(C) Neuberger Berman
The stock price of APR, a leading K-beauty tech company, has recently lost its upward momentum, leaving individual investors in a state of confusion. Despite a meteoric rise of up to 459% earlier this year, the stock is now facing downward pressure as internal executives and global investment banks (IBs) begin to offload their shares. This trend contrasts sharply with local brokerages, which continue to raise their target prices based on optimistic earnings forecasts.
According to the Korea Exchange on the 26th, APR closed at 229,500 won, down 1.5% from the previous session. The stock has retreated nearly 10% this month alone. While foreign and institutional investors net purchased 93.3 billion won and 3.1 billion won worth of shares respectively over the past month, retail investors sold off a net 96.4 billion won, reflecting growing anxiety.
The primary source of concern for "ants" (retail investors) is the recent divestment by major players. Morgan Stanley, a global IB that had been aggressively collecting K-beauty stocks, recently sold 591,735 shares of APR, reducing its stake from 5.31% to 3.72%. Market analysts interpret this as a strategic profit-taking move that signals a potential shift in the firm’s long-term outlook on the stock.
Adding to the unease, key insiders who possess intimate knowledge of the company have also joined the selling relay. Executive Director Lee Min-kyung sold 1.21 billion won worth of shares, while Director Lim Yoon-ji offloaded approximately 190 million won in two separate transactions. On online investment forums, frustrated investors lamented their decisions, with comments like, "I believed in the performance but now I regret it," and "I should have bought Samsung Electronics or SK Hynix instead."
However, the domestic securities industry remains bullish, focusing on the upcoming fourth-quarter earnings season. LS Securities recently raised its target price for APR from 320,000 won to 340,000 won. Analyst Cho Eun-ae noted, "U.S. online sales reached record monthly highs following the Amazon Prime Big Deal Days in October. As viral marketing transitions into offline success, the company’s profitability remains robust."
KB Securities also echoed this optimism, citing strong sales data from Japan’s Qoo10 Megawari and TikTok Shop. According to FnGuide, APR’s projected Q4 revenue and operating profit are 460.5 billion won and 109.8 billion won, representing staggering year-on-year increases of 88.56% and 176.62%, respectively.
The market is now watching closely to see whether the record-breaking fundamentals can outweigh the negative sentiment triggered by insider selling and institutional profit-taking.
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