Impinj stock soared Thursday after the chipmaker released quarterly results for the second quarter that had been delayed due to an internal investigation of an employee complaint, while other chip stocks recovered somewhat from Wednesday’s thrashing.
Impinj (IMPJ) said its audit committee’s probe found no “credible evidence” to support undescribed ethics allegations from a former employee. With the investigation complete, Impinj was able to report second-quarter results after the market close Wednesday. Revenue and earnings per share came in ahead of analyst expectations.
Shares of Impinj catapulted 33.2% higher to close at 25.01 on the stock market today.
Impinj’s news comes a day after a basket of chip stocks fell Wednesday, led by Micron Technology (MU), amid signs that memory-chip markets are weakening. That caused the Philadelphia Semiconductor Index, known as SOX, to gap down 1.2% on Wednesday. The SOX index on Thursday closed up 1.2%.
Micron Cut To Neutral
The drop in chip stocks Wednesday came as Goldman Sachs analyst Mark Delaney cut his rating on Micron to neutral from buy. He also lowered his price target on the stock to 50 from 68, citing “weaker fundamentals” in the memory chip market. Micron stock, which sank 4.3% Wednesday, on Thursday closed at 43.62, rising 4.5%.
The upward trend in chip stocks Thursday comes as coverage was initiated on Advanced Micro Devices (AMD). FBN Securities analyst Shebly Seyrafi initiated coverage on AMD with an outperform rating and price target of 40, saying the company currently has a strong new product cycle. AMD had been up as much as 6% on Thursday, hitting a 12-year high. But the stock reversed during afternoon trading, falling 5.4% to close at 30.48.
After the market close Wednesday, Impinj reported an adjusted loss of 19 cents per share. The consensus estimate was for a 28-cent loss. Revenue fell 16% from the year-ago quarter to $28.5 million but that topped estimates of $27.3 million.
Impinj provides radio frequency identification products used for identifying, locating and authenticating billions of everyday items. Among them, the chips track bags moving around airports.
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