Insiders At Olaplex Holdings Sold US$1.1m In Stock, Alluding To Potential Weakness

The fact that multiple Olaplex Holdings, Inc. (NASDAQ:OLPX) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Olaplex Holdings Insider Transactions Over The Last Year

The CEO & Director, Amanda Baldwin, made the biggest insider sale in the last 12 months. That single transaction was for US$803k worth of shares at a price of US$2.10 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.10. So it is hard to draw any strong conclusion from it.

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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Olaplex Holdings

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Insider Ownership Of Olaplex Holdings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Olaplex Holdings insiders own 1.1% of the company, worth about US$8.3m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Olaplex Holdings Tell Us?

It doesn't really mean much that no insider has traded Olaplex Holdings shares in the last quarter. Our analysis of Olaplex Holdings insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. Of course, the future is what matters most. So if you are interested in Olaplex Holdings, you should check out this free report on analyst forecasts for the company.

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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.