Shares of Penguin Solutions, Inc. (NASDAQ:PENG) have received a consensus recommendation of “Moderate Buy” from ten ratings firms, according to data from Marketbeat.com. This assessment is based on the evaluations from multiple equities research analysts, with three analysts suggesting a hold rating while seven have issued a buy rating for the company.
The average 12-month price target for Penguin Solutions among these analysts stands at $28.00. Several brokerages have recently provided insights on the stock. Notably, JMP Securities reaffirmed a “market outperform” rating and set a price objective of $26.00 in a report published on October 8, 2023. Additionally, Weiss Ratings upgraded the company from a “sell (d-)” to a “hold (c-)” rating on October 25, 2023.
Zacks Research also made headlines when it downgraded Penguin Solutions from a “strong-buy” rating to a “hold” on September 8, 2023. On the other hand, Wall Street Zen boosted its rating from hold to buy on November 28, 2023. Lastly, Rosenblatt Securities maintained its “buy” rating, setting a price target of $30.00 on October 14, 2023.
Institutional Investment Activity
Recent changes in holdings by institutional investors reflect growing interest in Penguin Solutions. Vanguard Group Inc. increased its stake by 0.4% during the third quarter, now owning approximately 6,592,564 shares valued at $173.25 million after acquiring an additional 25,804 shares. Meanwhile, Dimensional Fund Advisors LP entered a new position in the company during the same quarter, valued at around $60.26 million.
Other institutional investors have also been active. AllianceBernstein L.P. purchased a new stake worth about $28.92 million in the first quarter, while American Century Companies Inc. expanded its holdings by 35.3% in the third quarter, now owning 1,294,279 shares valued at $34.01 million. Additionally, Paradigm Capital Management Inc. NY increased its position by 2.5% during the second quarter, owning 1,153,100 shares valued at $22.84 million.
Market Performance and Financial Results
On October 7, 2023, Penguin Solutions reported its quarterly earnings, revealing earnings per share (EPS) of $0.43. This figure surpassed analysts’ consensus estimates of $0.37 by $0.06. The company achieved a revenue total of $337.92 million, slightly below the expected $342.11 million.
The company’s financial metrics indicate a net margin of 1.82% and a return on equity of 14.45%. Looking ahead, Penguin Solutions has set its fiscal year 2026 guidance at an EPS range of $1.75 to $2.25. Analysts anticipate that the company will post an EPS of $1.05 for the current fiscal year.
As for stock performance, shares of Penguin Solutions opened at $20.74 on the reporting day. Over the past year, the stock has fluctuated, reaching a low of $14.20 and a high of $29.80. The company currently has a market capitalization of $1.10 billion, a price-to-earnings (PE) ratio of 71.52, and a beta of 2.20.
Penguin Solutions is engaged in the design and development of enterprise solutions globally, operating through three primary segments: Advanced Computing, Integrated Memory, and Optimized LED. The company provides a range of products including dynamic random access memory modules and solid-state storage solutions, catering to sectors such as networking, telecommunications, data analytics, and artificial intelligence.