Olaplex (NASDAQ:OLPX) Cut to “Hold” at Northland Securities

Northland Securities lowered shares of Olaplex (NASDAQ:OLPX) from a strong-buy rating to a hold rating in a research note published on Thursday,Zacks.com reports.

Several other equities analysts have also recently weighed in on the stock. Zacks Research raised shares of Olaplex from a “strong sell” rating to a “hold” rating in a research note on Thursday, February 19th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Olaplex in a research report on Thursday, January 22nd. Telsey Advisory Group reissued a “market perform” rating and issued a $2.00 price objective on shares of Olaplex in a research report on Monday, March 2nd. Wall Street Zen raised shares of Olaplex from a “sell” rating to a “hold” rating in a research report on Saturday, March 7th. Finally, Morgan Stanley set a $1.40 price objective on shares of Olaplex in a research note on Tuesday, March 10th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $1.89.

Olaplex Price Performance

NASDAQ:OLPX opened at $2.02 on Thursday. Olaplex has a 52-week low of $0.99 and a 52-week high of $2.02. The company has a market cap of $1.35 billion, a P/E ratio of -202.00 and a beta of 2.24. 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 stock’s 50-day simple moving average is $1.51 and its 200 day simple moving average is $1.36.

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

Insider Buying and Selling

In other Olaplex news, CFO Catherine Dunleavy sold 93,809 shares of the firm’s stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $1.26, for a total transaction of $118,199.34. Following the completion of the sale, the chief financial officer owned 3,026,885 shares of the company’s stock, valued at $3,813,875.10. This trade represents a 3.01% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, General Counsel John C. Duffy sold 34,962 shares of Olaplex stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $1.26, for a total transaction of $44,052.12. Following the transaction, the general counsel directly owned 982,855 shares of the company’s stock, valued at approximately $1,238,397.30. This trade represents a 3.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 215,442 shares of company stock valued at $271,457. 4.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Olaplex

Institutional investors and hedge funds have recently modified their holdings of the stock. Headlands Technologies LLC bought a new position in shares of Olaplex in the fourth quarter valued at about $25,000. Chilton Capital Management LLC bought a new stake in shares of Olaplex during the 3rd quarter worth about $26,000. Abel Hall LLC acquired a new position in Olaplex in the 4th quarter valued at about $27,000. Schonfeld Strategic Advisors LLC acquired a new position in Olaplex in the 3rd quarter valued at about $30,000. Finally, Wealth Enhancement Advisory Services LLC bought a new position in Olaplex in the 3rd quarter valued at about $32,000. 87.37% of the stock is currently owned by institutional investors and hedge funds.

Olaplex News Summary

Here are the key news stories impacting Olaplex this week:

• Positive Sentiment: Henkel agreed to acquire Olaplex for $2.06 per share (≈$1.4 billion), a ~55% premium to the pre-announcement close; the deal is being pitched as enabling greater investment and distribution for the brand. OLAPLEX to be Acquired by Henkel for $1.4 Billion
• Positive Sentiment: Heavy bullish activity and strong market reaction: premarket headlines and commentary noted a large surge after the announcement, and unusual options activity (large buy of calls) signaled speculative and takeover-arbitrage positioning. Wall Street Breakfast Podcast: Henkel Adds Shine With Olaplex
• Neutral Sentiment: Small analyst adjustments: Telsey Advisory Group raised its price target marginally to $2.06 and kept a “market perform” rating — a modest validation of the deal price but not a strong new bullish signal. Benzinga
• Negative Sentiment: Multiple shareholder-law firms have launched investigations into whether Olaplex shareholders received a fair price or whether there were breaches of fiduciary duty in connection with the sale — this raises litigation risk and could complicate closing/timing. M&A Class Action Firm Announces Investigation Ademi Firm Investigates Fair Price
• Negative Sentiment: Critical analysis and a downgrade: commentary pieces flagged negative implications of the sale for certain stakeholders, and Northland downgraded the stock from “strong-buy” to “hold” — both could reduce enthusiasm among some investors. Henkel Buys Olaplex – Implications Are Negative Zacks (Northland downgrade)

Olaplex Company Profile

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.