Insiders who acquired US$150.2k worth of Olaplex Holdings, Inc.'s (NASDAQ:OLPX) stock at an average price of US$2.58 in the past 12 months may be dismayed by the recent 15% price decline. 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, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Olaplex Holdings
The Executive Chair of the Board John Paul Bilbrey made the biggest insider purchase in the last 12 months. That single transaction was for US$132k worth of shares at a price of US$2.65 each. That means that even when the share price was higher than US$1.49 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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 purchased 58.10k shares over the year. The average price per share was 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Olaplex Holdings Boast High Insider Ownership?
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. Based on our data, Olaplex Holdings insiders have about 0.4% of the stock, worth approximately US$3.5m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Olaplex Holdings Tell Us?
The fact that there have been no Olaplex Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Olaplex Holdings insiders bought more shares in the company. 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.