Movement Alert|Coherent Falls 3.1% in Regular Trading, Profit-Taking Persists After Earnings-Fueled Rally Amid Optical Communications Sector Pullback

Market Focus
08/20

On August 20, Coherent fell 3.1% in regular trading, trading near $279.06/share, with turnover of approximately $274 million. The stock extended its decline for a third consecutive session as selling pressure continued.

The drop reflects ongoing profit-taking following a sharp rally driven by strong fiscal Q4 results and a wave of Wall Street upgrades. Coherent previously reported Q4 revenue of $2.05 billion, up 34% year-over-year, and adjusted EPS of $1.74, up 74% year-over-year, both exceeding consensus estimates. JPMorgan raised its target price to $435, Jefferies and Needham both set targets at $420, and Morgan Stanley lifted its target to $375. The stock had accumulated substantial gains before the reversal began.

At the sector level, optical communications stocks have seen sustained collective selling since August 18, with Fabrinet previously plunging nearly 20% in a single session and Lumentum falling over 9%. Rising long-term U.S. Treasury yields have further pressured high-valuation technology names, intensifying the rotation away from capital-intensive AI hardware plays.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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