Penguin Solutions (NASDAQ:PENG) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Penguin Solutions to “strong buy” from “buy.” Overall analyst sentiment is “Moderate Buy,” with an average price target of $87.50.
• Penguin Solutions reported stronger-than-expected quarterly results, earning $1.00 per share versus the $0.77 consensus estimate and generating $566.68 million in revenue versus expectations of $520.99 million.
• Shares opened at $57.10 after falling 7.7%; the stock has traded between $16.04 and $89.86 over the past year. Two senior vice presidents recently sold shares under pre-arranged Rule 10b5-1 plans, while insiders retain a 2.90% stake.

Penguin Solutions (NASDAQ:PENG - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research note issued on Saturday, Wall Street Zen reports.

A number of other equities analysts also recently commented on the stock. Citigroup reaffirmed an "outperform" rating on shares of Penguin Solutions in a report on Wednesday, July 8th. Zacks Research upgraded shares of Penguin Solutions from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 9th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $85.00 price target on shares of Penguin Solutions in a report on Wednesday, October 7th. Citizens Jmp boosted their price objective on shares of Penguin Solutions from $65.00 to $85.00 and gave the company a "market outperform" rating in a research report on Wednesday, July 8th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Penguin Solutions in a research report on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Penguin Solutions presently has an average rating of "Moderate Buy" and an average target price of $87.50.

Penguin Solutions Trading Down 7.7%

Shares of NASDAQ PENG opened at $57.10 on Friday. The company has a quick ratio of 1.25, a current ratio of 1.88 and a debt-to-equity ratio of 1.37. The stock's 50 day moving average price is $56.43 and its two-hundred day moving average price is $52.31. Penguin Solutions has a 52-week low of $16.04 and a 52-week high of $89.86. The stock has a market capitalization of $2.93 billion, a P/E ratio of 22.05, a PEG ratio of 0.73 and a beta of 2.86.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last issued its earnings results on Tuesday, October 6th. The company reported $1.00 EPS for the quarter, topping the consensus estimate of $0.77 by $0.23. Penguin Solutions had a return on equity of 36.71% and a net margin of 10.43%. The company had revenue of $566.68 million during the quarter, compared to analyst estimates of $520.99 million. During the same quarter last year, the firm earned $0.11 EPS. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. On average, analysts anticipate that Penguin Solutions will post 4.05 earnings per share for the current fiscal year.

Insider Buying and Selling

In related 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 transaction, the senior vice president owned 63,056 shares in the company, valued at $3,623,828.32. This trade represents a 2.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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 business's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $50.58, for a total value of $202,320.00. Following the sale, the senior vice president directly owned 112,994 shares in the company, valued at approximately $5,715,236.52. The trade was 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. Corporate insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Penguin Solutions

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Global Retirement Partners LLC bought a new stake in shares of Penguin Solutions in the 2nd quarter worth $26,000. GAMMA Investing LLC grew its holdings in Penguin Solutions by 9.1% during the third quarter. GAMMA Investing LLC now owns 5,527 shares of the company's stock worth $302,000 after acquiring an additional 462 shares during the period. Allworth Financial LP acquired a new position in Penguin Solutions during the second quarter worth about $37,000. Nykredit A S acquired a new position in Penguin Solutions during the second quarter worth about $42,000. Finally, Polaris Financial Partners bought a new stake in Penguin Solutions in the third quarter worth about $50,000.

Penguin Solutions Company Profile

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.

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