Shares of radio frequency identification solutions provider Impinj (NASDAQ:PI) jumped on Tuesday -- up about 13.5% at 11:30 a.m. EDT -- despite no company-specific news. The last major development was a better-than-expected first-quarter report on May 7 that sent the stock soaring.
The stock has been volatile over the past year, plunging from above $50 per share to below $10 after the company's once-impressive revenue growth reversed. Impinj blames an inventory correction at its partners, which it expects to be mostly resolved in the first half of the year.
After Tuesday's rally, shares of Impinj have now nearly doubled since hitting their 52-week low. The company's first-quarter results, reported earlier this month, provided enough good news to bring some optimism back to the stock. Impinj beat analyst estimates for revenue, and its second-quarter guidance was above the consensus estimate. Revenue is still declining, but the situation is a bit better than analysts were expecting.
It's still not entirely clear whether there are issues other than the inventory correction at play. Impinj will need to return to growth during the second half of the year to prove to investors that its revenue woes are truly temporary.
After relentlessly beating down Impinj stock over the past year, the market is starting to warm up to the company once again. Whether these gains will hold depends on Impinj's performance throughout the rest of 2018.