Reduce" with an average target price of $1.92.

Olaplex Holdings, Inc. (NASDAQ:OLPX - Get Free Report)'s stock price hit a new 52-week high on Monday following a better than expected earnings announcement. The company traded as high as $2.04 and last traded at $2.0350, with a volume of 534760 shares traded. The stock had previously closed at $2.04.

The company reported $0.02 EPS for the quarter, topping the consensus estimate of $0.01 by $0.01. The company had revenue of $99.37 million for the quarter, compared to analysts' expectations of $94.11 million. Olaplex had a positive return on equity of 1.07% and a negative net margin of 2.19%.The company's revenue was up 2.5% compared to the same quarter last year.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on OLPX shares. Barclays raised their price target on Olaplex from $1.75 to $2.00 and gave the stock an "equal weight" rating in a research report on Tuesday, April 14th. Canaccord Genuity Group lowered Olaplex from a "strong-buy" rating to a "hold" rating in a research report on Thursday, March 26th. Wall Street Zen raised Olaplex from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. Telsey Advisory Group boosted their price target on Olaplex from $2.00 to $2.06 and gave the stock a "market perform" rating in a research report on Friday, March 27th. Finally, Northland Securities downgraded Olaplex from a "strong-buy" rating to a "hold" rating in a research note on Thursday, March 26th. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Olaplex currently has a consensus rating of "Reduce" and an average target price of $1.92.

Insider Activity at Olaplex

In related news, insider Trisha L. Fox sold 25,421 shares of the business's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $1.26, for a total value of $32,030.46. Following the completion of the sale, the insider directly owned 1,080,363 shares in the company, valued at $1,361,257.38. The trade was a 2.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Catherine Dunleavy sold 93,809 shares of Olaplex stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $1.26, for a total value of $118,199.34. Following the completion of the transaction, the chief financial officer directly owned 3,026,885 shares of the company's stock, valued at $3,813,875.10. This represents a 3.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 215,442 shares of company stock worth $271,457 in the last ninety days. 4.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Olaplex

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Archon Capital Management LLC increased its holdings in Olaplex by 40.4% in the 4th quarter. Archon Capital Management LLC now owns 4,466,876 shares of the company's stock worth $5,986,000 after purchasing an additional 1,284,557 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Olaplex by 2.8% in the fourth quarter. Geode Capital Management LLC now owns 3,865,034 shares of the company's stock valued at $5,180,000 after buying an additional 106,048 shares during the period. Portolan Capital Management LLC increased its stake in shares of Olaplex by 132.6% in the third quarter. Portolan Capital Management LLC now owns 3,635,124 shares of the company's stock valued at $4,762,000 after buying an additional 2,072,383 shares during the period. Ninety One UK Ltd increased its stake in shares of Olaplex by 4.1% in the fourth quarter. Ninety One UK Ltd now owns 3,525,027 shares of the company's stock valued at $4,724,000 after buying an additional 139,109 shares during the period. Finally, State Street Corp increased its stake in shares of Olaplex by 3.5% in the fourth quarter. State Street Corp now owns 3,059,988 shares of the company's stock valued at $4,100,000 after buying an additional 103,875 shares during the period. Institutional investors and hedge funds own 87.37% of the company's stock.

Olaplex Trading Down 0.2%

The company has a market cap of $1.37 billion, a price-to-earnings ratio of -203.50 and a beta of 1.87. The firm has a 50 day moving average price of $1.76 and a two-hundred day moving average price of $1.49. The company has a quick ratio of 4.00, a current ratio of 4.58 and a debt-to-equity ratio of 0.40.

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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