Ouster Inc.'s stock plummeted 10.10% intraday on Tuesday, continuing a recent pattern of sharp declines for the lidar technology company.

The sharp drop follows a downgrade by President Capital from Buy to Neutral, which signaled a short-term profit-taking opportunity for investors. While the investment bank raised its price target from $31 to $35, the downgrade contributed to selling pressure.

Investors have been locking in gains after the stock surged over 16% following the launch of its Rev8 digital lidar sensor series earlier in the month. The Rev8, developed in collaboration with Fujifilm, represents the industry's first native color lidar product and had generated significant enthusiasm in the lidar sector.