Shares of Coherent Corp. (COHR) declined in after-hours trading on Thursday, February 12, 2026, following a regulatory disclosure that a major shareholder affiliated with Bain Capital divested its entire position in the company. The stock fell approximately 3.3%, trading around $216.10 in the extended session.
Major Stake Liquidated in Block Trade
According to a Schedule 13D/A filing with the Securities and Exchange Commission, the entity BCPE Watson (DE) BML, LP sold 9,437,238 shares of Coherent common stock. The transaction, executed as a Rule 144 block trade on February 9, was priced at $235.58 per share, aggregating a total value of roughly $2.22 billion. Post-sale, the filing confirms the Bain Capital affiliate holds zero beneficial ownership of Coherent stock. The filing also noted an intention to distribute 338,608 shares to certain members or partners for charitable purposes.
Market Context and Peer Performance
The sale occurred against a backdrop of broader market weakness, particularly in technology and growth-oriented sectors. The Nasdaq Composite Index fell nearly 2% on Thursday as investors exhibited caution ahead of the impending U.S. inflation data report scheduled for Friday. Traders are also scrutinizing whether the significant market investments in artificial intelligence will yield near-term returns.
Within the photonics and laser technology peer group, performance was mixed on Thursday. Lumentum Holdings Inc. (LITE) saw a modest gain of 1.7%, while IPG Photonics Corporation (IPGP) surged close to 35%. In contrast, Applied Optoelectronics, Inc. (AAOI) declined by 9%.
Understanding Block Trades and Market Implications
Block trades are large, privately negotiated transactions typically facilitated by investment banks, allowing shareholders to liquidate substantial positions swiftly, often at a discount to the prevailing market price. Rule 144 is an SEC regulation governing the sale of restricted or control securities. Such filings frequently signal a major investor's exit and can introduce near-term supply pressure, even if the underlying company's fundamentals remain unchanged. For high-growth hardware stocks like Coherent, large-scale investor exits can potentially temper upward momentum by increasing the available share float.
Coherent's stock traded between $209.75 and $229.60 during the Thursday session before the after-hours dip. Despite the recent pullback from a 52-week high of $239.17, the share price remains significantly elevated above its 52-week low of $54.00.
Additional Corporate Developments
In a separate filing on Thursday, Coherent's Chief Financial Officer, Sherri Luther, detailed a pre-arranged trading plan to sell 4,000 shares. Adopted under a Rule 10b5-1 plan on November 13, 2025, the sale would have a market value of approximately $894,760 and will be executed by Morgan Stanley Smith Barney.
On a positive note, the company also announced that six of its optical networking products received awards in the 2026 Lightwave Innovation Reviews. The honored products, which include transceivers and gear used in data center and communications infrastructure, were highlighted for their technological advancement. "These awards reflect the strength and depth of our technology," stated Chief Technology Officer Julie Eng.
Forward-Looking Risks and Investor Focus
A key risk for investors is that selling pressure may not be confined to this single block trade. Although the Bain affiliate now reports zero ownership, the market will monitor for any additional supply entering the market. This could stem from further insider sales, the distribution of the earmarked charitable shares, or signals of weakening demand. Any such developments could necessitate a recalibration of market expectations for the stock.
Immediate focus now shifts to Friday's U.S. inflation report, a critical data point for Federal Reserve policy and broader market sentiment. Investors will also await further details on the settlement of the block trade and the subsequent handling of the distributed shares.
