Impinj Stock Discussion

CEO Chris Diorio sees an improving situation, though it's early to declare the retail downturn over. Analyst James Ricchiuti predicts over 20% growth in 2025, with retail market demand normalizing by early 2024.

Impinj's inventory and EPS show positive signs, but declining margins are worrisome. Slowing revenue growth is expected to fall next quarter, yet analysts predict a 12.6% growth recovery next year. Stock is up 13.6% post-reporting, trading at $121/share.

Despite strong performance, high P/S ratio and weaker forecasted revenue growth could risk share price. Investors are warned against relying heavily on price-to-sales ratios. Weak revenue outlook indicates potential share price decline, risking investments.

RBC believes smaller firms are unrecognized for balance sheet improvements made in recent low-rate environment, and future Fed rate cuts may boost them. Tech microcaps like Weave Communications and SoundThinking are seen as having strong growth potential while Impinj, post-pandemic downfall, could benefit from falling component costs and retail expansion.

Insiders' net purchases in the past year and an insider's willingness to buy shares at a price higher than the current one suggest potential confidence in the company's value. Despite few recent insider transactions, Impinj's overall insider activity hints at a promising future.

Impinj's consistent revenue growth is appealing for growth investors while insiders' increased purchases signal positivity. However, recent stock drop despite long-term profits may deter some investors.