Soitec Shares Plunge 17%, Marking the Steepest Decline in the SBF 120

Significant Drop and High Trading Volume

The stock closed at 36.79 euros, down 17.01% from the previous day when it was at 44.33 euros. This sharp correction was accompanied by unusually high trading volumes, representing 1.86% of the capital, nearly twelve times the usual levels seen on previous days. This high activity indicates significant selling pressure, in an otherwise stable Parisian market as the CAC 40 ended slightly down by 0.18%. Over a week, the cumulative decline now stands at 17.53%, with the stock down 22.51% over three months. Since the beginning of the year, the performance has been largely negative, with a loss of 55.11%, making Soitec one of the biggest losers in the SBF 120 in 2025. This drop comes after a significant rebound since mid-September, with the price having regained nearly 44% from its low point. This correction thus erases some of the recent gains and puts the stock under pressure, in a context of high volatility measured at 16.65% over a month. The negative beta of -0.13 further underlines the atypical nature of the stock, which often moves out of sync with the movements of the Parisian market, thus limiting its sensitivity to variations in the reference index.

Downgraded Forecasts and Ongoing Challenges

The session was marked by the release of a report from Oddo BHF research firm, which lowered its gross operating profit forecasts by an average of 13% for the next three fiscal years. The analyst now anticipates a net loss for the fiscal year ending in March 2026, while maintaining a price target of 52 euros, representing a potential upside of about 41% from the closing price. This revision is based on increased caution regarding the 18-month outlook, particularly due to still high inventories in the radio frequency division, which accounts for nearly half of the expected revenue, and limited visibility in the automotive sector. The broker also highlighted the lack of expected improvement in margins, with low activity levels weighing on operational leverage, while the priority remains cash generation. This commentary comes in a broader context of difficulties for the group, which announced in early October the departure of its CEO for personal reasons, with a transition planned until the end of March 2026. The publication of the semi-annual results, expected on November 19, will be a key moment to assess the company's ability to navigate a still challenging market environment, marked by weak demand in several of its business segments.

Technical Perspective and Support Threshold

Technically, the stock is now close to its support threshold identified at 31.07 euros, which could act as a stabilization zone if the decline continues. The price is slightly below its fifty-day moving average, positioned at 37.28 euros, reflecting short-term fragility, while the gap with the two-hundred-day moving average, at 51.05 euros, illustrates the magnitude of the correction suffered over the year. This graphical configuration indicates a persistent underlying bearish trend despite recent rebound attempts. The relative strength index, measured at 68, displays a relatively high level given the day's drop, which is explained by the rebound in the preceding weeks and suggests that the stock had regained some momentum before this correction. The Chaikin money flow, positive at 0.26, indicates that buying flows remain present despite the decline, which could translate into opportunistic positioning at these price levels. The Bollinger Bands, ranging from 31.82 euros to 47.88 euros, broadly frame the current fluctuations and testify to marked volatility, with the stock situated in the lower part of this range after Tuesday's drop. The resistance level, set at 45.50 euros, now poses a significant obstacle in case of a recovery attempt.