Penguin Solutions, Inc. (NASDAQ:PENG) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts rate Penguin Solutions a “Moderate Buy,” with six buy, two hold, and one sell recommendation; the average 12-month price target is $63.33.
• Penguin Solutions exceeded quarterly expectations, reporting $0.84 EPS versus $0.63 expected and revenue of $478.71 million versus $407.47 million projected.
• BlackRock and several other institutional investors established significant positions during the second quarter, while two senior vice presidents sold shares under pre-arranged 10b5-1 plans.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) has been given a consensus rating of "Moderate Buy" by the nine ratings firms that are covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and six have assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $63.33.

A number of equities research analysts have recently weighed in on the stock. Weiss Ratings raised shares of Penguin Solutions from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 8th. Citigroup reaffirmed an "outperform" rating on shares of Penguin Solutions in a research report on Wednesday, July 8th. Citizens Jmp boosted their price target on Penguin Solutions from $65.00 to $85.00 and gave the company a "market outperform" rating in a research note on Wednesday, July 8th. Barclays downgraded Penguin Solutions from an "equal weight" rating to an "underweight" rating and set a $40.00 price target on the stock. in a research note on Monday, July 20th. Finally, Rosenblatt Securities raised their price objective on Penguin Solutions from $65.00 to $75.00 and gave the stock a "buy" rating in a research note on Monday, July 6th.

Insider Buying and Selling

In related news, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were 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 approximately $5,715,236.52. This represents a 3.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 1,327 shares of the firm's stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $57.47, for a total transaction of $76,262.69. Following the transaction, the senior vice president directly owned 63,056 shares of the company's stock, valued at $3,623,828.32. This represents a 2.06% 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. 2.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Penguin Solutions in the 2nd quarter valued at about $581,658,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of Penguin Solutions in the second quarter worth about $150,192,000. Paradigm Capital Management Inc. NY acquired a new stake in Penguin Solutions during the second quarter worth about $52,135,000. William Blair Investment Management LLC acquired a new stake in Penguin Solutions during the second quarter worth about $34,207,000. Finally, Bank of New York Mellon Corp purchased a new position in Penguin Solutions during the second quarter valued at approximately $22,503,000.

Penguin Solutions Stock Down 2.2%

PENG stock opened at $54.98 on Tuesday. The firm has a 50 day moving average of $53.28 and a 200 day moving average of $47.85. The stock has a market capitalization of $2.82 billion, a PE ratio of 38.99 and a beta of 2.86. 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 has a 52 week low of $16.04 and a 52 week high of $89.86.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last issued its quarterly earnings results on Tuesday, July 7th. The company reported $0.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.63 by $0.21. The business had revenue of $478.71 million for 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 quarter in the prior year, the business posted $0.52 EPS. Sell-side analysts forecast that Penguin Solutions will post 2.08 earnings per share for the current year.

About Penguin Solutions

Penguin Solutions, Inc NASDAQ: PENG provides technology solutions for data centers, high-performance computing, artificial intelligence, and intelligent edge applications. The company helps organizations design, deploy, and manage specialized computing environments, including systems used for demanding workloads such as scientific research, machine learning, and enterprise applications.

Its offerings include accelerated computing platforms, high-performance servers and clusters, software and services for managing complex computing infrastructure, and memory and storage products.

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