Penguin Solutions (NASDAQ:PENG) Research Coverage Started at Bank of America

Bank of America assumed coverage on shares of Penguin Solutions (NASDAQ:PENG) in a research report report published on Friday, MarketBeat.com reports. The firm issued a buy rating and a $100.00 price target on the stock.

A number of other equities research analysts have also recently commented on the company. Wall Street Zen cut Penguin Solutions from a “strong-buy” rating to a “buy” rating in a research note on Sunday, July 26th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Penguin Solutions in a research report on Friday, October 2nd. The Goldman Sachs Group reaffirmed a “buy” rating and set a $85.00 target price on shares of Penguin Solutions in a research report on Wednesday. Zacks Research cut Penguin Solutions from a “strong-buy” rating to a “hold” rating in a report on Monday, September 7th. Finally, Rosenblatt Securities lifted their price target on shares of Penguin Solutions from $80.00 to $100.00 and gave the company a “buy” rating in a research report on Wednesday. Seven investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $87.50.

Penguin Solutions Stock Performance

Shares of Penguin Solutions stock opened at $76.28 on Friday. Penguin Solutions has a one year low of $16.04 and a one year high of $89.86. The firm has a market capitalization of $3.91 billion, a price-to-earnings ratio of 29.45 and a beta of 2.86. The business has a 50-day simple moving average of $55.17 and a 200 day simple moving average of $50.75. The company has a debt-to-equity ratio of 1.37, a current ratio of 1.88 and a quick ratio of 1.25.

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

Insider Activity

In other Penguin Solutions news, SVP Joseph Clark sold 1,327 shares of the business’s stock in a transaction that occurred on 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 directly owned 63,056 shares of the company’s stock, valued at approximately $3,623,828.32. The trade was a 2.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $50.58, for a total value of $202,320.00. Following the completion of the sale, the senior vice president directly owned 112,994 shares of the company’s stock, valued at approximately $5,715,236.52. This trade represents a 3.42% 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. 2.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of PENG. Global Retirement Partners LLC bought a new stake in Penguin Solutions during the second quarter worth $26,000. GAMMA Investing LLC lifted its stake in 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 in the last quarter. Allworth Financial LP bought a new position in Penguin Solutions during the 2nd quarter valued at $37,000. Nykredit A S bought a new position in Penguin Solutions during the 2nd quarter valued at $42,000. Finally, Polaris Financial Partners purchased a new position in Penguin Solutions during the 3rd quarter worth $50,000.

Key Headlines Impacting Penguin Solutions

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

• Positive Sentiment: Bank of America initiated coverage with a Buy rating and a $100 price target, implying substantial upside from the recent $76.30 share price. The firm valued Penguin at 18 times its projected 2028 earnings of $5.43 per share, citing expected demand for AI-related memory and infrastructure. Penguin Solutions initiated with a Buy from Bank of America on AI memory demand
• Positive Sentiment: Quarterly results exceeded expectations: Penguin reported adjusted earnings of $1.00 per share versus the $0.77 consensus estimate and revenue of approximately $566.7 million versus expectations of $521.0 million. Earnings also rose sharply from $0.11 per share in the comparable prior-year period. Penguin Solutions Releases Quarterly Earnings Results
• Positive Sentiment: Management raised its 2027 sales outlook after a record quarter and provided fiscal 2027 earnings guidance of $3.75 to $5.15 per share, reinforcing expectations for continued growth. Penguin Solutions lifts 2027 sales outlook after record quarter
• Positive Sentiment: Needham raised its price target to $85 from $80, while the earnings beat prompted reports of a sharp rally and renewed discussion that the shares may remain undervalued relative to growth prospects. Needham raises target for Penguin Solutions stock
• Neutral Sentiment: Traders purchased a large volume of PENG call options, indicating increased speculative bullish interest, although options activity does not necessarily reflect long-term fundamentals. Traders Purchase Large Volume of Call Options on Penguin Solutions

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.