Soitec share falls below €123, among the biggest decliners on the SBF 120

A new threshold breached after a week of marked decline

The stock loses 7.7% to €117.40 in trading, ranking among the biggest decliners on the SBF 120, with the CAC 40 retreating 1.45% at the same time. The price has breached the lowest level of the last thirty trading sessions, at €123, a level that now becomes a resistance point. This new threshold crossed extends an already heavy movement: the stock abandons more than 16% over the week, after having slipped below its MA50 at the start of the week.

The price is now more than 19% below its MA20, at €146.25, and the RSI at 33 is approaching the oversold zone. The 24% decline over one month contrasts with the longer trajectory: the stock retains 23% gain over three months and nearly 179% over one year. The MA200, at €100.67, remains more than 16% below the price.

High valuation and a €358 million share buyback program in the background

On the basis of expected earnings per share, according to the consensus of surveyed analysts, the stock trades at approximately 148 times the current fiscal year earnings and 32.6 times the following fiscal year's earnings. This valuation occurs in a context of rising bond yields: the 10-year OAT is at 4.99% according to the Banque de France survey of October 21, with a spread of 1.58 points over the German Bund. The group, based in Bernin, also announced on July 29 a share buyback program of €358 million.

On the analyst opinions side, the consensus and price targets are to be monitored. In trading data, the next benchmark to watch is the €123 zone, former support now turned resistance.