Soitec stock plunges 4% in morning trading after +31% gain in one month
Soitec is losing ground this Thursday in an unfavorable market environment, as European markets retreat under pressure from bond yields. The stock, which had posted an exceptional rebound since early September, finds itself among the most neglected values in the SBF 120 index.
A decline of nearly 4% that contrasts with an exceptional monthly and annual performance
Soitec is down 3.95% in trading at €144.70, in an SBF 120 that is declining by 0.77%. The move brings the stock to the bottom of the index, whereas Monday's session had propelled it to the top with a surge of nearly 7% and a breakthrough above the €146.35 resistance level. This pullback brings the stock back below this threshold that several bullish attempts had failed to overcome in recent weeks.
The correction occurs in a context of rising bond yields, which weighs on all growth and technology stocks with high valuations. Over one month, the gain remains substantial at +31.79%, and over one year, the increase reaches +277.8%, a performance explained notably by the upward revision of approximately 50% in revenue growth forecast for Q2, driven by the Photonics-SOI business announced in early September. The VIX climbs 14.64% in trading, reflecting heightened market nervousness, in an environment unfavorable to profiles like Soitec whose valuation remains very elevated. According to the consensus of surveyed analysts, the stock is trading at approximately 43.2 times expected earnings for the following fiscal year.
A price well above its moving averages, despite the RSI sell signal
Despite today's decline, the technical configuration of Soitec remains broadly bullish fundamentally. The stock is trading at €144.70, or 10.03% above its 20-day moving average at €131.51 and 21.65% above its 50-day moving average at €118.95, reflecting an intact medium-term dynamic. The RSI at 63 remains in positive territory without signaling extreme overbought conditions, which suggests today's decline as a pause in an uptrend rather than as a reversal.
The next natural support in the event of continued decline is found at the €107.85 level, still well below the current price. Furthermore, the issuance of ORNANE bonds of €500 million maturing in 2033, announced on September 17, 2026, had introduced a potential dilution effect that continues to weigh on investor perception, even though the proceeds are intended for the company's general needs. Resistance at €154.85 now constitutes the next level to monitor to confirm or deny the strength of the recent bullish movement.
