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

Shares of Penguin Solutions, Inc. (NASDAQ:PENG) have been given a consensus rating of “Moderate Buy” by the ten brokerages that are presently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation, seven have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $87.50.

A number of brokerages have recently issued reports on PENG. Stifel Nicolaus raised their price target on shares of Penguin Solutions from $75.00 to $85.00 and gave the company a “buy” rating in a report on Wednesday, October 7th. Zacks Research upgraded shares of Penguin Solutions from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 9th. Deutsche Bank Aktiengesellschaft set a $100.00 target price on shares of Penguin Solutions in a research report on Friday, October 9th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $85.00 target price on shares of Penguin Solutions in a research report on Wednesday, October 7th. Finally, Needham & Company LLC boosted their target price on shares of Penguin Solutions from $80.00 to $85.00 and gave the company a “buy” rating in a research note on Wednesday, October 7th.

Penguin Solutions Stock Performance

Shares of PENG stock opened at $53.41 on Friday. The company has a market capitalization of $3.22 billion, a price-to-earnings ratio of 20.62, a price-to-earnings-growth ratio of 0.61 and a beta of 2.86. The company has a debt-to-equity ratio of 1.37, a quick ratio of 1.25 and a current ratio of 1.88. Penguin Solutions has a one year low of $16.04 and a one year high of $89.86. The company’s 50-day moving average is $56.04 and its 200 day moving average is $53.59.

Penguin Solutions (NASDAQ:PENG) last announced its quarterly earnings results on Tuesday, October 6th. The company reported $1.00 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.77 by $0.23. Penguin Solutions had a return on equity of 36.71% and a net margin of 10.43%. The firm had revenue of $566.68 million for the quarter, compared to the consensus estimate of $520.99 million. During the same period in the prior year, the company posted $0.11 earnings per share. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. Sell-side analysts expect that Penguin Solutions will post 4.05 EPS for the current fiscal year.

Trending Headlines about Penguin Solutions

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?

Insider Activity at Penguin Solutions

In related news, SVP Anne Kuykendall sold 738 shares of Penguin Solutions stock in a transaction on Thursday, October 22nd. The stock was sold at an average price of $55.08, for a total value of $40,649.04. Following the completion of the sale, the senior vice president owned 141,988 shares of the company’s stock, valued at $7,820,699.04. The trade was a 0.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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 owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of PENG. Signaturefd LLC boosted its stake in shares of Penguin Solutions by 25.3% during the 3rd quarter. Signaturefd LLC now owns 1,081 shares of the company’s stock worth $59,000 after acquiring an additional 218 shares during the last quarter. Global Retirement Partners LLC bought a new stake in shares of Penguin Solutions during the 2nd quarter valued at $26,000. GAMMA Investing LLC grew its position in shares of Penguin Solutions by 9.1% during the 3rd quarter. GAMMA Investing LLC now owns 5,527 shares of the company’s stock valued at $302,000 after acquiring an additional 462 shares during the period. Allworth Financial LP purchased a new stake in shares of Penguin Solutions in the 2nd quarter worth $37,000. Finally, Yousif Capital Management LLC increased its stake in shares of Penguin Solutions by 4.4% in the 3rd quarter. Yousif Capital Management LLC now owns 12,935 shares of the company’s stock worth $707,000 after purchasing an additional 546 shares in the last quarter.

About Penguin Solutions

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.