Penguin Solutions, Inc. (NASDAQ:PENG) Stock Has Average Price Target of $87.50 According to Analysts

Penguin Solutions, Inc. (NASDAQ:PENG) has received an average rating of “Moderate Buy” from the ten analysts that are presently covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, one has issued a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $87.50.

A number of research firms have weighed in on PENG. Zacks Research upgraded shares of Penguin Solutions from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 9th. Weiss Ratings raised Penguin Solutions from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, October 16th. Needham & Company LLC boosted their price target on Penguin Solutions from $80.00 to $85.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th. Citizens Jmp increased their price objective on shares of Penguin Solutions from $65.00 to $85.00 and gave the company a “market outperform” rating in a report on Wednesday, July 8th. Finally, Deutsche Bank Aktiengesellschaft set a $100.00 target price on shares of Penguin Solutions in a research report on Friday, October 9th.

Insider Buying and Selling

In other Penguin Solutions news, SVP Anne Kuykendall sold 738 shares of the business’s stock in a transaction on Thursday, October 22nd. The shares were sold at an average price of $55.08, for a total value of $40,649.04. Following the sale, the senior vice president owned 141,988 shares in the company, valued at $7,820,699.04. The trade was a 0.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 2.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Penguin Solutions

Several institutional investors have recently added to or reduced their stakes in PENG. Signaturefd LLC boosted its position in shares of Penguin Solutions by 25.3% during the 3rd quarter. Signaturefd LLC now owns 1,081 shares of the company’s stock valued at $59,000 after acquiring an additional 218 shares during the last quarter. Sterling Capital Management LLC grew its holdings in shares of Penguin Solutions by 838.4% in the third quarter. Sterling Capital Management LLC now owns 1,661 shares of the company’s stock valued at $91,000 after purchasing an additional 1,484 shares in the last quarter. Yousif Capital Management LLC grew its holdings in shares of Penguin Solutions by 4.4% in the third quarter. Yousif Capital Management LLC now owns 12,935 shares of the company’s stock valued at $707,000 after purchasing an additional 546 shares in the last quarter. SBI Securities Co. Ltd. increased its position in Penguin Solutions by 56.5% in the third quarter. SBI Securities Co. Ltd. now owns 2,294 shares of the company’s stock worth $125,000 after purchasing an additional 828 shares during the last quarter. Finally, Revisor Wealth Management LLC increased its position in Penguin Solutions by 23.6% in the third quarter. Revisor Wealth Management LLC now owns 3,588 shares of the company’s stock worth $200,000 after purchasing an additional 686 shares during the last quarter.

Penguin Solutions News Summary

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

• Positive Sentiment: Analyst sentiment improved as Penguin Solutions’ consensus price target rose 15.06% to $87.19. The new target implies substantial potential upside from recent trading levels and reinforces the company’s favorable outlook. Penguin Solutions consensus price target increased 15.06% to $87.19
• Positive Sentiment: Recent coverage highlighted Penguin Solutions’ AI Factory Platform results as exceeding forecasts. The company’s exposure to AI memory, computing platforms and data-center infrastructure is strengthening the investment case as demand for specialized AI capacity grows. Penguin Solutions jumps as AI Factory Platform results beat forecasts
• Positive Sentiment: Penguin Solutions previously reported quarterly earnings of $1.00 per share, versus analyst expectations of $0.77, while revenue of approximately $566.7 million exceeded the $521.0 million consensus estimate. Earnings also rose sharply from $0.11 per share in the prior-year period, supporting the bullish view of the business. Semiconductors stocks Q3 earnings review: Penguin Solutions shines
• Neutral Sentiment: Senior Vice President Anne Kuykendall sold 738 shares for approximately $40,649 under a pre-arranged Rule 10b5-1 plan to cover tax withholding tied to vested equity awards. Because the sale reduced her holdings by only 0.52% and was not discretionary market timing, it is unlikely to materially change the investment thesis. Penguin Solutions SVP sells 738 shares
• Negative Sentiment: Valuation remains a risk after the stock’s substantial rally. GuruFocus characterized PENG as overvalued relative to its estimated fair value, while the shares have also traded well below their 52-week high, underscoring elevated volatility and the possibility of profit-taking. Is Penguin Solutions overvalued after its rally?

Penguin Solutions Stock Up 2.9%

PENG stock opened at $53.41 on Friday. The business’s 50-day moving average price is $56.04 and its 200-day moving average price is $53.59. The stock has a market cap of $3.22 billion, a P/E ratio of 20.62, a PEG ratio of 0.61 and a beta of 2.86. The company has a quick ratio of 1.25, a current ratio of 1.88 and a debt-to-equity ratio of 1.37. Penguin Solutions has a twelve month low of $16.04 and a twelve month high of $89.86.

Penguin Solutions (NASDAQ:PENG) last released its earnings results on Tuesday, October 6th. The company reported $1.00 earnings per share (EPS) for the quarter, topping 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 company had revenue of $566.68 million during the quarter, compared to analyst estimates of $520.99 million. During the same period in the prior year, the firm posted $0.11 EPS. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. On average, equities research analysts forecast that Penguin Solutions will post 4.05 EPS for the current year.

Penguin Solutions Company Profile

Penguin Solutions, Inc provides technology products and services for data center, cloud, artificial intelligence, high-performance computing, edge computing and embedded applications. The company designs and delivers memory products, computing platforms and integrated infrastructure intended to help organizations manage demanding workloads and deploy specialized technology environments.

Its offerings include memory modules and other memory-related products, high-performance computing systems, servers, storage and networking solutions, and software and services for infrastructure management.