Coherent’s 4.97% Drop to 52-Week Low Drags 281st-Ranked Stock Amid Sector and Options Turmoil

Coherent (COHR) closed 2025/08/29 at $89.89, down 4.97% with $340 million in trading volume, ranking 281st in market activity. The stock trades near its 52-week low of $45.58 amid sector-wide pressure and shifting analyst sentiment.

The decline coincided with Citi’s strategic realignment favoring sector peers, creating a flight to quality within optical components. Analysts remain bullish on COHR with a $110.07 price target, but bearish options activity intensified, with 188,392 shares traded and 20 active contracts indicating short-term pessimism. Technical indicators show oversold conditions (RSI: 29.22) and bearish momentum (MACD: -2.33), though the 200-day moving average at $86.16 suggests potential support.

Options traders focused on key strikes near $90 and $95, with high-liquidity contracts reflecting speculative positioning. Aggressive strategies targeted a rebound above $94.19 or a breakdown below $90.11, while cautious approaches hedged against volatility. Sector-wide weakness, including broader Electronic Equipment underperformance, amplified Coherent’s selloff, though no company-specific catalysts were identified.

Backtesting a -6% intraday plunge scenario (2015-2025) revealed a negative edge: average trade return of -0.04%, large volatility, and a 73% historical maximum drawdown. The pattern failed to generate consistent profitability, underscoring the stock’s susceptibility to sharp corrections in a volatile sector environment.