Shares of Impinj (NASDAQ:PI) declined on Wednesday, down about 13.7% at market close. There was no company-specific news. The stock tumbled right along with the broader market, particularly the tech-heavy Nasdaq Composite Index, which shed 4.4% of its value on Wednesday.
Impinj, which specializes in radio-frequency identification solutions, saw its stock surge in September when the company regained Nasdaq compliance after delaying its quarterly filing. The stock is still down roughly 70% from its peak in late 2016.
The company has been struggling with an inventory adjustment at its partners that has pushed down shipments of its IC (integrated circuit) endpoints. Revenue has declined for three straight quarters beginning in the fourth quarter of 2017. In the second quarter of 2018, sales slumped by 16.3% year over year.
Impinj believes this inventory issue is now mostly resolved. The company expects to produce year-over-year revenue growth in the third quarter, although a return to profitability is likely still a ways off.
Shares of Impinj are falling because the market is falling, plain and simple. If you liked the stock before today, you should like it even more at a lower price.
Impinj is scheduled to report its third-quarter results on Oct. 29. If the company can beat expectations, a recovery for the stock could be in the cards.