Hedge Fund Divisar Dumped nLIGHT Shares Worth $9.6 Million. Is the Stock a Buy or Sell?

Company Overview - nLIGHT is a technology company specializing in high-performance laser solutions, focusing on industrial and defense markets, leveraging advanced semiconductor and fiber laser technologies for precision and reliability in demanding applications [5] - The company designs and manufactures semiconductor and fiber lasers, fiber amplifiers, and beam control systems for various applications, generating revenue through direct product sales and distribution partnerships [8] Financial Performance - nLIGHT has a market capitalization of $3.27 billion, with a trailing twelve months (TTM) revenue of $261.33 million, reflecting a 32% increase over the previous year [3][9] - The company reported a net loss of $23.47 million for the TTM, which is a significant improvement from a loss of $60.8 million the previous year, indicating an improving bottom line [3][10] Stock Performance - As of February 17, 2026, nLIGHT shares were priced at $50.89, representing a 392.2% increase over the past year, significantly outperforming the S&P 500 by 397.5 percentage points [2] - Following a sale of 287,005 shares by Divisar Capital Management, the remaining stake in nLIGHT was valued at $6.23 million less than before, indicating a reaction to the rising stock price [1][6] Investment Insights - Despite the sale, Divisar retained 288,438 shares, suggesting confidence in further stock gains, which was validated as nLIGHT's stock reached a 52-week high of $69.52 on March 4, 2026 [9] - The elevated share price has led to a price-to-sales ratio exceeding 11, indicating a multi-year high, suggesting it may be a good time to sell rather than buy [10]