778,968 Shares in Penguin Solutions, Inc. $PENG Acquired by Wellington Management Group LLP

Key Points

• Wellington Management Group LLP acquired a $13.53 million stake in Penguin Solutions, purchasing 778,968 shares during the first quarter, representing approximately 1.48% of the company's shares.
• Analysts remain optimistic, with eight firms giving the stock a "Buy" rating and an average price target of $27.13, despite a recent downgrade from "strong-buy" to "buy" by Wall Street Zen.
• Penguin Solutions reported an EPS of $0.47, exceeding forecasts, but also recorded a negative net margin of 0.68%, raising concerns about overall profitability.

Wellington Management Group LLP acquired a new position in Penguin Solutions, Inc. (NASDAQ:PENG - Free Report) in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 778,968 shares of the company's stock, valued at approximately $13,531,000. Wellington Management Group LLP owned 1.48% of Penguin Solutions as of its most recent SEC filing.

A number of other hedge funds have also recently made changes to their positions in the business. Vanguard Group Inc. bought a new position in shares of Penguin Solutions in the first quarter worth about $111,458,000. Charles Schwab Investment Management Inc. bought a new position in shares of Penguin Solutions in the first quarter worth about $14,786,000. Royce & Associates LP bought a new position in shares of Penguin Solutions in the first quarter worth about $14,020,000. American Century Companies Inc. bought a new position in shares of Penguin Solutions in the first quarter worth about $13,902,000. Finally, Deutsche Bank AG bought a new position in shares of Penguin Solutions in the first quarter worth about $13,231,000.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on PENG shares. Needham & Company LLC upped their price objective on Penguin Solutions from $27.00 to $30.00 and gave the stock a "buy" rating in a research note on Tuesday, July 22nd. JPMorgan Chase & Co. boosted their target price on Penguin Solutions from $21.00 to $24.00 and gave the stock a "neutral" rating in a research report on Thursday, July 17th. The Goldman Sachs Group boosted their target price 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 target price on shares of Penguin Solutions in a research report on Monday, August 11th. Finally, Loop Capital boosted their target price 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 issued a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average price target of $27.13.

Insider Buying and Selling

In other news, Director Penny Herscher sold 2,046 shares of the company's stock in a transaction that occurred on Tuesday, July 15th. The stock was 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 approximately $463,203.24. This represents a 10.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Jack A. Pacheco sold 63,447 shares of the company's stock in a transaction that occurred 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 transaction, the executive vice president directly owned 227,231 shares in the company, valued at approximately $5,642,145.73. This represents a 21.83% decrease in their position. The disclosure for this sale can be found here. In 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.

Penguin Solutions Trading Down 2.0%

PENG stock traded down $0.49 during midday trading on Friday, reaching $24.13. 459,960 shares of the company traded hands, compared to its average volume of 718,555. Penguin Solutions, Inc. has a 52-week low of $14.20 and a 52-week high of $25.94. The company has a debt-to-equity ratio of 1.08, a quick ratio of 2.24 and a current ratio of 2.62. The business has a 50 day moving average of $23.24 and a 200-day moving average of $20.04. The firm has a market capitalization of $1.26 billion, a price-to-earnings ratio of 21.04 and a beta of 2.02.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last issued its quarterly earnings data on Tuesday, July 8th. The company reported $0.47 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to the consensus estimate of $330.82 million. Penguin Solutions has set its FY 2025 guidance at 1.750-1.850 EPS. As a group, sell-side analysts expect that Penguin Solutions, Inc. will post 1.05 earnings per share 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.