Olaplex Holdings (NASDAQ:OLPX) shares fell 7.59% amid analyst rating shifts and institutional position changes.

Olaplex Holdings (NASDAQ:OLPX) shares fell 7.5862% in pre-market trading on January 2, 2026, signaling renewed investor concerns amid a volatile trading environment. The decline followed a series of analyst rating adjustments and institutional position shifts, highlighting divergent market sentiment toward the haircare company.

Recent analyst activity has been mixed, with Northland Capmk upgrading the stock to "strong-buy" in late November, while Barclays cut its price target to $1.25 and Wall Street Zen downgraded to "sell." Zacks Research revised its stance to "hold" after previously labeling the stock a "strong sell." These conflicting assessments reflect uncertainty about Olaplex’s growth trajectory, particularly after the company reported a 3.8% year-over-year revenue decline in its latest earnings report.

Institutional investors have also shown divided strategies. Portolan Capital Management and Balyasny Asset Management significantly increased stakes, with the latter boosting holdings by 1,314.1% in Q2 2025. Meanwhile, UBS Group AG and Bridgeway Capital Management added smaller positions. Despite these moves, 87.37% institutional ownership underscores the stock’s susceptibility to large-scale trading decisions.

Olaplex’s core business faces ongoing challenges, including a negative net margin of 1.18% and a beta of 2.25, indicating heightened volatility compared to the broader market. While the company pioneered bond-building haircare technology, its ability to sustain innovation and market share in a competitive sector remains under scrutiny as it navigates evolving consumer demand and operational pressures.