Penguin Solutions (NASDAQ:PENG) Stock Price Expected to Rise, Needham & Company LLC Analyst Says

Penguin Solutions (NASDAQ:PENG) had its target price boosted by equities researchers at Needham & Company LLC from $80.00 to $85.00 in a research note issued on Wednesday, Benzinga reports. The brokerage currently has a “buy” rating on the stock. Needham & Company LLC’s price objective suggests a potential upside of 32.38% from the stock’s current price.

Several other research analysts have also recently issued reports on the company. Barclays cut Penguin Solutions from an “equal weight” rating to an “underweight” rating and set a $40.00 price target for the company. in a research note on Monday, July 20th. Rosenblatt Securities reiterated a “buy” rating and issued a $80.00 target price on shares of Penguin Solutions in a research report on Friday, October 2nd. Wall Street Zen cut shares of Penguin Solutions from a “strong-buy” rating to a “buy” rating in a research note on Sunday, July 26th. Citizens Jmp boosted their price target on shares of Penguin Solutions from $65.00 to $85.00 and gave the stock a “market outperform” rating in a research report on Wednesday, July 8th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Penguin Solutions in a research note on Friday. Six investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $65.00.

Penguin Solutions Price Performance

NASDAQ PENG opened at $64.21 on Wednesday. Penguin Solutions has a 52 week low of $16.04 and a 52 week high of $89.86. The company has a current ratio of 1.54, a quick ratio of 1.10 and a debt-to-equity ratio of 0.65. The stock has a market cap of $3.29 billion, a price-to-earnings ratio of 45.54 and a beta of 2.86. The company has a 50-day moving average price of $53.71 and a two-hundred day moving average price of $49.57.

Penguin Solutions (NASDAQ:PENG) last released its quarterly earnings results on Tuesday, October 6th. The company reported $1.00 earnings per share for the quarter, beating analysts’ consensus estimates of $0.77 by $0.23. The company had revenue of $566.68 million for the quarter, compared to analysts’ expectations of $520.99 million. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.During the same quarter in the previous year, the company posted $0.11 earnings per share. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. Analysts forecast that Penguin Solutions will post 2.08 EPS for the current year.

Insider Activity

In related news, SVP Anne Kuykendall sold 4,000 shares of Penguin Solutions stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $50.58, for a total transaction of $202,320.00. Following the transaction, the senior vice president directly owned 112,994 shares of the company’s stock, valued at $5,715,236.52. The trade was a 3.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 1,327 shares of the business’s stock in a transaction dated Thursday, July 23rd. The stock was sold at an average price of $57.47, for a total transaction of $76,262.69. Following the completion of the sale, the senior vice president owned 63,056 shares in the company, valued at approximately $3,623,828.32. This trade represents a 2.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.90% of the company’s stock.

Institutional Trading of Penguin Solutions

A number of large investors have recently added to or reduced their stakes in PENG. Global Retirement Partners LLC acquired a new position in Penguin Solutions in the second quarter worth approximately $26,000. Allworth Financial LP acquired a new stake in shares of Penguin Solutions during the 2nd quarter valued at $37,000. Nykredit A S bought a new stake in shares of Penguin Solutions during the 2nd quarter worth $42,000. Polaris Financial Partners acquired a new position in shares of Penguin Solutions in the 3rd quarter worth $50,000. Finally, Public Employees Retirement System of Ohio acquired a new position in shares of Penguin Solutions in the 2nd quarter worth $74,000.

Key Stories Impacting Penguin Solutions

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

• Positive Sentiment: Penguin reported fiscal Q4 adjusted EPS of $1.00, well above the roughly $0.77 consensus estimate, while revenue reached $566.7 million versus expectations of about $521 million. EPS increased substantially from $0.11 in the year-ago quarter. Why Penguin Solutions Shares Are Trading Higher
• Positive Sentiment: Quarterly net income reportedly jumped 888% to $93 million, and revenue grew 68% to a record level, highlighting strong demand for AI-related data-center infrastructure and memory solutions. Penguin Solutions Profit Jumps on AI Demand
• Positive Sentiment: Management raised fiscal 2027 guidance to EPS of $3.75–$5.15 and revenue of $2.3–$2.6 billion, both above analyst expectations of approximately $3.27 EPS and $2.2 billion in revenue. The outlook is supporting the stock’s increase. Penguin Solutions Raises Fiscal 2027 Guidance
• Positive Sentiment: Stephen Cumming was appointed senior vice president and chief financial officer, giving Penguin a new finance leader as it seeks to support accelerated growth. Penguin Solutions Appoints Stephen Cumming as CFO

About Penguin Solutions

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.