376K Reasons To Be Bullish On Olaplex Hldgs Stock

JOHN BILBREY, Director at Olaplex Hldgs OLPX, disclosed an insider purchase on August 21, based on a new SEC filing.

What Happened: In a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, it was disclosed that BILBREY bought 183,493 shares of Olaplex Hldgs, amounting to a total of $376,160.

As of Thursday morning, Olaplex Hldgs shares are up by 4.11%, currently priced at $2.28.

About Olaplex Hldgs

Olaplex Holdings Inc is a science-enabled, technology-driven beauty company. It offers science-backed solutions that improve hair health. It identifies consumers' most relevant haircare concerns in collaboration with the community of professional hairstylists and consumers and strives to address them through its proprietary technology and innovation capabilities. It offers products through a global omnichannel platform serving the professional, specialty retail, and DTC channels. The company derives its revenue through the sale of its hair care products. The company generates major revenue from Professional sales channel followed by Specialty Retail and then DTC. Geographically the company generates the majority of its revenue from International market.

Olaplex Hldgs's Economic Impact: An Analysis

Revenue Challenges: Olaplex Hldgs's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -4.85%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Key Profitability Indicators:

• Gross Margin: The company sets a benchmark with a high gross margin of 69.69%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Olaplex Hldgs's EPS is below the industry average. The company faced challenges with a current EPS of 0.01. This suggests a potential decline in earnings.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.76, caution is advised due to increased financial risk.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: Olaplex Hldgs's P/E ratio of 31.29 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.34, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 9.24 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Olaplex Hldgs's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.