nLIGHT Inc. (LASR) is learning that timing isn't everything, but it sure matters. The high-power laser manufacturer announced a proposed public offering of common stock on Tuesday evening, and investors responded by hitting the sell button in after-hours trading.

The Offering Details

nLIGHT has kicked off an underwritten public offering of its common stock through its existing shelf registration statement. The company is also giving underwriters a 30-day option to purchase up to an additional 15% of the shares being offered. Neither pricing nor the number of shares have been disclosed yet.

For context, nLIGHT had approximately $81.11 million in total cash and cash equivalents at the end of the third quarter. The company specializes in high-power lasers used for directed energy, optical sensing, and advanced manufacturing applications.

The announcement arrives with interesting timing. Earlier Tuesday, nLIGHT shares actually hit a 52-week high after Roth Capital maintained a Buy rating and bumped its price target from $44 to $55. Talk about a plot twist.

Technical Picture Shows Long-Term Strength

Despite the after-hours selloff, LASR stock maintains an impressive long-term trajectory. Shares are trading 9.3% below their 20-day simple moving average, signaling some short-term softness. But zoom out to the 100-day SMA, and the stock sits 30.6% above that level. Over the past 12 months, shares have rocketed more than 355%.

The technical indicators tell a story of mixed momentum. The RSI currently reads 67.50, landing in neutral territory and suggesting the stock is neither overbought nor oversold. Meanwhile, the MACD sits above its signal line, indicating bullish momentum even as the price faces near-term pressure.

Traders are watching key resistance at $48.50 and support at $42.50 as the stock navigates this offering announcement.

After-Hours Action

nLIGHT shares dropped 8.96% in after-hours trading Tuesday, changing hands at $45.50 at the time of publication.