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. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

The Last 12 Months Of Insider Transactions At Olaplex Holdings

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Amanda Baldwin, sold US$803k worth of shares at a price of US$2.10 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$1.44. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 313.32k shares for US$599k. But insiders sold 472.66k shares worth US$927k. In total, Olaplex Holdings insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insiders At Olaplex Holdings Have Sold Stock Recently

Over the last three months, we've seen a bit of insider selling at Olaplex Holdings. Insiders sold just US$35k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.0% of Olaplex Holdings shares, worth about US$10.0m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Olaplex Holdings Tell Us?

Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. Recent insider selling makes us a little nervous, in light of the broader picture of Olaplex Holdings insider transactions. And we're not picking up on high enough insider ownership to give us any comfort. 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.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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.