American Century Companies Inc. Makes New $13.90 Million Investment in Penguin Solutions, Inc. $PENG

Key Points

• American Century Companies Inc. acquired a new stake in Penguin Solutions, purchasing 800,354 shares valued at approximately $13.9 million, representing 1.52% ownership.
• Analysts generally have a positive outlook on Penguin Solutions, with multiple firms upgrading their price targets and assigning a consensus rating of "Buy" and a consensus target price of $27.13.
• Insider trading activity has been noted, including significant sales by Director Penny Herscher and EVP Jack A. Pacheco, resulting in a decrease in their shareholdings.

American Century Companies Inc. bought a new position in Penguin Solutions, Inc. (NASDAQ:PENG - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 800,354 shares of the company's stock, valued at approximately $13,902,000. American Century Companies Inc. owned approximately 1.52% of Penguin Solutions as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Vanguard Group Inc. acquired a new stake in Penguin Solutions during the first quarter valued at $111,458,000. Charles Schwab Investment Management Inc. bought a new position in Penguin Solutions during the first quarter valued at approximately $14,786,000. Royce & Associates LP acquired a new stake in Penguin Solutions in the first quarter valued at approximately $14,020,000. Deutsche Bank AG bought a new stake in Penguin Solutions in the first quarter worth approximately $13,231,000. Finally, Foundry Partners LLC acquired a new position in shares of Penguin Solutions during the 1st quarter worth $11,989,000.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on PENG shares. Wall Street Zen downgraded shares of Penguin Solutions from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 12th. Needham & Company LLC upped their price target on shares of Penguin Solutions from $27.00 to $30.00 and gave the company a "buy" rating in a report on Tuesday, July 22nd. The Goldman Sachs Group lifted their price objective on Penguin Solutions from $22.50 to $25.00 and gave the stock a "buy" rating in a research note on Wednesday, July 9th. Loop Capital lifted their price target on Penguin Solutions from $30.00 to $35.00 and gave the stock a "buy" rating in a research report on Monday, July 14th. Finally, JMP Securities reiterated a "market outperform" rating and set a $26.00 target price on shares of Penguin Solutions in a research note on Wednesday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of $27.13.

Penguin Solutions Trading Down 2.0%

PENG traded down $0.49 during mid-day trading on Friday, reaching $24.13. The stock had a trading volume of 459,960 shares, compared to its average volume of 861,167. The company has a debt-to-equity ratio of 1.08, a quick ratio of 2.24 and a current ratio of 2.62. Penguin Solutions, Inc. has a 52 week low of $14.20 and a 52 week high of $25.94. The stock has a market capitalization of $1.26 billion, a P/E ratio of -86.18 and a beta of 2.02. The firm's fifty day simple moving average is $23.15 and its two-hundred day simple moving average is $20.02.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last announced its quarterly earnings data on Tuesday, July 8th. The company reported $0.47 EPS for the quarter, topping analysts' consensus estimates of $0.30 by $0.17. Penguin Solutions had a positive return on equity of 13.27% and a negative net margin of 0.68%.The business had revenue of $324.25 million during the quarter, compared to analysts' expectations of $330.82 million. Penguin Solutions has set its FY 2025 guidance at 1.750-1.850 EPS. On average, equities analysts predict that Penguin Solutions, Inc. will post 1.05 EPS for the current year.

Insider Activity at Penguin Solutions

In related news, Director Penny Herscher sold 2,046 shares of the company's stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $25.42, for a total value of $52,009.32. Following the transaction, the director directly owned 18,222 shares in the company, valued at approximately $463,203.24. This represents a 10.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Jack A. Pacheco sold 63,447 shares of the company's stock in a transaction on Monday, July 21st. The shares were sold at an average price of $24.83, for a total value of $1,575,389.01. Following the sale, the executive vice president owned 227,231 shares of the company's stock, valued at approximately $5,642,145.73. The trade was a 21.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 66,175 shares of company stock worth $1,644,448 in the last ninety days. Insiders own 2.60% of the company's stock.

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.