Olaplex (NASDAQ:OLPX) Shares Gap Up on Analyst Upgrade

Key Points

• Olaplex's stock price increased from $1.40 to $1.50 following an upgrade from Canaccord Genuity Group, which changed its rating from hold to buy, with a new price target of $2.00.
• During the fourth quarter, several institutional investors, including JPMorgan Chase & Co. and Marshall Wace LLP, significantly increased their stakes in Olaplex, with institutional holdings now at 87.37%.
• Olaplex reported quarterly earnings with a negative net margin of 0.30% and revenue of $106.28 million, surpassing analyst expectations of $100.30 million, but it missed earnings per share estimates.

Olaplex Holdings, Inc. (NASDAQ:OLPX - Get Free Report) gapped up before the market opened on Monday after Canaccord Genuity Group upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $1.40, but opened at $1.50. Canaccord Genuity Group now has a $2.00 price target on the stock, up from their previous price target of $1.50. Olaplex shares last traded at $1.64, with a volume of 1,576,118 shares.

Several other brokerages also recently commented on OLPX. Wall Street Zen raised Olaplex from a "sell" rating to a "hold" rating in a report on Saturday, July 12th. Barclays raised their price objective on Olaplex from $1.40 to $1.50 and gave the stock an "equal weight" rating in a research report on Tuesday, July 15th. Finally, Telsey Advisory Group reiterated a "market perform" rating and issued a $2.00 target price on shares of Olaplex in a report on Thursday, August 7th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Olaplex currently has an average rating of "Hold" and an average price target of $1.88.

Institutional Investors Weigh In On Olaplex

A number of large investors have recently bought and sold shares of OLPX. Teacher Retirement System of Texas acquired a new position in shares of Olaplex during the first quarter valued at about $25,000. R Squared Ltd bought a new stake in Olaplex in the 2nd quarter valued at about $25,000. Hsbc Holdings PLC acquired a new position in Olaplex during the 4th quarter worth approximately $34,000. BNP Paribas Financial Markets acquired a new position in Olaplex during the 4th quarter worth approximately $35,000. Finally, Creative Planning boosted its holdings in Olaplex by 35.0% in the second quarter. Creative Planning now owns 37,357 shares of the company's stock worth $52,000 after acquiring an additional 9,690 shares in the last quarter. 87.37% of the stock is currently owned by institutional investors and hedge funds.

Olaplex Stock Down 1.4%

The stock has a market cap of $953.93 million, a price-to-earnings ratio of 36.50 and a beta of 2.33. The stock has a 50 day simple moving average of $1.45 and a 200 day simple moving average of $1.37. The company has a quick ratio of 3.20, a current ratio of 3.86 and a debt-to-equity ratio of 0.40.

Olaplex (NASDAQ:OLPX - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.01 by ($0.02). The firm had revenue of $106.28 million during the quarter, compared to the consensus estimate of $100.30 million. Olaplex had a positive return on equity of 3.32% and a negative net margin of 0.30%.Olaplex's revenue for the quarter was up 2.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.03 earnings per share. Olaplex has set its FY 2025 guidance at EPS. As a group, analysts expect that Olaplex Holdings, Inc. will post 0.1 earnings per share for the current fiscal year.

Olaplex Company Profile

Olaplex Holdings, Inc develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers.