Why Impinj stock went up today

Actions of push (PI 8.95%) moved higher today on news that the company is joining S&P SmallCap 600 after S&P Global made its quarterly rebalancing announcement Friday afternoon.

As a result, Impinj shares were trading 10% higher since Monday at 2:03 PM ET.

Image source: Getty Images.

Impinj gets a stamp of approval

The announcement from S&P was the latest sign that Impinj’s recent growth is here to stay, as specialist in RFID tags RAIN, which enable the tracking of specific items, has grown since the pandemic.

Being added to the S&P 600 also makes sense because ETFs that track the index, including Vanguard S&P Small-Cap 600 ETF and iShares Core S&P Small-Cap ETFwill now have to buy the stock, helping to increase demand for it.

Stocks like Impinj typically win when added by S&P both for the approval from the stock market index manager and because it will trigger buying by ETFs. The addition will take effect on September 23.

The addition follows a string of strong results from Impinj, including a second-quarter earnings report that included a 19% increase in revenue to $102.5 million and an increase in gross margin from 51% to 56, 1%, which led to the final results. let them rise too.

Can Impinj Stock Keep Going Up?

Impinj’s stock has risen nearly 400% over the past five years as revenue and profits have grown, and the company is a leader in its industry by providing RFID technology to companies such as retailers and manufacturers who use it for supply chain management.

Looking to the third quarter, the company sees revenue rising 42% to a range of $91 million to $94 million and expects adjusted earnings per share of 0.46 to $0.50, up from breaking even in the year-ago quarter.

The stock is expensive, but if it can maintain its growth, it should move higher in the long term.