Power Solutions International (NASDAQ:PSIX) Shares Gap Down – Here’s Why

Power Solutions International, Inc. (NASDAQ:PSIX) gapped down before the market opened on Tuesday . The stock had previously closed at $62.45, but opened at $41.10. Power Solutions International shares last traded at $39.5930, with a volume of 1,784,779 shares changing hands.

Power Solutions International News Summary

Here are the key news stories impacting Power Solutions International this week:

• Positive Sentiment: Power Solutions International reported first-quarter 2026 revenue of $128.6 million and diluted EPS of $0.32, showing the business remained profitable despite the selloff. Power Solutions International Announces First Quarter 2026 Financial Results
• Neutral Sentiment: Several law firms, including Rosen, Faruqi & Faruqi, the Schall Law Firm, and others, reminded investors about the May 19 lead-plaintiff deadline in the pending securities class action, keeping legal overhang in focus. PSIX SHAREHOLDER RIGHTS ALERT
• Neutral Sentiment: A separate investor alert from Portnoy Law Firm said it had opened an investigation into possible securities fraud, adding to the growing list of legal notices around PSIX. Power Solutions International, Inc. Investigated by the Portnoy Law Firm
• Negative Sentiment: The main drag appears to be the Q1 update, which showed net sales down year over year, net income falling sharply, and gross margin contracting due to elevated production costs and an unfavorable mix. PSIX plunges 52% after Q1 profit drop and margin compression spook investors

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on PSIX. Loop Capital set a $107.00 price target on Power Solutions International in a research report on Wednesday, March 4th. Jefferies Financial Group decreased their target price on shares of Power Solutions International from $110.51 to $92.90 and set a “buy” rating on the stock in a research report on Tuesday, March 24th. Weiss Ratings raised shares of Power Solutions International from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, April 29th. Finally, Wall Street Zen downgraded shares of Power Solutions International from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. Two equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of $99.95.

Power Solutions International Trading Down 37.5%

The company has a current ratio of 3.15, a quick ratio of 1.77 and a debt-to-equity ratio of 0.54. The firm has a market capitalization of $899.07 million, a P/E ratio of 7.92 and a beta of 2.21. The firm has a 50-day moving average of $67.14 and a two-hundred day moving average of $69.91.

Power Solutions International (NASDAQ:PSIX) last released its earnings results on Monday, May 11th. The company reported $0.36 earnings per share (EPS) for the quarter. The firm had revenue of $128.59 million for the quarter. Power Solutions International had a return on equity of 81.58% and a net margin of 15.78%.

Hedge Funds Weigh In On Power Solutions International

Institutional investors have recently added to or reduced their stakes in the stock. Federated Hermes Inc. acquired a new stake in Power Solutions International in the third quarter valued at approximately $26,000. California State Teachers Retirement System acquired a new position in shares of Power Solutions International during the second quarter worth $26,000. Caitong International Asset Management Co. Ltd lifted its stake in shares of Power Solutions International by 2,672.7% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 305 shares of the company’s stock valued at $30,000 after acquiring an additional 294 shares during the last quarter. Global Assets Advisory LLC bought a new position in shares of Power Solutions International in the 1st quarter valued at $33,000. Finally, New York State Teachers Retirement System acquired a new stake in shares of Power Solutions International during the 1st quarter valued at $48,000. 22.28% of the stock is currently owned by institutional investors and hedge funds.

About Power Solutions International

Power Solutions International, Inc is a global designer and manufacturer of integrated powertrain solutions for commercial vehicle, industrial and military applications. Headquartered in Wood Dale, Illinois, the company develops and assembles advanced diesel engine and transmission packages under the Atlas® brand, combining proprietary engine technology with high-efficiency transmissions to deliver power-dense systems. These solutions are tailored for medium- and heavy-duty trucks, buses, construction equipment, generator sets and specialty vehicles.

In addition to complete powertrain systems, the company offers a broad range of component products including diesel engines, transmissions and aftertreatment modules.