BlackRock Inc. Purchases New Shares in Penguin Solutions, Inc. $PENG

Key Points

• BlackRock acquired 7.65 million Penguin Solutions shares worth approximately $581.7 million, giving it a 14.93% stake in the company.
• Penguin Solutions reported quarterly EPS of $0.84, beating estimates of $0.63, while revenue of $478.7 million exceeded forecasts of $407.5 million.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a $63.33 target price, although price targets range from $40 to $85 and insiders have recently sold shares.

BlackRock Inc. acquired a new position in shares of Penguin Solutions, Inc. (NASDAQ:PENG - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 7,652,384 shares of the company's stock, valued at approximately $581,658,000. BlackRock Inc. owned 14.93% of Penguin Solutions at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of the company. William Blair Investment Management LLC bought a new stake in Penguin Solutions in the 4th quarter valued at about $18,290,000. Maverick Capital Ltd. acquired a new stake in shares of Penguin Solutions in the first quarter valued at approximately $771,000. Fisher Asset Management LLC bought a new stake in shares of Penguin Solutions in the fourth quarter valued at approximately $716,000. California State Teachers Retirement System grew its position in Penguin Solutions by 52.8% during the first quarter. California State Teachers Retirement System now owns 74,580 shares of the company's stock worth $1,313,000 after buying an additional 25,763 shares in the last quarter. Finally, Pacer Advisors Inc. increased its stake in Penguin Solutions by 34.0% during the 1st quarter. Pacer Advisors Inc. now owns 261,776 shares of the company's stock worth $4,607,000 after acquiring an additional 66,460 shares during the period.

Penguin Solutions Price Performance

Shares of NASDAQ:PENG opened at $52.62 on Monday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.10 and a current ratio of 1.54. Penguin Solutions, Inc. has a 52 week low of $16.04 and a 52 week high of $89.86. The firm has a market cap of $2.70 billion, a PE ratio of 37.32 and a beta of 2.87. The firm's fifty day moving average is $61.83 and its 200-day moving average is $41.97.

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

Insiders Place Their Bets

In related news, SVP Joseph Gates Clark sold 10,351 shares of the business's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $58.87, for a total value of $609,363.37. Following the transaction, the senior vice president owned 66,425 shares in the company, valued at $3,910,439.75. The trade was a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 Tuesday, May 26th. The stock was sold at an average price of $54.45, for a total value of $217,800.00. Following the sale, the senior vice president owned 124,794 shares of the company's stock, valued at approximately $6,795,033.30. The trade was a 3.11% 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. Insiders have sold 19,678 shares of company stock valued at $1,160,946 in the last three months. 2.90% of the stock is owned by insiders.

Wall Street Analyst Weigh In

PENG has been the subject of a number of recent analyst reports. Wall Street Zen downgraded Penguin Solutions from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 26th. Rosenblatt Securities raised their target price on shares of Penguin Solutions from $65.00 to $75.00 and gave the company a "buy" rating in a report on Monday, July 6th. Barclays downgraded shares of Penguin Solutions from an "equal weight" rating to an "underweight" rating and set a $40.00 price target for the company. in a report on Monday, July 20th. 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, Stifel Nicolaus lifted their price target on Penguin Solutions from $66.00 to $75.00 and gave the company a "buy" rating in a research note on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $63.33.

About Penguin Solutions

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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