Penguin Solutions (NASDAQ:PENG) Shares Gap Up Following Strong Earnings

Penguin Solutions, Inc. (NASDAQ:PENG)’s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $21.55, but opened at $23.66. Penguin Solutions shares last traded at $19.4070, with a volume of 1,460,520 shares.

The company reported $0.49 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.08. The firm had revenue of $343.07 million for the quarter, compared to the consensus estimate of $345.08 million. Penguin Solutions had a return on equity of 16.01% and a net margin of 1.82%.Penguin Solutions has set its FY 2026 guidance at 1.750-2.250 EPS.

Wall Street Analysts Forecast Growth

PENG has been the subject of several research analyst reports. JMP Securities reaffirmed a “market outperform” rating and set a $26.00 price target on shares of Penguin Solutions in a research report on Wednesday, October 8th. Weiss Ratings raised shares of Penguin Solutions from a “sell (d-)” rating to a “hold (c-)” rating in a research note on Saturday, October 25th. Rosenblatt Securities restated a “buy” rating and set a $30.00 price objective on shares of Penguin Solutions in a report on Wednesday. Wall Street Zen raised Penguin Solutions from a “hold” rating to a “buy” rating in a research report on Friday, November 28th. Finally, Stifel Nicolaus boosted their price target on Penguin Solutions from $27.00 to $31.00 and gave the company a “buy” rating in a research report on Monday, October 6th. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $28.71.

Hedge Funds Weigh In On Penguin Solutions

Several hedge funds and other institutional investors have recently made changes to their positions in PENG. Royal Bank of Canada acquired a new stake in Penguin Solutions in the 1st quarter valued at $7,250,000. Amundi purchased a new stake in shares of Penguin Solutions in the first quarter worth about $373,000. AQR Capital Management LLC purchased a new stake in shares of Penguin Solutions in the first quarter worth about $1,076,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in shares of Penguin Solutions in the first quarter valued at about $538,000. Finally, Goldman Sachs Group Inc. purchased a new stake in shares of Penguin Solutions during the 1st quarter valued at about $3,259,000.

Penguin Solutions Trading Up 6.2%

The firm has a fifty day moving average of $20.32 and a 200 day moving average of $22.67. The firm has a market capitalization of $1.04 billion, a PE ratio of 85.78 and a beta of 2.23. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.71 and a current ratio of 2.33.

Penguin Solutions Company Profile

Penguin Solutions, Inc engages in the designing and development of enterprise solutions worldwide. It operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers dynamic random access memory modules, solid-state and flash storage, and other advanced integrated memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services.