Penguin Solutions (NASDAQ:PENG) Stock Rating Reaffirmed as Buy by Rosenblatt Securities

Key Points

• Rosenblatt Securities reaffirmed a Buy rating on Penguin Solutions with an $80 price target, implying 45.51% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with an average target of $64.17.
• Penguin Solutions exceeded quarterly expectations, reporting $0.84 EPS versus $0.63 expected and revenue of $478.71 million versus the $407.47 million consensus estimate.
• The stock opened at $54.98, while institutional investors increased or initiated positions; meanwhile, two senior vice presidents sold shares under pre-arranged Rule 10b5-1 trading plans.

Penguin Solutions (NASDAQ:PENG - Get Free Report)'s stock had its "buy" rating reaffirmed by equities researchers at Rosenblatt Securities in a report issued on Friday, Benzinga reports. They currently have a $80.00 target price on the stock. Rosenblatt Securities' target price would indicate a potential upside of 45.51% from the stock's previous close.

Other equities research analysts have also recently issued research reports about the company. Barclays cut Penguin Solutions from an "equal weight" rating to an "underweight" rating and set a $40.00 price target for the company. in a research note on Monday, July 20th. Weiss Ratings raised Penguin Solutions from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, July 8th. Citigroup reiterated an "outperform" rating on shares of Penguin Solutions in a research note on Wednesday, July 8th. Zacks Research lowered shares of Penguin Solutions from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 7th. Finally, Needham & Company LLC boosted their price objective 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. Six research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Penguin Solutions presently has an average rating of "Moderate Buy" and an average price target of $64.17.

Penguin Solutions Trading Up 0.5%

Shares of NASDAQ PENG opened at $54.98 on Friday. The business has a fifty day simple moving average of $53.08 and a 200-day simple moving average of $48.63. The company has a market cap of $2.82 billion, a price-to-earnings ratio of 38.99 and a beta of 2.86. Penguin Solutions has a 12 month low of $16.04 and a 12 month high of $89.86. The company has a quick ratio of 1.10, a current ratio of 1.54 and a debt-to-equity ratio of 0.65.

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

Insider Buying and Selling at Penguin Solutions

In other Penguin Solutions news, SVP Joseph Clark sold 1,327 shares of the firm's stock in a transaction that occurred on Thursday, July 23rd. The shares were sold at an average price of $57.47, for a total transaction of $76,262.69. Following the sale, the senior vice president directly owned 63,056 shares in the company, valued at approximately $3,623,828.32. This trade represents a 2.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 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 on Monday, August 24th. The stock was sold at an average price of $50.58, for a total transaction of $202,320.00. Following the sale, the senior vice president directly owned 112,994 shares of the company's stock, valued at $5,715,236.52. This represents a 3.42% decrease in their position. 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. Company insiders own 2.90% of the company's stock.

Institutional Trading of Penguin Solutions

Hedge funds and other institutional investors have recently modified their holdings of the company. Tidal Investments LLC raised its position in Penguin Solutions by 224.6% in the 2nd quarter. Tidal Investments LLC now owns 165,954 shares of the company's stock valued at $12,614,000 after buying an additional 114,821 shares during the last quarter. IPG Investment Advisors LLC bought a new position in shares of Penguin Solutions during the 2nd quarter worth approximately $221,000. Integrated Wealth Concepts LLC bought a new position in shares of Penguin Solutions during the 2nd quarter worth approximately $395,000. Nykredit A S acquired a new stake in shares of Penguin Solutions in the second quarter valued at approximately $42,000. Finally, Corient Private Wealth LP bought a new stake in shares of Penguin Solutions in the second quarter worth $341,000.

About Penguin Solutions

Penguin Solutions, Inc provides intelligent infrastructure solutions for artificial intelligence, high-performance computing, enterprise data centers and other demanding technology environments. The company combines specialized hardware, software and professional services to help organizations design, deploy and manage complex computing infrastructure.

Its offerings include AI and high-performance computing systems, servers, storage and networking infrastructure, as well as software and services for infrastructure management, optimization and support.