Impinj, Inc.’s (NASDAQ:PI) more than 10% owner, Sylebra Capital Ltd., has been on a buying spree of PI stock over the past week. Since August 11, when the insider first purchased the stock, shares of the company have gained more than 5%.
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Based in Seattle, WA, Impinj manufactures radio-frequency identification devices and software.
As per the most recent SEC filing, Sylebra Capital bought 48,171 shares of PI stock at a weighted average price of $58.45 per share. The transaction’s total consideration stands at about $2.82 million.
Prior to this, the firm disclosed that it had purchased PI stock worth $43.05 in the period between August 15 and August 18. With the completion of the latest transaction, Sylebra Capital holds 3.64 million company shares, worth $216.55 million.
Insider Move Follows Q2 Results
It’s worth highlighting that Sylebra Capital’s purchases of PI stock came after the company’s better-than-expected second-quarter results were released on July 27. Furthermore, Impinj’s top-line numbers reached a new record in the reported quarter owing to strong system revenue.
Following the earnings release, six analysts reiterated a Buy rating on the stock. Among the bullish analysts, Toshiya Hari from Goldman Sachs believes Impinj’s competitive advantage is supported by its complete product offering. Alongside the Buy rating, Hari’s $101 price target implies upside potential of over 62%.
Bullish Insider Trading Signal
Overall, corporate insiders have bought PI shares worth $47.2 million over the last three months. TipRanks’ Insider Trading Activity Tool shows that insider confidence in Impinj is currently Positive.
Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is PI a Good Stock to Buy?
PI stock is down 43.5% year-to-date. The sharp sell-off in the stock price could mark a good entry point for investors. The company’s growth potential can be indicated by sound demand for RFID technology along with long-term profitability and growth prospects based on Impinj’s backlog of non-cancelable orders.
Overall, PI stock has a Moderate Buy consensus rating on TipRanks. This is based on six Buys and 1 Sell rating. The average stock price target of $90.86 implies 45.9% upside potential.
