CEO & Director Amanda Baldwin Sold A Bunch Of Shares In Olaplex Holdings
We'd be surprised if Olaplex Holdings, Inc. (NASDAQ:OLPX) shareholders haven't noticed that the CEO & Director, Amanda Baldwin, recently sold US$474k worth of stock at US$1.19 per share. The eyebrow raising move amounted to a reduction of 32% in their holding.
Olaplex Holdings Insider Transactions Over The Last Year
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 even when the share price was below the current price of US$1.43, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 32% of Amanda Baldwin's holding.
In total, Olaplex Holdings insiders sold more than they bought over the last year. 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!
See our latest analysis for Olaplex Holdings
I will like Olaplex Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Olaplex Holdings insiders own about US$9.8m worth of shares (which is 1.1% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Olaplex Holdings Insiders?
An insider hasn't bought Olaplex Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Olaplex Holdings. Every company has risks, and we've spotted 1 warning sign for Olaplex Holdings you should know about.
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.