Penumbra Inc Surpasses Analyst Target Price as Shares Rise
Recently, shares of Penumbra Inc (Symbol: PEN) have surged past the average analyst 12-month target price of $290.29, currently trading at $298.25 per share. When a stock hits the target set by analysts, they typically react in one of two ways: either downgrade the valuation or adjust their target price higher. Their reactions may also hinge on fundamental business developments that contribute to the stock’s price increase. If the company’s outlook seems positive, it could trigger a reassessment of the target price.
Analyst Target Price and Variability
The average target for Penumbra Inc is derived from 17 different analysts within the Zacks coverage universe. However, this average represents a range of perspectives; some analysts have projections below the average, with one target as low as $14.00, while another analyst has set a target high of $340.00. This gives a standard deviation of $75.255, highlighting the varied opinions among analysts.
Investor Considerations Following Price Movement
The purpose of analyzing the average PEN price target is to utilize a “wisdom of crowds” approach, aggregating insights from multiple analysts rather than relying solely on individual opinions. With PEN now exceeding the average target price of $290.29 per share, investors are encouraged to evaluate the company further. They must consider whether this target is merely a waypoint toward even higher valuations or a signal that the stock has become overvalued, suggesting it might be prudent to reassess their holdings.
Current Analyst Ratings for Penumbra Inc
| Recent PEN Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 14 | 14 | 13 | 13 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 4 | 4 | 4 | 4 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.47 | 1.47 | 1.5 | 1.5 |
The average rating in the table above ranges from 1 to 5, with 1 indicating a Strong Buy and 5 indicating a Strong Sell. This analysis utilized data from Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
