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.
Olaplex Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by John Paul Bilbrey was the biggest purchase of Olaplex Holdings shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.38. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
John Paul Bilbrey purchased 191.59k shares over the year. The average price per share was US$2.06. 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!
Olaplex Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Olaplex Holdings insiders own about US$13m worth of shares. That equates to 0.8% of the company. 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 Does This Data Suggest About Olaplex Holdings Insiders?
It is good 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 while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. 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.