Coherent Stock Plunges 2.95% Amid Strategic Shifts and Mixed Analysts; $320M Volume Ranks 350th

Coherent (COHR) closed 2.95% lower on September 2, with a trading volume of $0.32 billion, ranking 350th in market activity for the day. The decline occurred amid a backdrop of strategic business adjustments and mixed analyst commentary.

A significant insider filing revealed Stephen A. Skaggs, a Coherent director, was awarded 2,272 restricted stock units (RSUs) on August 28, 2025. These shares, set to vest on August 28, 2026, highlight ongoing alignment between executives and long-term shareholder interests. The filing, submitted via SEC Form 4, underscores management’s focus on retention and performance-based incentives.

The stock’s recent volatility followed Coherent’s announcement of selling its aerospace and defense business to Advent for $400 million. While the transaction aims to streamline operations and focus on core markets like AI datacenters, the sale sparked short-term uncertainty. Analysts at KGI and Northland Securities maintained "Outperform" ratings, citing growth potential in laser technology for AI infrastructure. However, earnings guidance below expectations and competitive pressures in the datacom sector contributed to investor caution.

Coherent’s Q4 2025 earnings report, released on August 13, showed record revenue but included weaker-than-anticipated guidance. Despite beating EPS forecasts, the stock dropped sharply post-earnings, reflecting concerns over near-term demand. Analysts at Rosenblatt and Stifel reiterated bullish stances, emphasizing strategic optimizations and AI-driven demand, but the market reaction indicated skepticism about execution risks.