Shares of nLIGHT Inc, traded on NASDAQ under the ticker LASR, experienced a notable decline in after-hours trading on Tuesday following the company’s disclosure of a proposed public offering of its common stock. The news initiated a bearish reaction in the market, reflecting investor caution around potential dilution and capitalization changes associated with the offering.
The firm revealed that it has commenced an underwritten public offering pursuant to its existing shelf registration statement. Additionally, nLIGHT is granting the underwriters an option to purchase up to an extra 15% of the shares offered within a 30-day window, a common provision known as a greenshoe option. Neither the pricing details nor the specific terms of the offering have been made public at this stage.
nLIGHT operates principally as a provider of high-power laser systems designed for mission-critical applications including directed energy, optical sensing, and advanced manufacturing processes. As of the conclusion of the third quarter, the company reported total cash and cash equivalents amounting to approximately $81.11 million, offering some liquidity visibility for investors evaluating the transaction’s impact.
Market response to the announcement was swift. After-hours trading data indicated a decline of 8.96% in nLIGHT’s share price, with LASR quotes at $45.50 at the time of the latest report. This downward move contrasts sharply with the intraday performance of the stock, which earlier reached a 52-week high following positive analyst support; specifically, a Buy rating and an uplifted price target from $44 to $55 provided by Roth Capital.
From a technical analysis perspective, LASR’s stock price behavior reflects some nuanced momentum dynamics. On one hand, the stock is trading approximately 9.3% below its 20-day simple moving average (SMA), indicating short-term weakness and heightened selling pressure following the announcement. Conversely, it remains 30.6% above its 100-day SMA, signifying that the stock is sustaining a robust and enduring bullish trend over a longer timeframe.
Further technical indicators present a mixed picture: the Relative Strength Index (RSI) stands at 67.50, positioned within neutral territory and suggesting the security is neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) is situated above its signal line, which generally indicates ongoing bullish momentum contrary to the recent price decline. Together, these data points highlight a juxtaposition of longstanding investor confidence and near-term uncertainty sparked by the offering news.
Key technical price levels are noted at $48.50 as resistance and $42.50 as support. These thresholds may serve as reference points for traders monitoring possible price recovery or further declines amid evolving market conditions related to the equity offering.
The combination of a strong long-term trend and the short-term response to corporate financing initiatives underscores the complexities investors face when balancing growth narratives against potential dilution risks. With LASR having appreciated more than 355% over the last twelve months, sustaining investor confidence will likely depend on both the outcome of the offering and broader performance fundamentals moving forward.