Penguin Solutions Target of Unusually Large Options Trading (NASDAQ:PENG)

Penguin Solutions, Inc. (NASDAQ:PENG) saw unusually large options trading activity on Wednesday. Stock investors bought 2,578 call options on the stock. This represents an increase of approximately 94% compared to the average daily volume of 1,329 call options.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on PENG. Weiss Ratings raised Penguin Solutions from a “sell (d-)” rating to a “hold (c-)” rating in a research note on Saturday, October 25th. Wall Street Zen upgraded Penguin Solutions from a “hold” rating to a “buy” rating in a report on Friday, November 28th. JMP Securities reaffirmed a “market outperform” rating and issued a $26.00 target price on shares of Penguin Solutions in a research report on Wednesday, October 8th. Rosenblatt Securities reissued a “buy” rating and set a $30.00 price target on shares of Penguin Solutions in a research report on Wednesday. Finally, Stifel Nicolaus raised their price objective on Penguin Solutions from $27.00 to $31.00 and gave the company a “buy” rating in a research report on Monday, October 6th. Seven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $28.00.

Penguin Solutions News Summary

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

• Positive Sentiment: Q1 non‑GAAP EPS of $0.49 beat consensus, supporting the beat narrative that helped lift sentiment. Article Title
• Positive Sentiment: Market headlines and trading reacted strongly — shares rallied after the results were viewed as topping expectations. Article Title
• Positive Sentiment: Rosenblatt reaffirmed a “buy” rating and set a $30 price target (~39% above the recent ~$21.55 level), adding an analyst-driven upside case. Article Title
• Positive Sentiment: Management reiterated FY‑26 EPS guidance in a 1.75–2.25 range (midpoint ≈ $2.00) and signaled a stronger memory/business outlook and ~6% net sales growth expectations — a key fundamental positive if memory demand continues. Article Title
• Neutral Sentiment: The company provided a wide revenue guide of $1.3B–$1.6B (vs. consensus ≈ $1.5B) — leaves room for upside or downside depending on execution and memory market direction. Article Title
• Neutral Sentiment: Company released the earnings slide deck and full call transcript for more detail on inventory trends and segment performance — useful for modeling but not an immediate catalyst by itself. Article Title
• Negative Sentiment: Reported net sales of ~$343M were roughly flat and slightly under some street estimates (~$345M), a modest miss that tempers the EPS beat story. Article Title

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in shares of Penguin Solutions by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 6,592,564 shares of the company’s stock worth $173,253,000 after acquiring an additional 25,804 shares during the period. Dimensional Fund Advisors LP acquired a new position in shares of Penguin Solutions during the third quarter worth $60,264,000. Alliancebernstein L.P. bought a new stake in shares of Penguin Solutions in the 1st quarter valued at about $28,919,000. American Century Companies Inc. boosted its holdings in Penguin Solutions by 35.3% in the third quarter. American Century Companies Inc. now owns 1,294,279 shares of the company’s stock valued at $34,014,000 after acquiring an additional 337,564 shares during the last quarter. Finally, Paradigm Capital Management Inc. NY increased its position in shares of Penguin Solutions by 2.5% during the second quarter. Paradigm Capital Management Inc. NY now owns 1,153,100 shares of the company’s stock worth $22,843,000 after buying an additional 27,900 shares during the period.

Penguin Solutions Stock Performance

Shares of NASDAQ:PENG traded down $1.49 on Wednesday, reaching $20.06. 1,110,945 shares of the company’s stock were exchanged, compared to its average volume of 1,308,217. Penguin Solutions has a twelve month low of $14.20 and a twelve month high of $29.80. The company has a fifty day moving average of $20.45 and a 200-day moving average of $22.72. The company has a market capitalization of $1.05 billion, a price-to-earnings ratio of 69.40 and a beta of 2.23. The company has a current ratio of 2.25, a quick ratio of 1.71 and a debt-to-equity ratio of 1.09.

Penguin Solutions (NASDAQ:PENG) last issued its quarterly earnings results on Tuesday, January 6th. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.08. The business had revenue of $343.07 million during the quarter, compared to analysts’ expectations of $345.08 million. Penguin Solutions had a return on equity of 14.45% and a net margin of 1.82%.Penguin Solutions has set its FY 2026 guidance at 1.750-2.250 EPS. On average, research analysts predict that Penguin Solutions will post 1.05 EPS for the current fiscal year.

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.