On August 06, 2026, Impinj Inc PI shares rose by 5.2%, bringing the current price to $171.91. The stock has experienced notable volatility over the past year, with a 52-week high of $247.06 and a low of $87.36.
- GF Valueâ„¢ verdict: Current price is $171.91 versus GF Valueâ„¢ of $136.67, indicating the stock is 25.8% overvalued.
- GF Scoreâ„¢ of 74/100 suggests that the company is rated as Above Average.
- Most notable signal: Insiders sold $49.4M worth of shares in the last 3 months with no buying activity.
Is PI Overvalued or Undervalued?
Impinj Inc’s current price of $171.91 is significantly above the GF Value™ estimate of $136.67, marking the stock as 25.8% overvalued. The GF Value™ is GuruFocus' proprietary estimate of intrinsic value, based on historical trading multiples, past business growth, and future performance forecasts. This high valuation raises concerns about the stock’s current pricing relative to its fundamentals, especially given that Impinj is currently a cash-flow-negative entity. Consequently, relying on traditional earnings-based valuation metrics like the P/E ratio may not provide an accurate assessment of the company's value.
The GF Valuation label categorizes Impinj as Modestly Overvalued, which signals a potential risk for investors who may be considering entering a position at these elevated levels. The overvaluation indicates that there could be a margin of safety missing for potential investors, making it wise to exercise caution or seek alternative entry points.
How Does PI's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | N/A | 372.6x |
| Forward P/E | 82.7x | N/A |
It is important to note that Impinj does not currently have a TTM P/E ratio available, which is indicative of its unprofitability status. In contrast, the stock's historical 5-year median P/E ratio stands at an extremely high 372.6x. The forward P/E ratio of 82.7x suggests that while there are expectations for future earnings growth, the absence of consistent earnings makes the P/E analysis less applicable in this context. This aligns with the GF Valueâ„¢ verdict, suggesting that the stock may not be a sound investment at current levels.
What Does PI's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ evaluates a company's fundamentals across various dimensions, which helps in identifying its investment potential. Impinj Inc holds a GF Scoreâ„¢ of 74/100, indicating that the company is performing above average relative to its peers. The strongest sub-rank is in the Growth category with a score of 8/10, suggesting that the company has strong growth prospects. However, the weakest area is in Profitability, where it scores just 3/10, indicating challenges in generating profits.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 74 |
| Financial Strength | 5/10 |
| Profitability | 3/10 |
| Growth | 8/10 |
| Valuation | 6/10 |
| Momentum | 7/10 |
Overall, the mixed scores highlight that while Impinj has a promising growth outlook, its profitability challenges could pose risks. The financial strength rating of 5/10 suggests that the company is somewhat stable, but the low profitability rank indicates ongoing struggles that could impact long-term performance.
What Are Gurus and Insiders Doing with PI?
Currently, five gurus hold shares in Impinj Inc, with three adding to their positions and three trimming their holdings in recent quarters. This mixed activity among institutional investors suggests a cautious approach to the stock, which may reflect concerns about its valuation and profitability metrics.
Additionally, insider activity shows that insiders sold $49.4 million worth of shares in the last three months without any buying activity. This trend of selling by insiders could be interpreted as a lack of confidence in the company's near-term performance or valuation, making it a crucial factor for potential investors to consider.
What This Means for Investors
Based on the analysis, Impinj Inc PI is currently overvalued, with a significant disconnect between its market price and GF Valueâ„¢ estimate. While the company shows promise in terms of growth, its lack of profitability and insider selling activity raise red flags for potential investors. Caution is advised when considering an investment in this stock at current levels. For more insights, visit the Impinj Inc (PI) stock page for detailed information.
Frequently Asked Questions
What is PI's GF Scoreâ„¢?
PI has a GF Scoreâ„¢ of 74/100, indicating that it performs above average relative to its peers in the market.
Is PI overvalued or undervalued?
PI is currently overvalued, with the GF Valueâ„¢ estimate indicating a 25.8% premium over its fair value.
What is PI's P/E ratio?
PI does not have a TTM P/E ratio available due to its unprofitability, but its forward P/E ratio is 82.7x, reflecting high expectations for future earnings growth.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
