Penguin Solutions (NASDAQ:PENG) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Penguin Solutions to “hold” from “strong buy.” Despite the downgrade, analysts’ overall consensus remains “Moderate Buy,” with six Buy, two Hold, and one Sell rating and a consensus price target of $63.33.
• Penguin Solutions reported stronger-than-expected quarterly results, posting $0.84 in EPS versus the $0.63 estimate and revenue of $478.71 million versus the $407.47 million consensus.
• The stock opened at $51.30 and has traded between $16.04 and $89.86 over the past year. Insiders sold 9,327 shares worth approximately $536,103 over the last 90 days, while several institutional investors established new positions.

Penguin Solutions (NASDAQ:PENG - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday, Zacks reports.

Several other equities research analysts have also commented on PENG. Stifel Nicolaus boosted their price objective on shares of Penguin Solutions from $66.00 to $75.00 and gave the stock a "buy" rating in a research report on Wednesday, July 8th. Needham & Company LLC lifted their target price on shares of Penguin Solutions from $60.00 to $80.00 and gave the stock a "buy" rating in a research report on Wednesday, July 8th. Barclays lowered shares of Penguin Solutions from an "equal weight" rating to an "underweight" rating and set a $40.00 price target on the stock. in a research report on Monday, July 20th. Weiss Ratings upgraded Penguin Solutions from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, July 8th. Finally, Citigroup reaffirmed an "outperform" rating on shares of Penguin Solutions in a research note on Wednesday, July 8th. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Penguin Solutions presently has an average rating of "Moderate Buy" and a consensus price target of $63.33.

Penguin Solutions Stock Performance

NASDAQ PENG opened at $51.30 on Monday. Penguin Solutions has a 1-year low of $16.04 and a 1-year high of $89.86. The company has a market capitalization of $2.63 billion, a P/E ratio of 36.38 and a beta of 2.86. The business has a 50 day moving average price of $58.07 and a 200 day moving average price of $44.63. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.54 and a quick ratio of 1.10.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last posted its earnings results on Tuesday, July 7th. The company reported $0.84 EPS for the quarter, topping analysts' consensus estimates of $0.63 by $0.21. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.The company had revenue of $478.71 million for the quarter, compared to the consensus estimate of $407.47 million. During the same period in the previous year, the business earned $0.52 earnings per share. Sell-side analysts expect that Penguin Solutions will post 2.08 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Joseph Clark sold 1,327 shares of the company's stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $57.47, for a total value of $76,262.69. Following the completion of the transaction, the senior vice president directly owned 63,056 shares in the company, valued at approximately $3,623,828.32. This represents a 2.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $50.58, for a total value of $202,320.00. Following the transaction, the senior vice president owned 112,994 shares in the company, valued at $5,715,236.52. This trade represents a 3.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 9,327 shares of company stock valued at $536,103. Company insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Global Retirement Partners LLC acquired a new stake in shares of Penguin Solutions in the second quarter worth approximately $26,000. Kestra Advisory Services LLC acquired a new position in Penguin Solutions during the fourth quarter worth approximately $29,000. Allworth Financial LP acquired a new position in Penguin Solutions during the second quarter worth approximately $37,000. Raymond James Financial Inc. purchased a new position in Penguin Solutions during the second quarter worth approximately $37,000. Finally, Nykredit A S acquired a new position in shares of Penguin Solutions in the 2nd quarter valued at $42,000.

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.

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