What Happened: Shares of hair care company Olaplex (NASDAQ:OLPX) fell 7.9% in the morning session after the company announced that CFO (Chief Financial Officer) Eric Tiziani would step down to pursue other opportunities, effective May 3, 2024. According to the release, the company will continue the search for a new CFO. Paul Kosturos, a Managing Director at Alvarez & Marsal, is expected to serve as internal Interim CFO. In addition, Olaplex reaffirmed revenue guidance for the first quarter of 2024.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Olaplex? Find out by reading the original article on StockStory.
What is the market telling us: Olaplex's shares are somewhat volatile and over the last year have had 50 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about a month ago, when the stock dropped 13% on the news that the company reported fourth-quarter results and provided full-year revenue and EBITDA guidance, which missed analysts' expectations.
On the other hand, despite dropping year on year, its revenue outperformed Wall Street's estimates as its Direct-to-Consumer segment posted strong results. Overall, the results could have been better.
Olaplex is down 33.4% since the beginning of the year, and at $1.67 per share it is trading 60.6% below its 52-week high of $4.23 from July 2023. Investors who bought $1,000 worth of Olaplex's shares at the IPO in September 2021 would now be looking at an investment worth $67.96.
