Have Olaplex Holdings Insiders Been Selling Stock?

Some Olaplex Holdings, Inc. (NASDAQ:OLPX) shareholders may be a little concerned to see that the CEO & Director, Amanda Baldwin, recently sold a substantial US$803k worth of stock at a price of US$2.10 per share. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Olaplex Holdings

The Last 12 Months Of Insider Transactions At Olaplex Holdings

In fact, the recent sale by Amanda Baldwin was the biggest sale of Olaplex Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$2.10. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid US$585k for 303.32k shares. On the other hand they divested 469.80k shares, for US$942k. Over the last year we saw more insider selling of Olaplex Holdings shares, than buying. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Olaplex Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Olaplex Holdings insiders own about US$19m worth of shares. That equates to 1.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Olaplex Holdings Tell Us?

Unfortunately, there has been more insider selling of Olaplex Holdings stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Olaplex Holdings.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.