Penguin Solutions (NASDAQ:PENG) Stock Picked Up by Analysts at Bank of America

Key Points

• Bank of America initiated coverage of Penguin Solutions with a “buy” rating and a $100 price target, implying approximately 39.7% upside from the reported $71.57 share price.
• Analyst sentiment is broadly positive: seven analysts rate the stock a Buy, two a Hold and one a Sell, producing a “Moderate Buy” consensus and an average price target of $87.50.
• Penguin Solutions exceeded quarterly expectations, reporting $1.00 in earnings per share versus a $0.77 consensus estimate and revenue of $566.68 million versus $520.99 million expected.

Bank of America started coverage on shares of Penguin Solutions (NASDAQ:PENG - Get Free Report) in a note issued to investors on Friday, Briefing.com reports. The firm set a "buy" rating and a $100.00 price target on the stock. Bank of America's price objective would indicate a potential upside of 39.72% from the company's current price.

A number of other analysts also recently weighed in on the stock. Citigroup reiterated an "outperform" rating on shares of Penguin Solutions in a research report on Wednesday, July 8th. Rosenblatt Securities boosted their target price on Penguin Solutions from $80.00 to $100.00 and gave the company a "buy" rating in a research note on Wednesday. Needham & Company LLC increased their price target on Penguin Solutions from $80.00 to $85.00 and gave the stock a "buy" rating in a report on Wednesday. Zacks Research lowered Penguin Solutions from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 7th. Finally, Wall Street Zen cut Penguin Solutions from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 26th. Seven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $87.50.

Penguin Solutions Stock Performance

Shares of NASDAQ:PENG opened at $71.57 on Friday. The company has a current ratio of 1.88, a quick ratio of 1.10 and a debt-to-equity ratio of 1.37. Penguin Solutions has a 1-year low of $16.04 and a 1-year high of $89.86. The stock has a market capitalization of $3.67 billion, a P/E ratio of 27.63 and a beta of 2.86. The business has a 50-day moving average price of $54.69 and a two-hundred day moving average price of $50.34.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last issued its quarterly earnings results on Tuesday, October 6th. The company reported $1.00 EPS for the quarter, topping the consensus estimate of $0.77 by $0.23. Penguin Solutions had a net margin of 10.43% and a return on equity of 36.71%. The company had revenue of $566.68 million during the quarter, compared to analysts' expectations of $520.99 million. During the same quarter in the previous year, the company earned $0.11 EPS. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. Equities analysts predict that Penguin Solutions will post 2.87 earnings per share for the current year.

Insider Transactions at Penguin Solutions

In other news, SVP Anne Kuykendall sold 4,000 shares of the firm's stock in a transaction dated 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 transaction, the senior vice president owned 112,994 shares in the company, valued at $5,715,236.52. This trade represents a 3.42% decrease in their position. The sale 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 Penguin Solutions stock in a transaction dated Thursday, July 23rd. The shares were sold at an average price of $57.47, for a total value of $76,262.69. Following the completion of the sale, the senior vice president directly owned 63,056 shares in the company, valued at approximately $3,623,828.32. This represents a 2.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Penguin Solutions

A number of institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Penguin Solutions in the 2nd quarter valued at about $581,658,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in Penguin Solutions during the second quarter worth about $150,192,000. Paradigm Capital Management Inc. NY acquired a new position in Penguin Solutions during the second quarter worth approximately $52,135,000. William Blair Investment Management LLC bought a new stake in Penguin Solutions in the second quarter valued at approximately $34,207,000. Finally, Bank of New York Mellon Corp bought a new stake in Penguin Solutions in the second quarter valued at approximately $22,503,000.

Penguin Solutions Company Profile

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.

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