Royal Bank of Canada Sells 88,061 Shares of Penguin Solutions, Inc. $PENG

Key Points

• Royal Bank of Canada cut its Penguin Solutions stake by 31.4%, selling 88,061 shares and retaining 192,135 shares valued at approximately $3.38 million.
• Despite the reduction, several major investors increased their positions, including Invesco, Paradigm Capital, and Ophir Asset Management. Penguin Solutions shares were trading at $63.80, up 4.8%, after the company reported quarterly EPS of $0.84 and revenue of $478.71 million, both above analyst expectations.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $63.33, though Barclays downgraded the stock to “underweight” with a $40 target. Company insiders have also sold shares under pre-arranged trading plans.

Royal Bank of Canada lowered its holdings in shares of Penguin Solutions, Inc. (NASDAQ:PENG - Free Report) by 31.4% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 192,135 shares of the company's stock after selling 88,061 shares during the quarter. Royal Bank of Canada owned 0.38% of Penguin Solutions worth $3,381,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently made changes to their positions in the company. State Street Corp raised its position in Penguin Solutions by 3.2% during the fourth quarter. State Street Corp now owns 2,957,938 shares of the company's stock valued at $57,857,000 after purchasing an additional 91,805 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Penguin Solutions by 4.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,388,748 shares of the company's stock worth $46,726,000 after purchasing an additional 95,585 shares during the period. Invesco Ltd. boosted its holdings in shares of Penguin Solutions by 596.8% in the 4th quarter. Invesco Ltd. now owns 1,992,415 shares of the company's stock worth $38,972,000 after purchasing an additional 1,706,482 shares during the period. Paradigm Capital Management Inc. NY boosted its holdings in shares of Penguin Solutions by 73.8% in the 1st quarter. Paradigm Capital Management Inc. NY now owns 1,605,100 shares of the company's stock worth $28,250,000 after purchasing an additional 681,700 shares during the period. Finally, Ophir Asset Management Pty Ltd increased its position in shares of Penguin Solutions by 234.3% during the 4th quarter. Ophir Asset Management Pty Ltd now owns 1,211,612 shares of the company's stock valued at $23,699,000 after purchasing an additional 849,178 shares during the last quarter.

Penguin Solutions Trading Up 4.8%

PENG opened at $63.80 on Friday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.10 and a current ratio of 1.54. The stock's 50 day moving average price is $62.53 and its 200-day moving average price is $40.56. Penguin Solutions, Inc. has a one year low of $16.04 and a one year high of $89.86. The stock has a market cap of $3.27 billion, a price-to-earnings ratio of 45.25 and a beta of 2.87.

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, topping analysts' consensus estimates of $0.63 by $0.21. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.The firm had revenue of $478.71 million during the quarter, compared to analyst estimates of $407.47 million. During the same period last year, the company earned $0.52 EPS. On average, equities analysts forecast that Penguin Solutions, Inc. will post 2.08 EPS for the current year.

Wall Street Analyst Weigh In

PENG has been the topic of several recent research reports. Barclays lowered Penguin Solutions from an "equal weight" rating to an "underweight" rating and set a $40.00 price target on the stock. in a report on Monday, July 20th. Zacks Research raised shares of Penguin Solutions from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, June 30th. Stifel Nicolaus boosted their price objective on shares of Penguin Solutions from $66.00 to $75.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. Weiss Ratings raised shares of Penguin Solutions from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, July 8th. Finally, Rosenblatt Securities raised their target price on shares of Penguin Solutions from $65.00 to $75.00 and gave the stock a "buy" rating in a report on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $63.33.

Insiders Place Their Bets

In related news, SVP Anne Kuykendall sold 4,000 shares of the firm's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $64.38, for a total value of $257,520.00. Following the transaction, the senior vice president owned 120,794 shares of the company's stock, valued at $7,776,717.72. This trade represents a 3.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Gates Clark sold 1,327 shares of the firm's stock in a transaction dated Thursday, July 23rd. The stock was sold at an average price of $57.47, for a total transaction of $76,262.69. Following the completion of the transaction, the senior vice president directly owned 63,056 shares in the company, valued at $3,623,828.32. This represents a 2.06% decrease in their position. The SEC filing for this sale provides additional information. 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 over the last three months. Insiders own 2.90% 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.

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