What Happened?
Shares of RFID manufacturer Impinj (NASDAQ: PI) fell 22.1% in the morning session after the company issued a weak financial outlook for the first quarter of 2026 and received an analyst downgrade.
The company projected first-quarter revenue between $71 million and $74 million. This forecast was not only below its fourth-quarter revenue of $92.85 million but also implied a year-over-year decrease of about 2.4% at the midpoint. Management cited inventory reductions across logistics and retail channels, as well as expected project delays, for the softer guidance. The weak forecast overshadowed the company's fourth-quarter results, which met earnings and revenue estimates. Reacting to the news, Evercore ISI downgraded the stock from Outperform to In Line and cut its price target to $112.00 from $273.00. The firm pointed to higher volatility and slower near-term growth, now modeling a 4% revenue decline for the full year compared to a previous projection of 26% growth.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Impinj? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Impinj’s shares are extremely volatile and have had 43 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 16 days ago when the stock gained 10.1% on the news that well-known tech investor Dan Niles named the company a top stock to own for 2026, believing it had reached a major turning point.
Niles highlighted that Impinj, a leader in RFID technology, was at an inflection point as its chip prices dropped to a penny apiece. He noted this development allowed for expansion from the apparel sector into the much larger food and grocery market, with adopters like Walmart. The bullish outlook was supported by news suggesting new applications for RFID technology. Specifically, a recommendation was made for the South Korean military to adopt an RFID system for handling firearms to prevent accidents, indicating a potentially expanding market for the company's products.
Impinj is down 33.9% since the beginning of the year, and at $118.75 per share, it is trading 50.9% 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 $1,837.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
