Olaplex (NASDAQ:OLPX) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• Trading and analyst outlook: Shares traded about 3.01M mid-day (down 25% from the prior session) and last traded near $2.04, while analysts show a consensus “Hold” rating with a $1.92 average target (1 Buy, 5 Hold, 1 Sell).
• Recent results and valuation: Q4 EPS of $0.01 matched estimates and revenue of $105.12M beat expectations (+4.4% YoY), but the company posts a negative net margin and a negative P/E (-203.5), signaling limited profitability despite top-line growth.
• Insider and institutional activity: Insiders sold 215,442 shares last quarter while company insiders own 4.30%, and institutional investors hold about 87.37% of the stock with several funds both increasing and initiating positions.

Shares of Olaplex Holdings, Inc. (NASDAQ:OLPX - Get Free Report) saw unusually-strong trading volume on Thursday . Approximately 3,011,124 shares changed hands during mid-day trading, a decline of 25% from the previous session's volume of 4,021,937 shares.The stock last traded at $2.0350 and had previously closed at $2.04.

Analysts Set New Price Targets

A number of equities research analysts have commented on OLPX shares. Wall Street Zen raised shares of Olaplex from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. Barclays lifted their target price on shares of Olaplex from $1.75 to $2.00 and gave the stock an "equal weight" rating in a research report on Tuesday. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Olaplex in a research report on Thursday, January 22nd. Telsey Advisory Group boosted their price objective on shares of Olaplex from $2.00 to $2.06 and gave the company a "market perform" rating in a research report on Friday, March 27th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Olaplex in a research report on Wednesday, March 4th. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Olaplex presently has a consensus rating of "Hold" and a consensus target price of $1.92.

Olaplex Price Performance

The company has a market cap of $1.36 billion, a P/E ratio of -203.50 and a beta of 2.01. The company has a debt-to-equity ratio of 0.40, a quick ratio of 4.00 and a current ratio of 4.58. The firm's fifty day moving average is $1.63 and its two-hundred day moving average is $1.41.

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

Insider Buying and Selling

In related news, General Counsel John C. Duffy sold 34,962 shares of the company's stock in a transaction 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 of the company's stock, valued at approximately $1,238,397.30. This represents a 3.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Trisha L. Fox sold 26,426 shares of the company's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1.26, for a total transaction of $33,296.76. Following the completion of the transaction, the insider directly owned 721,169 shares of the company's stock, valued at $908,672.94. This represents a 3.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 215,442 shares of company stock valued at $271,457. Company insiders own 4.30% of the company's stock.

Institutional Trading of Olaplex

Several hedge funds have recently bought and sold shares of OLPX. Empowered Funds LLC purchased a new stake in Olaplex in the 1st quarter worth $576,000. Jane Street Group LLC lifted its stake in Olaplex by 151.8% in the 1st quarter. Jane Street Group LLC now owns 88,321 shares of the company's stock worth $112,000 after purchasing an additional 258,873 shares in the last quarter. Creative Planning lifted its stake in Olaplex by 35.0% in the 2nd quarter. Creative Planning now owns 37,357 shares of the company's stock worth $52,000 after purchasing an additional 9,690 shares in the last quarter. Norges Bank purchased a new stake in Olaplex in the 2nd quarter worth $105,000. Finally, Marshall Wace LLP lifted its stake in Olaplex by 121.4% in the 2nd quarter. Marshall Wace LLP now owns 346,347 shares of the company's stock worth $485,000 after purchasing an additional 189,947 shares in the last quarter. 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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