Paradigm Capital Management Inc. NY Takes $19.55 Million Position in Penguin Solutions, Inc. $PENG

Key Points

• Paradigm Capital Management Inc. has acquired a significant new stake in Penguin Solutions, Inc. valued at approximately $19.55 million, making it the 26th largest position in their portfolio.
• Wall Street analysts have a generally positive outlook on Penguin Solutions, with a consensus rating of "Buy" and an average target price of $27.13 per share.
• Despite a negative net margin of 0.68%, Penguin Solutions reported better-than-expected earnings of $0.47 per share in its most recent quarter.

Paradigm Capital Management Inc. NY acquired a new stake in shares of Penguin Solutions, Inc. (NASDAQ:PENG - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 1,125,200 shares of the company's stock, valued at approximately $19,545,000. Penguin Solutions accounts for approximately 1.1% of Paradigm Capital Management Inc. NY's investment portfolio, making the stock its 26th largest holding. Paradigm Capital Management Inc. NY owned 2.13% of Penguin Solutions as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also bought and sold shares of the company. Nomura Holdings Inc. bought a new position in shares of Penguin Solutions in the first quarter worth $4,208,000. Truvestments Capital LLC bought a new position in shares of Penguin Solutions in the first quarter worth $353,000. Corebridge Financial Inc. bought a new position in shares of Penguin Solutions in the first quarter worth $473,000. Virtus Advisers LLC bought a new position in shares of Penguin Solutions in the first quarter worth $43,000. Finally, MetLife Investment Management LLC bought a new position in shares of Penguin Solutions in the first quarter worth $541,000.

Insider Activity at Penguin Solutions

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

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on PENG. The Goldman Sachs Group increased their price objective on Penguin Solutions from $22.50 to $25.00 and gave the stock a "buy" rating in a research report on Wednesday, July 9th. Rosenblatt Securities reiterated a "buy" rating and issued a $27.00 price objective on shares of Penguin Solutions in a research report on Monday, August 11th. JMP Securities reiterated a "market outperform" rating and issued a $26.00 price objective on shares of Penguin Solutions in a research report on Wednesday, July 9th. Wall Street Zen downgraded Penguin Solutions from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 12th. Finally, Loop Capital increased their price objective on Penguin Solutions from $30.00 to $35.00 and gave the stock a "buy" rating in a research report on Monday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $27.13.

Penguin Solutions Price Performance

NASDAQ PENG traded down $0.02 during trading hours on Wednesday, reaching $23.82. 709,122 shares of the stock traded hands, compared to its average volume of 667,898. The stock has a 50 day simple moving average of $23.47 and a two-hundred day simple moving average of $20.10. Penguin Solutions, Inc. has a 1 year low of $14.20 and a 1 year high of $25.94. The company has a debt-to-equity ratio of 1.08, a current ratio of 2.62 and a quick ratio of 2.24. The company has a market cap of $1.25 billion, a price-to-earnings ratio of 20.62 and a beta of 2.13.

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

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.