Olaplex Holdings Executive Chair of the Board Acquires 91% More Stock

Potential Olaplex Holdings, Inc. (NASDAQ:OLPX) shareholders may wish to note that the Executive Chair of the Board, John Paul Bilbrey, recently bought US$376k worth of stock, paying US$2.05 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 91%, potentially signalling some real optimism.

See our latest analysis for Olaplex Holdings

Olaplex Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by John Paul Bilbrey is the biggest insider purchase of Olaplex Holdings shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$2.38), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

John Paul Bilbrey purchased 191.59k shares over the year. The average price per share was US$2.06. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Olaplex Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Olaplex Holdings Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Olaplex Holdings insiders own 0.8% of the company, worth about US$13m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Olaplex Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in Olaplex Holdings shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Olaplex Holdings and understanding these should be part of your investment process.

But note: Olaplex Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.