Yahoo Finance Olaplex Holdings' US$178m Market Cap Fall Books Insider Losses
The recent 15% drop in Olaplex Holdings, Inc.'s (NASDAQ:OLPX) stock could come as a blow to insiders who purchased US$150.2k worth of stock at an average buy price of US$2.58 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$86.6k, which is not what they expected.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Olaplex Holdings
Olaplex Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Chair of the Board John Paul Bilbrey bought US$132k worth of shares at a price of US$2.65 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.49). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. John Paul Bilbrey was the only individual insider to buy during the last year.
John Paul Bilbrey bought a total of 58.10k shares over the year at an average price of US$2.58. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$3.5m worth of Olaplex Holdings stock, about 0.4% of the company. We consider this fairly low insider ownership.
What Might The Insider Transactions At Olaplex Holdings Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Olaplex Holdings stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Olaplex Holdings. Case in point: We've spotted 1 warning sign for Olaplex Holdings you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
