Throughout the last three months, 5 analysts have evaluated Penguin Solutions ( PENG ) , offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have recently evaluated Penguin Solutions ( PENG ) and provided 12-month price targets. The average target is $23.6, accompanied by a high estimate of $27.00 and a low estimate of $21.00. This current average represents a 24.67% decrease from the previous average price target of $31.33.

Analyzing Analyst Ratings: A Detailed Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Penguin Solutions ( PENG ). The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Penguin Solutions ( PENG ). This insight gives a snapshot of analysts' perspectives on the current state of the company.

Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Penguin Solutions ( PENG ) compared to the broader market.

Price Targets: Gaining insights, analysts provide estimates for the future value of Penguin Solutions's ( PENG ) stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Penguin Solutions's ( PENG ) market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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All You Need to Know About Penguin Solutions

Penguin Solutions Inc ( PENG ) 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.

Financial Insights: Penguin Solutions

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Challenges: Penguin Solutions's ( PENG ) revenue growth over 3 months faced difficulties. As of 31 August, 2024, the company experienced a decline of approximately -1.74%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

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): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -6.03%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Penguin Solutions's ( PENG ) ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -1.63% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Penguin Solutions's ( PENG ) debt-to-equity ratio stands notably higher than the industry average, reaching 1.83. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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