Sylebra Capital Ltd Continues Adding to Stake in Impinj Inc
On August 15, 2023, Sylebra Capital Ltd (Trades, Portfolio), a Hong Kong-based investment firm, increased its holdings in Impinj Inc (NASDAQ:PI), a leading provider of wireless connectivity solutions. This article will delve into the details of the transaction, the investment philosophy of Sylebra Capital Ltd (Trades, Portfolio), and the financial health and performance of Impinj Inc.
About Sylebra Capital Ltd (Trades, Portfolio)
Sylebra Capital Ltd (Trades, Portfolio) is an investment firm located at 28 Hennessy Road, 20th Floor, Hong Kong. The firm manages a portfolio of 22 stocks, with a total equity of $2.44 billion. Its top holdings include Advanced Micro Devices Inc (NASDAQ:AMD), Impinj Inc (NASDAQ:PI), RingCentral Inc (NYSE:RNG), Elastic NV (NYSE:ESTC), and PureCycle Technologies Inc (NASDAQ:PCT). The firm's investments are primarily concentrated in the Technology and Industrials sectors.
Transaction Overview
The transaction saw Sylebra Capital Ltd (Trades, Portfolio) add 225,182 shares of Impinj Inc, representing a 7.09% change in their holdings. The shares were acquired at a price of $61.29 per share, bringing the firm's total holdings in Impinj Inc to 3,400,679 shares. This transaction had a 0.56% impact on the firm's portfolio and increased its position in Impinj Inc to 8.5%. As a result, Sylebra Capital Ltd (Trades, Portfolio) now holds 12.66% of Impinj Inc's total shares.
Impinj Inc: Company Profile and Financial Health
Impinj Inc, listed under the symbol PI, is a US-based company that operates a platform enabling wireless connectivity to everyday items. The company's platform includes endpoint integrated circuits (ICs) and a connectivity layer that provides power to and communicates bidirectionally with endpoint ICs. The company's key revenue is derived from operations in the Asia Pacific region. Impinj Inc went public on July 21, 2016.
As of August 18, 2023, Impinj Inc has a market cap of $1.54 billion and a current stock price of $57.37. The company's GF Score is 77/100, indicating fair outperformance potential. However, the company's financial strength and profitability rank are both 4/10, suggesting room for improvement. The company's growth rank is 7/10, indicating a decent growth trajectory.
Impinj Inc's Performance and Predictability
Impinj Inc's operating margin growth is 8.10%, and its revenue growth over the past three years is 13.00%. The company's GF Value Rank is 8/10, and its momentum rank is 7/10. However, the company's interest coverage is 0.00 (at loss), and its Altman Z score is 2.78, indicating potential financial distress.
Impinj Inc's stock performance has been volatile, with a year-to-date price change ratio of -47.97%. However, since its Initial Public Offering (IPO), the stock has gained 218.72%. The company's RSI 14 Day is 26.94, suggesting that the stock is currently oversold.
Conclusion
The recent transaction by Sylebra Capital Ltd (Trades, Portfolio) reflects the firm's confidence in Impinj Inc's potential despite its current financial challenges. The addition of Impinj Inc shares to Sylebra Capital Ltd (Trades, Portfolio)'s portfolio could provide diversification benefits and potential growth opportunities. However, investors should carefully consider the company's financial health and market conditions before making investment decisions.
This article first appeared on GuruFocus.
