Soitec Share: After 57% Surge Over the Quarter, Stock Falls 3.5%
Soitec is catching its breath this Thursday, after already closing a fragile session the day before. The Isère-based semiconductor substrate manufacturer is among the biggest decliners of the SBF 120, in a Paris market oriented downward and under the watchful eye of bond rates.
A Decline That Does Not Dent the Advance Over Moving Averages
The share loses 3.6% to €154.15, and is among the biggest decliners of the SBF 120 while the index falls 0.81%. The pullback remains modest compared to the recent performance: Soitec still shows a 7.5% gain over one month and more than 57% over three months. The price remains above the MA20 (€148.25, a difference of +3.98%) as well as the MA50 (€130.34, a difference of +18.27%), which limits the scope of today's decline.
The resistance at €167.55 remains out of reach for now, while the nearest support is located much lower, at €108.00. This contrast between the magnitude of the rally since September and today's correction is part of a session where the CAC 40 loses 0.75%, in a context of tension on French debt, with an OAT-Bund spread of 1.34 points.
A Valuation That Remains Elevated After a Year of Rally
The share has more than tripled in twelve months, with a 257.6% gain, and the valuation bears the mark of this. According to the analyst consensus reviewed, the stock is trading at approximately 193.6 times expected earnings for the current fiscal year and 42.5 times those for the following fiscal year. The group raised in early September its forecast for revenue growth in the second quarter to approximately 50%, driven by Photonics-SOI, and launched on September 17 an issuance of convertible bonds worth 500 million euros maturing in 2033.
On the indicator front, the RSI at 63 is below the level of 70 noted the day before, which reflects a beginning decline in bullish momentum. The resistance level at €167.55 remains the benchmark to follow in case of a rebound.
