What Happened?
Shares of RFID manufacturer Impinj (NASDAQ: PI) fell 10.2% in the morning session after the company's in-line fourth-quarter revenue guidance overshadowed its third-quarter earnings beat.
Impinj reported strong third-quarter results, with revenue of about $96.1 million and a non-GAAP profit of $0.58 per share, both beating Wall Street's expectations. However, sales were flat compared to the same period in the previous year. The main cause for the stock's drop was the company’s forecast for the upcoming fourth quarter. Impinj projected revenue between $90 million and $93 million. The midpoint of this range, $91.5 million, was roughly in line with what analysts were expecting. This guidance appeared to disappoint investors, who reacted by selling shares despite the solid third-quarter performance and better-than-expected profit guidance for the fourth quarter.
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What Is The Market Telling Us
Impinj’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. But moves this big are rare even for Impinj and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 3.9% on the news that analysts from Cantor Fitzgerald and Barclays issued positive commentary on the stock. Cantor Fitzgerald's Troy Jensen maintained an overweight rating, which is similar to a buy, and lifted the firm's price target to $217 per share from a previous level of $158. In a separate note, Barclays' analyst Guy Hardwick initiated coverage on the company's shares with a buy rating and set a price target of $200. These bullish actions from financial analysts signaled confidence in the company's outlook and often influence investor sentiment.
Impinj is up 44.7% since the beginning of the year, but at $212.29 per share, it is still trading 12.2% below its 52-week high of $241.91 from October 2025. Investors who bought $1,000 worth of Impinj’s shares 5 years ago would now be looking at an investment worth $8,322.
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