Shares of Penguin Solutions, Inc. (NASDAQ:PENG) have received a consensus recommendation of “Moderate Buy” from analysts covering the stock, according to a report by Marketbeat.com. Out of ten ratings firms, three have assigned a hold rating while seven have issued buy ratings. The average 12-month price target among these analysts stands at $28.00.
Several brokerages have recently updated their outlook on Penguin Solutions. On October 8, 2023, JMP Securities reiterated a “market outperform” rating, setting a price target of $26.00. In contrast, Weiss Ratings upgraded the company from a “sell (d-)” to a “hold (c-)” rating in a report dated October 25, 2023. Zacks Research adjusted its rating from “strong-buy” to “hold” on September 8, 2023. Meanwhile, Wall Street Zen elevated its rating from “hold” to “buy” on November 28, 2023. Lastly, Rosenblatt Securities reaffirmed a “buy” rating with a price target of $30.00 on October 14, 2023.
Institutional Investors Increase Holdings
In recent months, several hedge funds and institutional investors have adjusted their stakes in Penguin Solutions. Vanguard Group Inc. increased its holdings by 0.4% during the third quarter, now owning 6,592,564 shares valued at approximately $173.25 million. Dimensional Fund Advisors LP acquired a new position worth around $60.26 million, while AllianceBernstein L.P. invested approximately $28.92 million during the first quarter.
Additionally, American Century Companies Inc. raised its stake by 35.3% in the same quarter, bringing its total to 1,294,279 shares valued at about $34.01 million. Paradigm Capital Management Inc. also increased its position by 2.5%, now holding 1,153,100 shares valued at approximately $22.84 million.
Stock Performance and Financial Results
On October 7, 2023, Penguin Solutions disclosed its quarterly earnings, reporting earnings per share (EPS) of $0.43, surpassing analysts’ expectations of $0.37 by $0.06. The company generated revenue of $337.92 million, slightly below the projected $342.11 million. Penguin Solutions recorded a net margin of 1.82% and a return on equity of 14.45%.
Currently, the company has set its fiscal year 2026 guidance at an EPS range of $1.75 to $2.25. Analysts anticipate Penguin Solutions will post an EPS of $1.05 for the current fiscal year.
As of October 8, 2023, shares of Penguin Solutions opened at $20.74. The stock has experienced a 1-year low of $14.20 and a high of $29.80. The company maintains a market capitalization of $1.10 billion and has a PE ratio of 71.52, alongside a beta of 2.20.
Penguin Solutions specializes in designing and developing enterprise solutions globally, with operations across three segments: Advanced Computing, Integrated Memory, and Optimized LED. The company provides advanced integrated memory solutions, including dynamic random access memory modules and solid-state storage, catering to sectors such as data analytics and artificial intelligence.
The recent positive ratings from analysts and the growing interest from institutional investors reflect a favorable outlook for Penguin Solutions as it continues to navigate the competitive technology landscape.
