Olaplex (NASDAQ:OLPX) Trading Down 9.4% After Earnings Miss

Key Points

• Olaplex Holdings, Inc. shares fell 9.4% after reporting earnings that missed expectations, with a quarterly EPS of ($0.01) against analysts' estimates of $0.01.
• The company generated $106.28 million in revenue, surpassing the expected $100.30 million, indicating a 2.3% year-over-year revenue growth.
• Despite the earnings miss, several Wall Street analysts have a mixed outlook, with price targets ranging from $1.40 to $2.00, signaling potential for future growth.

Olaplex Holdings, Inc. (NASDAQ:OLPX - Get Free Report)'s share price fell 9.4% during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $1.29 and last traded at $1.30. 681,112 shares changed hands during mid-day trading, a decline of 50% from the average session volume of 1,373,015 shares. The stock had previously closed at $1.43.

The company reported ($0.01) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.01 by ($0.02). Olaplex had a positive return on equity of 3.32% and a negative net margin of 0.30%. The firm had revenue of $106.28 million during the quarter, compared to analysts' expectations of $100.30 million. During the same quarter in the prior year, the firm earned $0.03 EPS. The firm's revenue was up 2.3% compared to the same quarter last year.

Analysts Set New Price Targets

Several brokerages have recently weighed in on OLPX. Barclays boosted their price objective on shares of Olaplex from $1.40 to $1.50 and gave the stock an "equal weight" rating in a research report on Tuesday, July 15th. Telsey Advisory Group restated a "market perform" rating and set a $2.00 price objective on shares of Olaplex in a research report on Thursday, August 7th. Wall Street Zen upgraded shares of Olaplex from a "sell" rating to a "hold" rating in a research report on Saturday, July 12th. Finally, Canaccord Genuity Group reduced their price objective on shares of Olaplex from $2.00 to $1.50 and set a "hold" rating for the company in a research report on Friday. Five equities research analysts have rated the stock with a hold rating, According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $1.75.

Institutional Trading of Olaplex

Several institutional investors and hedge funds have recently bought and sold shares of OLPX. JPMorgan Chase & Co. raised its position in Olaplex by 152.4% in the 4th quarter. JPMorgan Chase & Co. now owns 156,563 shares of the company's stock valued at $271,000 after purchasing an additional 94,531 shares during the last quarter. Alliancebernstein L.P. increased its stake in Olaplex by 17.4% in the 4th quarter. Alliancebernstein L.P. now owns 536,742 shares of the company's stock valued at $929,000 after buying an additional 79,461 shares during the period. Wells Fargo & Company MN increased its stake in Olaplex by 27.6% in the 4th quarter. Wells Fargo & Company MN now owns 81,972 shares of the company's stock valued at $142,000 after buying an additional 17,726 shares during the period. Renaissance Technologies LLC increased its stake in Olaplex by 9.6% in the 4th quarter. Renaissance Technologies LLC now owns 3,076,969 shares of the company's stock valued at $5,323,000 after buying an additional 268,969 shares during the period. Finally, Belpointe Asset Management LLC increased its stake in Olaplex by 23.6% in the 4th quarter. Belpointe Asset Management LLC now owns 61,461 shares of the company's stock valued at $106,000 after buying an additional 11,724 shares during the period. Hedge funds and other institutional investors own 87.37% of the company's stock.

Olaplex Stock Up 2.3%

The company has a current ratio of 10.74, a quick ratio of 9.53 and a debt-to-equity ratio of 0.73. The firm's 50 day simple moving average is $1.44 and its 200-day simple moving average is $1.38. The company has a market capitalization of $907.23 million, a price-to-earnings ratio of 32.25 and a beta of 2.33.

About Olaplex

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.