Penguin Solutions (NASDAQ:PENG) SVP Sells $286,687.18 in Stock

Key Points

• Penguin Solutions SVP Joseph Clark sold 5,773 shares for $286,687 at an average price of $49.66 under a pre-arranged Rule 10b5-1 plan. He retained 80,080 shares after the sale.
• The stock fell $4.84 to $48.35 on Wednesday. Its latest reported quarterly results beat expectations, with EPS of $1.00 versus the $0.77 consensus and revenue of $566.68 million versus $520.99 million expected.
• Analysts maintain a “Moderate Buy” consensus and an average price target of $87.50; targets cited range from $60 to $100.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) SVP Joseph Clark sold 5,773 shares of the firm's stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $49.66, for a total value of $286,687.18. Following the sale, the senior vice president directly owned 80,080 shares of the company's stock, valued at $3,976,772.80. This represents a 6.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Joseph Gates Clark also recently made the following trade(s):

• On Friday, October 23rd, Joseph Clark sold 869 shares of Penguin Solutions stock. The stock was sold at an average price of $51.52, for a total transaction of $44,770.88.

Penguin Solutions Stock Performance

Shares of NASDAQ:PENG traded down $4.84 on Wednesday, hitting $48.35. The company had a trading volume of 3,346,254 shares, compared to its average volume of 2,596,217. Penguin Solutions, Inc. has a 1-year low of $16.04 and a 1-year high of $89.86. The stock has a market cap of $2.91 billion, a price-to-earnings ratio of 18.67, a P/E/G ratio of 0.56 and a beta of 2.87. The stock has a 50 day moving average price of $56.15 and a 200 day moving average price of $44.18. The company has a current ratio of 1.88, a quick ratio of 1.25 and a debt-to-equity ratio of 1.37.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last posted its earnings results on Tuesday, October 6th. The company reported $1.00 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.77 by $0.23. The company had revenue of $566.68 million during the quarter, compared to analysts' expectations of $520.99 million. Penguin Solutions had a net margin of 10.43% and a return on equity of 36.71%. During the same quarter last year, the company posted $0.11 EPS. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. Analysts expect that Penguin Solutions, Inc. will post 4.05 EPS for the current year.

Analysts Set New Price Targets

Several equities analysts have recently commented on PENG shares. Rosenblatt Securities reaffirmed a "buy" rating and issued a $100.00 target price on shares of Penguin Solutions in a research report on Wednesday. Stifel Nicolaus lifted their price target on Penguin Solutions from $75.00 to $85.00 and gave the stock a "buy" rating in a report on Wednesday, October 7th. The Goldman Sachs Group restated a "buy" rating and issued a $85.00 price target on shares of Penguin Solutions in a research note on Wednesday, October 7th. Barclays upped their price objective on Penguin Solutions from $40.00 to $60.00 and gave the company an "underweight" rating in a report on Wednesday, October 7th. Finally, Zacks Research raised Penguin Solutions from a "hold" rating to a "strong-buy" rating in a report on Friday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $87.50.

Penguin Solutions News Summary

Here are the key news stories impacting Penguin Solutions this week:

• Positive Sentiment: SK Hynix has taken a 9.1% activist stake in Penguin Solutions, adding a significant investor that may support strategic change or sharpen focus on the company’s direction. The article does not specify its plans. Article: SK Hynix Takes a 9.1% Activist Stake in Penguin Solutions
• Positive Sentiment: Penguin agreed to sell its Cree LED unit to Transom Capital, saying the move will let it focus on AI growth. The divestiture could simplify the business, though the sale’s financial terms were not included in the provided coverage. Article: Penguin Solutions Announces Agreement to Sell Cree LED to Transom Capital Group
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating and $100 price target, signaling substantial potential upside in the analyst’s view. Rosenblatt Securities stock recommendations
• Neutral Sentiment: Penguin plans to demonstrate updates to its full-stack AI Factory platform at SC26, including infrastructure software, accelerated computing systems and advanced memory technologies. The showcase reinforces its AI positioning, but the announcement does not indicate near-term revenue. Article: Penguin Solutions to Showcase Full-Stack AI Factory Platform Innovations at SC26
• Negative Sentiment: A separate analysis described the Cree LED unit as being sold at a low multiple and argued Penguin’s next report must demonstrate that its earnings are durable. That raises concerns about the sale’s value and the company’s ability to deliver on its growth expectations. Article: Penguin Solutions “Sells at a Low Multiple.” Its Next Report Has to Prove the Earnings Behind It

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in PENG. Global Retirement Partners LLC bought a new stake in shares of Penguin Solutions in the second quarter valued at approximately $26,000. Allworth Financial LP acquired a new position in Penguin Solutions in the 2nd quarter valued at $37,000. Nykredit A S acquired a new position in Penguin Solutions in the 2nd quarter valued at $42,000. Polaris Financial Partners acquired a new position in Penguin Solutions in the 3rd quarter valued at $50,000. Finally, Signaturefd LLC lifted its position in shares of Penguin Solutions by 25.3% during the 3rd quarter. Signaturefd LLC now owns 1,081 shares of the company's stock valued at $59,000 after acquiring an additional 218 shares during the period.

Penguin Solutions Company Profile

Penguin Solutions, Inc provides technology products and services for data center, cloud, artificial intelligence, high-performance computing, edge computing and embedded applications. The company designs and delivers memory products, computing platforms and integrated infrastructure intended to help organizations manage demanding workloads and deploy specialized technology environments.

Its offerings include memory modules and other memory-related products, high-performance computing systems, servers, storage and networking solutions, and software and services for infrastructure management.

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