On September 6, 2023, Jeffrey Dossett, Chief Revenue Officer of Impinj Inc (PI, Financial), sold 2,000 shares of the company. This move is part of a larger trend for Dossett, who over the past year has sold a total of 45,532 shares and purchased none.
Impinj Inc is a leading provider of RAIN RFID solutions. The company's platform allows businesses to wirelessly connect billions of everyday items such as apparel, medical supplies, automobile parts, drivers' licenses, food and luggage to the internet, thereby enabling the physical world to join the digital universe. Impinj's goal is to give each of these items a unique identity, location and authenticity it can share, creating a boundless Internet of Things.
The insider's recent sell-off raises questions about the company's current valuation and future prospects. On the day of the insider's recent sell, shares of Impinj Inc were trading at $70 apiece, giving the company a market cap of $1.694 billion.
The insider transaction history for Impinj Inc shows a clear trend of more sells than buys over the past year. There have been 13 insider buys in total, compared to 90 insider sells. This could indicate that insiders believe the stock is overvalued at its current price.
According to the GuruFocus Value, which is an intrinsic value estimate developed by GuruFocus based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Impinj Inc has a GF Value of $103.52. With a price of $70, the stock has a price-to-GF-Value ratio of 0.68. This suggests that the stock is a possible value trap, and investors should think twice before buying.
The insider's recent sell-off, combined with the company's high price-to-GF-Value ratio, suggests that the stock may be overvalued. Investors should carefully consider these factors before deciding whether to buy shares of Impinj Inc.
As always, it's important to do your own research and consider multiple factors before making investment decisions. Insider transactions can provide valuable insights, but they are just one piece of the puzzle.
