Based on the analysis of Impinj Inc. (PI) stock, here is a concise recommendation:
Analysis and Insights:
Impinj Inc. (PI) has shown significant underperformance recently, with a 21.3% decline in the past month. This drop is attributed to various challenges, including geopolitical tensions, excess inventory among customers, and competitive pressures from companies like NXP Semiconductors and Zebra Technologies. The stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend.
From a fundamental perspective, analysts have lowered their price targets for PI, with Needham reducing it from $182 to $130 and Cantor Fitzgerald from $260 to $133. Additionally, the company's revenue is expected to decline by 1.64% in 2025, with earnings per share projected to drop by 30.33%. These factors suggest a challenging outlook for the stock.
Technically, the stock's RSI is around 40-45, indicating it is in oversold territory but not extremely so. The MACD is negative, signaling bearish momentum. The stock is also below the lower Bollinger Band, which, combined with the overall downtrend, suggests continued weakness.
Conclusion:
Given the significant decline, negative revenue and earnings outlook, lowered price targets, and bearish technical indicators, it is advisable to consider selling PI stock at this time to mitigate potential further losses.