Soitec Shares Plunge 7.6%: Down 24% in One Week After a 107% Rally
Soitec's stock experienced a significant decline on Tuesday, March 24, dropping 7.6% to 47.90 euros by midday, after closing at 51.84 euros the previous day. This drop is part of a challenging week for the semiconductor substrate specialist, with the stock down over 24% in the past seven days. This movement comes as the CAC 40 slightly fell by 0.46% to 7,690.99 points during the session.
Today’s Session Marks a Sharp Halt for Soitec
Today’s trading session marks a severe halt for Soitec, which had previously seen a spectacular increase of 106.8% over the last three months. The stock is now below its 20-day moving average of 48.70 euros, after exceeding it in recent weeks. This downward crossing is a short-term reversal signal, especially as the Relative Strength Index (RSI), which measures overbought or oversold phases, is at 58—a level indicating a decline in upward momentum without suggesting an overselling excess. The weekly correction of 24% suggests a pronounced profit-taking phase following the recent rally. The main resistance threshold is at 63.16 euros, significantly above the current price, while the identifiable technical support lies at 34.80 euros. Over one year, the stock still shows a decline of 15.15%, indicating that the recent recovery has not fully offset previous losses.
JP Morgan Substantially Raises Price Target on Soitec on the Eve of the Correction Session
On the eve of this correction session, JP Morgan significantly revised its price target on Soitec upwards from 33 to 50 euros, while maintaining a 'neutral' recommendation. At the current price of 47.90 euros, this target represents a limited upside potential of about 4.4%, which explains the cautious stance of the American bank. The upcoming annual results, expected on May 27, 2026, will be a crucial moment to assess the financial trajectory of the company. In the sector, European technology stocks are showing a slightly negative tone in the session: ASML Holding is down 0.54% and Prosus is down 0.32%, declines that are modest compared to Soitec’s sharp drop this Tuesday.
