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

Olaplex (NASDAQ:OLPX) was downgraded by equities researchers at Northland Securities from a “strong-buy” rating to a “hold” rating in a note issued to investors on Thursday,Zacks.com reports.

Other equities analysts have also issued reports about the company. Jefferies Financial Group reissued a “buy” rating on shares of Olaplex in a report on Wednesday, March 4th. Morgan Stanley set a $1.40 price target on Olaplex in a research report on Tuesday, March 10th. Barclays set a $1.75 price target on Olaplex in a research note on Friday, January 16th. Evercore set a $2.50 price objective on Olaplex in a research note on Friday, March 6th. Finally, Telsey Advisory Group reaffirmed a “market perform” rating and set a $2.00 price objective on shares of Olaplex in a report on Monday, March 2nd. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $1.88.

Olaplex Price Performance

Shares of NASDAQ:OLPX opened at $2.01 on Thursday. The company has a market capitalization of $1.35 billion, a P/E ratio of -201.00 and a beta of 2.24. The company’s 50-day moving average is $1.50 and its 200 day moving average is $1.35. The company has a debt-to-equity ratio of 0.40, a quick ratio of 4.00 and a current ratio of 4.58. Olaplex has a fifty-two week low of $0.99 and a fifty-two week high of $2.01.

Olaplex (NASDAQ:OLPX) last announced its quarterly earnings data on Thursday, March 5th. The company reported $0.01 EPS for the quarter, hitting the consensus estimate of $0.01. Olaplex had a negative net margin of 2.19% and a positive return on equity of 1.07%. The business had revenue of $105.12 million for the quarter, compared to analyst estimates of $104.21 million. During the same quarter in the previous year, the firm posted $0.01 earnings per share. The company’s revenue for the quarter was up 4.4% on a year-over-year basis. On average, equities research analysts forecast that Olaplex will post 0.1 earnings per share for the current year.

Insider Activity at Olaplex

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

Hedge Funds Weigh In On Olaplex

Several hedge funds have recently bought and sold shares of the company. Empowered Funds LLC purchased a new stake in Olaplex in the 1st quarter worth approximately $576,000. Jane Street Group LLC grew its position in shares of Olaplex by 151.8% during the 1st quarter. Jane Street Group LLC now owns 88,321 shares of the company’s stock valued at $112,000 after purchasing an additional 258,873 shares in the last quarter. Creative Planning grew its position in shares of Olaplex by 35.0% during the 2nd quarter. Creative Planning now owns 37,357 shares of the company’s stock valued at $52,000 after purchasing an additional 9,690 shares in the last quarter. Dynamic Technology Lab Private Ltd increased its holdings in shares of Olaplex by 139.9% in the second quarter. Dynamic Technology Lab Private Ltd now owns 93,933 shares of the company’s stock worth $132,000 after purchasing an additional 54,781 shares during the period. Finally, Norges Bank purchased a new stake in shares of Olaplex in the second quarter worth $105,000. Hedge funds and other institutional investors own 87.37% of the company’s stock.

Key Olaplex News

Here are the key news stories impacting Olaplex this week:

• Positive Sentiment: Henkel agreed to acquire Olaplex for $2.06 per share in cash, valuing the company at ~ $1.4 billion and representing roughly a 55% premium to the prior close — this deal is the main reason the stock is higher as it establishes a takeover price for shareholders. OLAPLEX to be Acquired by Henkel (GlobeNewswire)
• Positive Sentiment: Market coverage highlights big premarket gains (reports of ~49% premarket surge) and broad media pickup (Bloomberg, WSJ, CNBC), which reinforces buyer interest and liquidity into the takeover price. Olaplex to be acquired by Henkel (CNBC)
• Neutral Sentiment: Heavy options activity: an unusual surge in call buying was reported (over 11k calls traded vs. a ~563 average), indicating speculative positioning around the takeover news or bets on a higher offer — this can amplify intraday moves but also adds volatility. (market options flow note)
• Neutral Sentiment: Analyst and press pieces explain the mechanics: the $2.06 cash offer is ~45% above the 30-day VWAP and is being pitched by Henkel as a way to accelerate Olaplex’s global reach and R&D investment — transaction completion still subject to customary conditions. Olaplex to Be Acquired by Henkel (WSJ)
• Negative Sentiment: A shareholder law firm (Ademi) has opened an investigation into whether Olaplex’s deal represents a fair price for public shareholders, signaling potential litigation or pushback that could delay closing or pressure terms. Shareholder Alert: The Ademi Firm investigates Olaplex (PRNewswire)
• Negative Sentiment: Critical takes note the deal may be “negative” for some stakeholders (analysts argue the price may undershoot long-term intrinsic value or reflects limited buyer competition), which could temper upside unless a higher bidder emerges. Henkel Buys Olaplex – Implications Are Negative (Seeking Alpha)

About Olaplex

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.