Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 29 Jul, 25 | PI | Buy | USD 126.13 | USD 132.0 | USD 140.0 | 2 days | Closed |
30.30%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company's platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.
Lower Operating Costs in R&D (Non-GAAP): Impinj reported non-GAAP research and development (R&D) expenses of USD 17.3 million in Q1 FY25, a slight decrease from USD 17.6 million in Q1 FY24
Improved Gross Margin: Impinj achieved a non-GAAP gross margin of 52.7% in Q1 FY25, which represents a modest improvement over the 51.5% recorded in Q1 FY24
Sharp Drop in Free Cash Flow: The company reported a negative free cash flow of USD (13.0) million in Q1 FY25, compared to a positive USD 8.9 million in Q1 FY24
Decline in Revenue: Impinj's total revenue fell to USD 74.3 million in Q1 FY25, down from USD 85.9 million in Q1 FY24, representing a 13.5% year-over-year decrease
Impinj’s performance is highly sensitive to endpoint IC demand cycles and supply chain volatility, which could materially impact revenue stability and cash flow generation
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 126.13 | 116.0 | 132.0 | 140.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Steady Revenue but Sequential Decline: In the first quarter of fiscal 2025, Impinj, Inc. reported total revenue of USD 74.3 million, marking a sequential decline from USD 91.6 million in Q4 2024 and USD 95.2 million in Q3 2024. The endpoint IC segment generated USD 61.2 million in revenue, while the systems segment contributed USD 13.1 million. This performance reflects headwinds in demand compared to the prior two quarters, though it is a marginal improvement from the USD 70.7 million achieved in Q1 2024.
Gross Margin Trends and Operating Investments: Impinj recorded a non-GAAP gross margin of 52.7% for Q1 2025, slightly below the 53.1% in Q4 2024 and 52.4% in Q3 2024. This stable margin demonstrates effective cost management despite the sequential revenue contraction. The company maintained disciplined research and development investments, with non-GAAP R&D expenses totaling USD 17.3 million, slightly down from USD 18.0 million in the preceding quarter, suggesting continued innovation efforts amid cautious cost control.
Earnings Impacted by Prior-Year Comparison: The non-GAAP net income for Q1 2025 stood at USD 6.3 million, translating to a diluted earnings per share (EPS) of USD 0.21, unchanged from Q1 2024. However, it is significantly lower than the USD 0.83 EPS reported in Q2 2024 and USD 0.56 in Q3 2024. The decline is primarily due to lower top-line performance and the absence of extraordinary gains like the USD 45 million litigation settlement recorded in Q1 2024.
Deterioration in Cash Flow Performance: A notable concern in Q1 2025 was the sharp deterioration in free cash flow. The company posted a negative free cash flow of USD (13.0) million compared to a positive USD 8.5 million in Q4 2024 and USD 4.7 million in Q3 2024. This reversal was driven by an operating cash outflow of USD (11.1) million, indicating pressure on working capital efficiency and possibly weaker collections or inventory build-up.
Balance Sheet and Liquidity Overview: Impinj closed the quarter with a cash and investments balance of USD 232.5 million and held USD 287.5 million in convertible debt. The company continues to benefit from a scalable, asset-light manufacturing model, which supports its strategic flexibility. Federal net operating losses (NOLs) of USD 190.3 million remain available, providing potential tax shield benefits in future profitable periods.
Strategic Positioning and Market Vision: Despite short-term financial volatility, Impinj maintains a long-term growth vision anchored in expanding RAIN RFID technology adoption. With over 120 billion endpoint ICs sold to date and a portfolio of over 300 patents, the company is strategically positioned to capture opportunities across retail, logistics, automotive, and other IoT-heavy industries. The focus remains on driving recurring revenue through integrated platform offerings and enterprise partnerships.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Impinj Inc. (NASDAQ: PI) at the closing market price of USD 126.13, as on July 28, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Communication Equipment
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| PI Impinj Inc |
2.87 1.72% | 169.36 | - | 140.85 | 10.61 | 95.61 | 11.20 | -128.3885 |
| CSCO Cisco Systems Inc |
1.00 1.32% | 77.00 | 15.64 | 12.80 | 3.43 | 4.25 | 3.19 | 10.03 |
| MSI Motorola Solutions Inc |
-0.575 0.15% | 373.92 | 31.36 | 23.98 | 5.22 | 141.85 | 5.79 | 20.98 |
| HPE Hewlett Packard Enterprise Co |
-0.3 1.25% | 23.72 | 10.92 | 8.74 | 0.74 | 1.02 | 1.02 | 5.92 |
| ERIXF Telefonaktiebolaget LM Ericsson Class B |
- -% | 9.50 | - | 11.38 | 0.07 | 1.95 | 0.07 | 0.74 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Jul 28,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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