Deep Dive Into Penguin Solutions Stock: Analyst Perspectives (6 Ratings)

In the preceding three months, 6 analysts have released ratings for Penguin Solutions PENG, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated Penguin Solutions and provided 12-month price targets. The average target is $24.17, accompanied by a high estimate of $27.00 and a low estimate of $21.00. A decline of 20.1% from the prior average price target is evident in the current average.

Investigating Analyst Ratings: An Elaborate Study

The perception of Penguin Solutions by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Penguin Solutions. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Penguin Solutions compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Penguin Solutions's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Penguin Solutions's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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All You Need to Know About Penguin Solutions

Penguin Solutions Inc is an end-to-end technology company engaged in Intelligent Platform Solutions, Integrated Memory, and Optimized LED business. Its product include Servers, software, OCP HPC & AI system, Racks and Edge. Servers include AMD-based Serves, Intel-based Servers, etc. Software products include Scyld ClusterWare, Scyld Cloud Central, etc. OCP HPC & AI Systems includes OCP Servers & Storage and etc.

Penguin Solutions: A Financial Overview

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Decline in Revenue: Over the 3 months period, Penguin Solutions faced challenges, resulting in a decline of approximately -1.74% in revenue growth as of 31 August, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -7.89%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Penguin Solutions's ROE excels beyond industry benchmarks, reaching -6.03%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Penguin Solutions's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -1.63%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.83, caution is advised due to increased financial risk.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.