PSIX plunges 52% after Q1 profit drop and margin compression spook investors

Power Solutions International, Inc. (PSIX) is down 52.2% today. Here is some analysis on what might have caused this price movement.

Analysis: The selloff appears tied to the company’s first-quarter 2026 earnings update, which showed a sharp year-over-year decline in profitability and a meaningful step-down in gross margin. Investors may also be reacting to cautious near-term expectations, with second-quarter revenue expected to be roughly in line with Q1 while ramp-up costs continue to weigh on results.

Details:

The company reported Q1 2026 net sales of $128.6 million (down 5% year over year) and net income of $7.3 million (down 62%), with diluted EPS of $0.32 versus $0.83 a year earlier.

Gross margin fell to 22.9% from 29.7% year over year, with the company pointing to elevated production costs tied to capacity ramp-up and a less favorable mix.

Management indicated Q2 2026 revenue should be generally consistent with Q1, while expecting stronger sales in the second half of 2026 (subject to order timing and market conditions).

This could also reflect a “crowded exit” after the stock’s prior run-up, as investors recalibrate expectations around margin normalization and demand volatility in certain end markets.

Sources:

U.S. SEC, Company press release, Investing.com

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

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$PSIX Hedge Fund Activity

We have seen 129 institutional investors add shares of $PSIX stock to their portfolio, and 111 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

SITUATIONAL AWARENESS LP added 432,300 shares (+inf%) to their portfolio in Q4 2025, for an estimated $24,701,622
SG AMERICAS SECURITIES, LLC added 214,612 shares (+12036.6%) to their portfolio in Q1 2026, for an estimated $13,065,578
PORTOLAN CAPITAL MANAGEMENT, LLC removed 195,804 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $11,188,240
ANTIPODES PARTNERS LTD removed 175,536 shares (-76.9%) from their portfolio in Q1 2026, for an estimated $10,686,631
BLACKROCK, INC. added 122,026 shares (+22.1%) to their portfolio in Q4 2025, for an estimated $6,972,565
SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 118,788 shares (-85.8%) from their portfolio in Q4 2025, for an estimated $6,787,546
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP added 118,011 shares (+36.3%) to their portfolio in Q4 2025, for an estimated $6,743,148

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$PSIX Analyst Ratings

Wall Street analysts have issued reports on $PSIX in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Jefferies issued a "Buy" rating on 12/01/2025

To track analyst ratings and price targets for $PSIX, check out Quiver Quantitative's $PSIX forecast page.

$PSIX Price Targets

Multiple analysts have issued price targets for $PSIX recently. We have seen 2 analysts offer price targets for $PSIX in the last 6 months, with a median target of $89.95.

Here are some recent targets:

Alan Lau from Jefferies set a target price of $92.9 on 03/24/2026
Sergey Glinyanov from Freedom Capital Markets set a target price of $87.0 on 12/05/2025

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.