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What's Next for Overlooked Impinj Stock?

Impinj is heavily shorted

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Semiconductor name Impinj, Inc. (NASDAQ:PI) produces chips, readers, reader chips, antennas, and software applications for encoding chips and gathering business intelligence. It doesn't get the headlines of Nvidia (NVDA), Intel (INTC), or Micron (MU), but the chip stock is worth a closer look. 

PI is up 231% year-over-year, and 29% already in 2021. And while the shares have taken a breather since their Feb. 11 record high of $79.05, their 100-day moving average contained the pullback. 

PI Stock Chart

A short squeeze could keep the tailwinds coming. Short interest only increased by 1.7% in the most recent reporting period, yet the 2.92 million shares sold short accounts for a healthy 13.9% of PI's total available float.

From a fundamental point of view, the brightest thing Impinj has going for it is its balance sheet. PI's cash balance of $106 million outweighs its debt of $73.46 million by more than $30 million. However, Impinj is still a good distance away from profitability and has only gotten further away in recent years. In fiscal 2020, the company’s revenues fell over 9% and its net losses grew by almost $30 million, reaching $52 million in losses. So despite PI's run up the charts in the last 12 months, the balance sheet will be worth monitoring going forward.

 

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