What Happened?
Shares of hair care company Olaplex (NASDAQ: OLPX) jumped 49.6% in the afternoon session after the company agreed to be acquired by German consumer-products company Henkel for about $1.4 billion.
The deal valued Olaplex at $2.06 per share in cash, which represented a significant 55% premium over the stock's closing price of $1.33 on the previous day. The transaction was approved by Olaplex's Board of Directors. Following the acquisition, Olaplex was set to be delisted from the Nasdaq stock exchange. The agreement stipulated that the deal was expected to be finalized in the second half of 2026, pending regulatory approvals and other standard closing conditions.
The shares closed the day at $2.01, up 50.8% from previous close.
Is now the time to buy Olaplex? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Olaplex’s shares are extremely volatile and have had 50 moves greater than 5% over the last year. But moves this big are rare even for Olaplex and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 21 days ago when the stock dropped 19.5% on the news that the company reported mixed fourth-quarter results and provided a disappointing full-year revenue forecast.
While the hair care company's fourth-quarter sales rose 4.3% year-over-year to $105.1 million and adjusted earnings per share met expectations, investors focused on the weaker outlook. The company's full-year revenue guidance, at a midpoint of $424.5 million, came in below analysts' estimates. Adding to concerns, the company's profitability declined, with its operating margin falling to negative 4.3% for the quarter, a significant drop from the positive 3% margin in the same period last year. This combination of a disappointing forecast and shrinking profitability appeared to trigger a negative response from investors.
Olaplex is up 48.5% since the beginning of the year, and at $2.01 per share, has set a new 52-week high. Investors who bought $1,000 worth of Olaplex’s shares at the IPO in September 2021 would now be looking at an investment worth $81.84.
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
