Penguin Solutions Inc's stock fell by 14.71% after crossing below the 5-day SMA, despite the Nasdaq-100 showing slight gains of 0.09% and the S&P 500 declining by 0.33%.
The decline comes amid a strong earnings report where Penguin Solutions reported Q1 revenue of $343 million, exceeding expectations, and non-GAAP earnings per share of $0.49, surpassing the anticipated $0.44. This strong performance indicates robust profitability and growth potential, yet the stock's drop suggests sector rotation as investors may be reallocating their portfolios despite the positive earnings results.
This movement highlights the complexities of market dynamics, where even strong financial results can lead to stock price declines due to broader market trends or shifts in investor sentiment.
Wall Street analysts forecast PENG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PENG is 26.00 USD with a low forecast of 23.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
Wall Street analysts forecast PENG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PENG is 26.00 USD with a low forecast of 23.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 19.720
Low
23.00
Averages
26.00
High
30.00
Current: 19.720
Low
23.00
Averages
26.00
High
30.00
Rosenblatt
Kevin Cassidy
Buy
maintain
2025-12-31
Reason
Rosenblatt
Kevin Cassidy
Price Target
AI Analysis
2025-12-31
maintain
Buy
Reason
Rosenblatt analyst Kevin Cassidy forecasts Penguin Solutions to "deliver a beat-n-raise to estimates" when the company reports on January 6, based on memory demand and pricing increases given that Penguin's custom memory module business revenue is based on fixed value add premium to the current Flash and DRAM prices. Demand in the Enterprise networking, server and hyperscale markets should give good visibility through calendar 2026, adds the analyst, who keeps a Buy rating on Penguin shares.
Rosenblatt
Rosenblatt
Buy
upgrade
$27 -> $36
2025-10-01
Reason
Rosenblatt
Rosenblatt
Price Target
$27 -> $36
2025-10-01
upgrade
Buy
Reason
Rosenblatt raised the firm's price target on Penguin Solutions to $36 from $27 and keeps a Buy rating on the shares. Supported by stronger-than-anticipated memory demand and pricing, the firm expects Penguin to deliver a \"modest beat\" relative to consensus and its FY25 guidance, the analyst tells investors.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for PENG
Unlock Now
Needham
Nate Olmstead
Buy
maintain
$27 -> $30
2025-07-22
Reason
Needham
Nate Olmstead
Price Target
$27 -> $30
2025-07-22
maintain
Buy
Reason
Needham raised the firm's price target on Penguin Solutions to $30 from $27 and keeps a Buy rating on the shares. The firm came away from meetings with CFO Nate Olmstead with a better understanding of the relationship with SK Telecom, memory business expansion into the "AI tail" and Artesyn EoL, the analyst tells investors in a research note.
JPMorgan
Neutral
maintain
$21 -> $24
2025-07-17
Reason
JPMorgan
Price Target
$21 -> $24
2025-07-17
maintain
Neutral
Reason
JPMorgan raised the firm's price target on Penguin Solutions to $24 from $21 and keeps a Neutral rating on the shares. The firm adjusted price targets in hardware and networking, saying it expects upside to second half of 2025 estimates from "robust" cloud spending. However, underlying end market drivers for other customer verticals "remain a watchpoint" as they exhibit more sensitivity to the macro environment, the analyst tells investors in a research note.
About PENG
Penguin Solutions, Inc. is an end-to-end technology company. The Company’s Advanced Computing segment, under its Penguin Computing and Stratus brands, offers specialized platform solutions and services for artificial intelligence, high-performance computing, machine learning, advanced modeling and the Internet of things that span the continuum of edge, core and cloud. Its Integrated Memory segment, under its SMART Modular Technologies brand, provides high-performance and reliable integrated memory solutions through the design, development and advanced packaging of leading-edge to extended lifecycle products. Its Optimized LED segment, under its Cree LED brand, offers a broad portfolio of application-optimized LEDs focused on improving lumen density, intensity, efficacy, optical control and/or reliability. The Company’s LED products enable its customers to develop and market LED-based products for general lighting, video displays and specialty lighting applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
