Why Impinj Stock Was Soaring Today

Core Viewpoint - Impinj is being added to the S&P SmallCap 600 index, which is expected to increase demand for its stock due to ETF purchases [1][2][3] Group 1: Company Performance - Impinj has experienced significant growth, with a 19% increase in revenue to $102.5 million in the second quarter and a rise in gross margin from 51% to 56.1% [3] - The company anticipates third-quarter revenue growth of 42%, projecting a range of $91 million to $94 million, along with adjusted earnings per share of $0.46 to $0.50, compared to breakeven in the same quarter last year [4] Group 2: Market Impact - The addition to the S&P 600 is likely to trigger buying from ETFs that track the index, such as the Vanguard S&P Small-Cap 600 ETF and iShares Core S&P Small-Cap ETF, thereby increasing stock demand [2][3] - Historically, stocks like Impinj tend to gain upon being added to the S&P index due to the endorsement from the index manager and subsequent ETF buying [3] Group 3: Stock Performance - Impinj's stock has appreciated nearly 400% over the last five years, driven by soaring revenue and profits, establishing the company as a leader in RFID technology for supply chain management [4][5] - Although the stock is considered pricey, continued growth could lead to further price increases in the long term [5]