Please ensure Javascript is enabled for purposes of website accessibility

Why Impinj Stock Popped 24.4% in January

By Steve Symington - Feb 11, 2020 at 8:30AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One analyst thinks the RFID technology leader could win big as a key retailer ramps its RFID initiatives.

What happened

Shares of Impinj (PI 0.65%) climbed 24.4% in January, according to data from S&P Global Market Intelligence, after an analyst upgraded the tech stock on speculation it could benefit from Walmart's impending ramp of radio-frequency identification (RFID) initiatives.

So what

Impinj climbed as high as 13% on Jan. 22, 2020 alone when Dougherty analyst Charles Anderson reaffirmed his "buy" rating on the stock. Anderson also assigned a $38-per-share price target, pointing to research indicating Walmart will begin using RFID tags to better track inventory and checkout for apparel products later this year.

Woman riding escalator and carrying multiple colorful shopping bags.

Image source: Getty Images.

Now what

Of course, investors should tread lightly here as neither Walmart nor Impinj has announced a formal agreement to use Impinj's technology as part of the reported RFID roll-out process. But make no mistake, Impinj could win big if Walmart's approval serves to open the floodgates as more retailers embrace RFID solutions going forward.

Perhaps investors will receive more color to that end when Impinj releases fourth-quarter 2019 results on March 2, 2020. But in the meantime, I can't blame Impinj investors for bidding up the stock last month in response to that encouraging analyst prediction.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Impinj. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Impinj, Inc. Stock Quote
Impinj, Inc.
PI
$97.00 (0.65%) $0.63

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
394%
 
S&P 500 Returns
127%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.