Empowered Funds LLC Invests $1.89 Million in Penguin Solutions, Inc. $PENG

Key Points

• Empowered Funds LLC acquired 24,852 shares of Penguin Solutions in the second quarter, valued at approximately $1.89 million. Several other major institutional investors also established or expanded positions in the company.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $63.33, although Barclays downgraded the stock to “underweight” with a $40 target.
• Penguin Solutions exceeded quarterly expectations, reporting $0.84 earnings per share versus the $0.63 estimate and $478.71 million in revenue versus the $407.47 million forecast. Insiders sold 9,327 shares worth about $536,103 over the past 90 days.

Empowered Funds LLC acquired a new position in Penguin Solutions, Inc. (NASDAQ:PENG - Free Report) in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 24,852 shares of the company's stock, valued at approximately $1,889,000.

Several other large investors have also recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in Penguin Solutions during the 2nd quarter valued at $581,658,000. Dimensional Fund Advisors LP bought a new position in shares of Penguin Solutions in the third quarter worth $60,264,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in shares of Penguin Solutions in the second quarter worth $150,192,000. Invesco Ltd. increased its holdings in shares of Penguin Solutions by 596.8% during the fourth quarter. Invesco Ltd. now owns 1,992,415 shares of the company's stock valued at $38,972,000 after purchasing an additional 1,706,482 shares during the period. Finally, William Blair Investment Management LLC acquired a new position in shares of Penguin Solutions during the fourth quarter valued at $18,290,000.

Insider Activity

In related news, SVP Joseph Clark sold 1,327 shares of the 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 completion of the sale, 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. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 firm's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $64.38, for a total transaction of $257,520.00. Following the sale, the senior vice president owned 120,794 shares of the company's stock, valued at $7,776,717.72. The trade was a 3.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 9,327 shares of company stock valued at $536,103. Insiders own 2.90% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the stock. Rosenblatt Securities lifted their price objective on shares of Penguin Solutions from $65.00 to $75.00 and gave the company a "buy" rating in a research note on Monday, July 6th. Citizens Jmp increased their target price 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. Stifel Nicolaus raised their target price on shares of Penguin Solutions from $66.00 to $75.00 and gave the company a "buy" rating in a research note on Wednesday, July 8th. Zacks Research raised shares of Penguin Solutions from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, June 30th. Finally, Barclays cut shares of Penguin Solutions from an "equal weight" rating to an "underweight" rating and set a $40.00 price objective for the company. in a report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $63.33.

Penguin Solutions Trading Up 2.2%

Shares of Penguin Solutions stock opened at $48.63 on Friday. The company has a quick ratio of 1.10, a current ratio of 1.54 and a debt-to-equity ratio of 0.65. The firm has a market cap of $2.49 billion, a price-to-earnings ratio of 34.49 and a beta of 2.86. The business has a fifty day simple moving average of $59.09 and a 200-day simple moving average of $43.95. Penguin Solutions, Inc. has a fifty-two week low of $16.04 and a fifty-two week high of $89.86.

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

Penguin Solutions 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.

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