Should I Buy PXLW? PXLW 2026 Analysis

Should You Buy Pixelworks Inc (PXLW) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

6.780

1 Day change

3.67%

52 Week Range

15.420

Analysis Updated At

2026/01/26

Pixelworks Inc (PXLW) is not a good buy for a beginner investor with a long-term strategy at this time. The company is facing declining financial performance, insider selling, and lacks positive catalysts or strong trading signals to justify immediate investment. The technical indicators and options data do not suggest a strong entry point, and the stock's short-term trend indicates potential further downside.

Technical Analysis

The MACD is slightly positive but contracting, indicating weak bullish momentum. The RSI is neutral at 40.48, and moving averages are converging, showing no clear trend. The stock is trading near its support level (S1: 6.416), with resistance at R1: 7.042. Overall, the technical indicators suggest a lack of strong upward momentum.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

No significant positive catalysts identified. The divestiture of the Shanghai subsidiary could potentially improve focus on core operations, but this is speculative and not an immediate driver.

Neutral/Negative Catalysts

Insider selling has increased significantly (+174.29% in the last month), indicating potential lack of confidence from management. Financial performance has deteriorated significantly in Q3 2025, with revenue, net income, EPS, and gross margin all declining. No recent news or congress trading data to support bullish sentiment.

Financial Performance

In Q3 2025, revenue dropped by -7.94% YoY to $8.77M. Net income fell by -45.56% YoY to -$4.43M, and EPS declined by -51.20% YoY to -0.81. Gross margin also decreased slightly to 49.83% (-2.69% YoY). Overall, the financials indicate poor growth trends and declining profitability.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Roth Capital analyst Suji Desilva lowered the price target from $15 to $12 while maintaining a Buy rating. The analyst cited seasonal Q3 performance and the pending sale of the Shanghai subsidiary as reasons for the adjustment. However, the lowered price target reflects reduced optimism for the stock.

1 Analyst Rating

Wall Street analysts forecast PXLW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PXLW is 12 USD with a low forecast of 12 USD and a high forecast of 12 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

0 Hold

0 Sell

Moderate Buy

Current: 6.540

Low

Averages

High

Current: 6.540

Low

Averages

High

Roth Capital

Suji Desilva

Buy

downgrade

$15 -> $12

AI Analysis

2025-11-11

Reason

Roth Capital

Suji Desilva

Price Target

$15 -> $12

AI Analysis

2025-11-11

downgrade

Buy

Reason

Roth Capital analyst Suji Desilva lowered the firm's price target on Pixelworks to $12 from $15 and keeps a Buy rating on the shares. The company reported a seasonal Q3 and retracted guidance given the pending close of the sale of the company's Shanghai subsidiary, the analyst tells investors in a research note. Following the close of the quarter, Pixelworks also announced a transaction to divest its Shanghai business along with a pair of funding events, the firm added.

Roth Capital

Buy

downgrade

$20 -> $15

2025-10-16

Reason

Roth Capital

Price Target

$20 -> $15

2025-10-16

downgrade

Buy

Reason

Roth Capital lowered the firm's price target on Pixelworks to $15 from $20 and keeps a Buy rating on the shares. The company announced the divestiture of its Shanghai subsidiary to a Chinese semiconductor company in an all-cash transaction, and the firm expects the incremental funds to support the advancement of the company's US-based TrueCut motion customer development and licensing efforts, the analyst tells investors in a research note.

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PXLW Should I Buy

PXLW Should I Buy

Should You Buy Pixelworks Inc (PXLW) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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