Soitec Stock Plummets Over 7% After Hitting a Record High Since 2022
The Isère-based semiconductor substrate specialist is experiencing a harsh session in Paris. After reaching a peak on Friday, the stock has significantly retreated, ending up at the bottom of the broad index. This marked profit-taking follows the publication of its annual accounts.
A Sharp Correction at the Tail End of the SBF 120 Following Friday's Peak
Soitec stock has fallen 7.32% to €164.55, becoming the worst performer in the SBF 120 while the index itself edged up by 0.10%. This movement erases some of the recent gains: over the week, the stock has lost 7.22%, after having reached €200.50 on Friday, a record high since 2022. However, the performance remains spectacular over time, with an increase of 302.3% over three months and 279% over a year.
HSBC raised its price target this Monday from €31 to €173, while maintaining its 'hold' rating. A spectacular revision in absolute terms, but which sets the target just above the current price, compared to the €200 targeted by Morgan Stanley.
The decline comes after the publication of the annual accounts on May 27, which reported a 34% decrease in revenue to €592 million for the fiscal year 2026, despite a cash flow back to +€63 million. During this release, the company had pointed out among its risks the decrease in volumes linked to the correction of stocks at its clients.
The Stock Remains Above Its Moving Averages, Short Interest Significantly Decreases
Despite today's drop, the price remains above the MM20 (€159.97), with a reduced gap of 2.86%. The distance from the long-term averages remains staggering: the MM200 at €53.15 is 209% below the current price, a testament to the rally accumulated since the beginning of the year. The RSI at 61 indicates a still positive momentum, despite today's slowdown.
On the short-selling front, two funds cumulatively hold 2.13% of the capital sold short, according to reviewed declarations. The notable movement is over thirty days: this ratio has retracted by 2.42 points, after reaching 4.55% a month ago. This pullback suggests that some participants have lightened their bearish bets during the recent rise, without completely disappearing. The valuation level remains demanding, with the stock trading at about 98.4 times the earnings expected for the following fiscal year according to the consensus of surveyed analysts. The €159.97 zone (MM20) now becomes the first technical reference level in the short term.
