Soitec stock rebounds 4%, among the strongest gains on the SBF 120
The Isère-based semiconductor substrate manufacturer is rebounding sharply mid-morning in a well-oriented Paris market. The movement erases part of the profit-taking that has weighed on the security for several weeks.
A rebound that remains below short-term moving averages
The Soitec share gains 4.06% to €128.10 during the session, compared to €123.10 at the previous close. It ranks among the strongest gainers on the SBF 120, which advances 1.1% at the same time.
The security nonetheless remains 7.47% below its 20-day moving average (€138.44) and 4.90% below its 50-day moving average (€134.70), while the 200-day moving average at €102.96 sits 24.42% lower. This rebound has therefore not yet brought the price back toward short-term averages, following a decline of 10.14% over one month. It recovers barely more than a third, with today's gain representing approximately 40% of this decline.
The seven-day gain is limited to 0.71%, a sign that previous sessions had moved in the opposite direction. The RSI at 46 is neutral, and the MACD (-7.26 against -5.86 for its signal line) remains negative.
A €358 million share buyback program and a security that has tripled in one year
The €358 million share buyback program, announced on July 29, is part of the context surrounding the security. The price still shows +225% over one year, and the share is trading at approximately 161.8 times earnings for the current fiscal year and 35.5 times those for the following fiscal year, according to the consensus of surveyed analysts.
The next technical benchmark is located at €111.65 on the support side and €167.55 on the resistance side. In a market where tension over French debt continues to weigh, with a 10-year OAT at 4.94% on October 28, the Fed maintained its rates between 3.75% and 4.00% and the ECB is expected to hold steady this Thursday.
