Penguin Solutions, Inc. (NASDAQ:PENG) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analyst consensus — "Moderate Buy": Ten analysts cover PENG (six buy, three hold, one strong buy) and the average 1‑year price target is $27.25.
• Quarterly beat but premium valuation: Penguin reported EPS of $0.52 versus $0.43 expected and revenue of $343M versus $339M, yet the stock opened at $31.24 (near its 52‑week high $31.30) with a PE of 43.39, trading above the average analyst target.
• Insider selling noted: Insiders sold 30,115 shares (~$724k) in the last 90 days and now own 2.90% of the company, which may be a consideration for investors.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) has been given a consensus rating of "Moderate Buy" by the ten analysts that are covering the company, Marketbeat.com reports. Three investment analysts have rated the stock with a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among analysts that have covered the stock in the last year is $27.25.

A number of research analysts have recently issued reports on the company. Rosenblatt Securities reiterated a "buy" rating and issued a $30.00 price target on shares of Penguin Solutions in a report on Monday, March 30th. Needham & Company LLC upped their price objective on Penguin Solutions from $25.00 to $27.00 and gave the stock a "buy" rating in a research note on Thursday, April 2nd. Stifel Nicolaus reduced their price objective on shares of Penguin Solutions from $27.00 to $24.00 and set a "buy" rating for the company in a research note on Thursday, April 2nd. The Goldman Sachs Group assumed coverage on shares of Penguin Solutions in a report on Tuesday, January 13th. They set a "buy" rating and a $25.00 price objective on the stock. Finally, Zacks Research raised shares of Penguin Solutions from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 7th.

Penguin Solutions Price Performance

Shares of PENG opened at $31.24 on Friday. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.55 and a current ratio of 2.10. The company has a 50 day moving average price of $21.47 and a 200-day moving average price of $20.71. Penguin Solutions has a fifty-two week low of $16.04 and a fifty-two week high of $31.30. The stock has a market capitalization of $1.59 billion, a PE ratio of 43.39 and a beta of 2.65.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last issued its quarterly earnings data on Wednesday, April 1st. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.09. The company had revenue of $343.00 million for the quarter, compared to analyst estimates of $339.00 million. Penguin Solutions had a net margin of 4.07% and a return on equity of 19.94%. Equities analysts predict that Penguin Solutions will post 1.66 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, SVP Joseph Gates Clark sold 12,546 shares of the firm's stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $22.55, for a total value of $282,912.30. Following the completion of the transaction, the senior vice president directly owned 99,726 shares in the company, valued at $2,248,821.30. This trade represents a 11.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through 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 Penguin Solutions stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $17.75, for a total value of $71,000.00. Following the sale, the senior vice president directly owned 131,352 shares of the company's stock, valued at $2,331,498. This trade represents a 2.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 30,115 shares of company stock valued at $723,997 in the last 90 days. 2.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Penguin Solutions

A number of institutional investors have recently bought and sold shares of PENG. CWA Asset Management Group LLC increased its stake in shares of Penguin Solutions by 115.0% in the third quarter. CWA Asset Management Group LLC now owns 173,406 shares of the company's stock worth $4,557,000 after acquiring an additional 92,737 shares during the period. SG Americas Securities LLC acquired a new position in Penguin Solutions during the third quarter valued at $3,920,000. Kennedy Capital Management LLC lifted its position in Penguin Solutions by 31.9% during the third quarter. Kennedy Capital Management LLC now owns 992,168 shares of the company's stock valued at $26,074,000 after purchasing an additional 240,159 shares during the period. Barclays PLC boosted its holdings in Penguin Solutions by 46.9% in the third quarter. Barclays PLC now owns 1,055,189 shares of the company's stock valued at $27,730,000 after purchasing an additional 336,644 shares during the last quarter. Finally, American Century Companies Inc. boosted its holdings in Penguin Solutions by 35.3% in the third quarter. American Century Companies Inc. now owns 1,294,279 shares of the company's stock valued at $34,014,000 after purchasing an additional 337,564 shares during the last quarter.

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.

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