Penguin Solutions (NASDAQ:PENG) Price Target Raised to $85.00

Penguin Solutions (NASDAQ:PENG) had its target price lifted by Needham & Company LLC from $80.00 to $85.00 in a research report report published on Wednesday, Marketbeat reports. The firm currently has a buy rating on the stock.

A number of other research firms also recently weighed in on PENG. Stifel Nicolaus upped their target price on Penguin Solutions from $66.00 to $75.00 and gave the stock a “buy” rating in a research report on Wednesday, July 8th. Rosenblatt Securities reiterated a “buy” rating and set a $80.00 price target on shares of Penguin Solutions in a research report on Friday, October 2nd. Citizens Jmp boosted their price objective on Penguin Solutions from $65.00 to $85.00 and gave the stock a “market outperform” rating in a research note on Wednesday, July 8th. Zacks Research lowered Penguin Solutions from a “strong-buy” rating to a “hold” rating in a report on Monday, September 7th. Finally, Citigroup reaffirmed an “outperform” rating on shares of Penguin Solutions in a research note on Wednesday, July 8th. Seven analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $87.50.

Penguin Solutions Stock Up 6.6%

PENG stock opened at $76.28 on Wednesday. Penguin Solutions has a 52 week low of $16.04 and a 52 week high of $89.86. The company has a market capitalization of $3.91 billion, a price-to-earnings ratio of 29.45 and a beta of 2.86. The firm’s 50-day moving average is $55.17 and its two-hundred day moving average is $50.52. The company has a current ratio of 1.88, a quick ratio of 1.10 and a debt-to-equity ratio of 1.37.

Penguin Solutions (NASDAQ:PENG) last posted its quarterly earnings data on Tuesday, October 6th. The company reported $1.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.23. Penguin Solutions had a net margin of 10.43% and a return on equity of 36.71%. The business had revenue of $566.68 million during the quarter, compared to analysts’ expectations of $520.99 million. During the same period last year, the firm posted $0.11 earnings per share. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. On average, analysts forecast that Penguin Solutions will post 2.87 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Penguin Solutions news, SVP Anne Kuykendall sold 4,000 shares of Penguin Solutions stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $50.58, for a total value of $202,320.00. Following the transaction, the senior vice president owned 112,994 shares in the company, valued at approximately $5,715,236.52. The trade was a 3.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 1,327 shares of the company’s stock in a transaction on Thursday, July 23rd. The shares were sold at an average price of $57.47, for a total value of $76,262.69. Following the completion of the transaction, the senior vice president directly owned 63,056 shares in the company, valued at $3,623,828.32. This represents a 2.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Penguin Solutions

Institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in Penguin Solutions during the second quarter valued at about $581,658,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Penguin Solutions in the second quarter worth approximately $150,192,000. Paradigm Capital Management Inc. NY acquired a new stake in shares of Penguin Solutions during the second quarter valued at approximately $52,135,000. William Blair Investment Management LLC acquired a new stake in shares of Penguin Solutions during the second quarter valued at approximately $34,207,000. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Penguin Solutions in the 2nd quarter valued at approximately $22,503,000.

Penguin Solutions News Roundup

Here are the key news stories impacting Penguin Solutions this week:

• Positive Sentiment: Bank of America initiated coverage with a Buy rating and a $100 price target, implying substantial upside from the recent $76.30 share price. The firm valued Penguin at 18 times its projected 2028 earnings of $5.43 per share, citing expected demand for AI-related memory and infrastructure. Penguin Solutions initiated with a Buy from Bank of America on AI memory demand
• Positive Sentiment: Quarterly results exceeded expectations: Penguin reported adjusted earnings of $1.00 per share versus the $0.77 consensus estimate and revenue of approximately $566.7 million versus expectations of $521.0 million. Earnings also rose sharply from $0.11 per share in the comparable prior-year period. Penguin Solutions Releases Quarterly Earnings Results
• Positive Sentiment: Management raised its 2027 sales outlook after a record quarter and provided fiscal 2027 earnings guidance of $3.75 to $5.15 per share, reinforcing expectations for continued growth. Penguin Solutions lifts 2027 sales outlook after record quarter
• Positive Sentiment: Needham raised its price target to $85 from $80, while the earnings beat prompted reports of a sharp rally and renewed discussion that the shares may remain undervalued relative to growth prospects. Needham raises target for Penguin Solutions stock
• Neutral Sentiment: Traders purchased a large volume of PENG call options, indicating increased speculative bullish interest, although options activity does not necessarily reflect long-term fundamentals. Traders Purchase Large Volume of Call Options on Penguin Solutions

Penguin Solutions Company Profile

Penguin Solutions, Inc provides intelligent infrastructure solutions for artificial intelligence, high-performance computing, enterprise data centers and other demanding technology environments. The company combines specialized hardware, software and professional services to help organizations design, deploy and manage complex computing infrastructure.

Its offerings include AI and high-performance computing systems, servers, storage and networking infrastructure, as well as software and services for infrastructure management, optimization and support.