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

Key Points

• Consensus rating: Nine brokerages give Penguin Solutions a "Moderate Buy" consensus (6 buys, 2 holds, 1 sell) with an average 12‑month price target of about $27.29.
• Recent results: Penguin beat the quarter with $0.52 EPS vs. $0.43 expected and $343M revenue vs. $339M, yet the stock trades near $20.27 and the company has a market cap of ~$1.03B (PE 28.15).
• Insider and investor activity: Two senior VPs recently sold shares (reducing their stakes) — insiders own 2.90% overall — while several large investors made small or new position changes in recent quarters.

Shares of Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) have received an average recommendation of "Moderate Buy" from the nine brokerages that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, two have assigned a hold recommendation and six have given a buy recommendation to the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $27.2857.

PENG has been the subject of a number of recent analyst reports. Rosenblatt Securities reiterated a "buy" rating and issued a $30.00 target price on shares of Penguin Solutions in a research note on Monday, March 30th. Stifel Nicolaus lowered their target price 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. Needham & Company LLC lifted their target price on shares of Penguin Solutions from $25.00 to $27.00 and gave the stock a "buy" rating in a research note on Thursday, April 2nd. Weiss Ratings cut shares of Penguin Solutions from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, March 11th. Finally, Wall Street Zen upgraded shares of Penguin Solutions from a "hold" rating to a "buy" rating in a research note on Saturday, February 21st.

Penguin Solutions Stock Down 2.0%

PENG stock opened at $20.27 on Tuesday. The firm has a 50 day moving average of $18.79 and a 200 day moving average of $20.61. The stock has a market capitalization of $1.03 billion, a PE ratio of 28.15 and a beta of 2.23. The company has a quick ratio of 1.86, a current ratio of 2.10 and a debt-to-equity ratio of 1.09. Penguin Solutions has a 52 week low of $14.20 and a 52 week high of $29.80.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last released its earnings results on Wednesday, April 1st. The company reported $0.52 EPS for the quarter, topping analysts' consensus estimates of $0.43 by $0.09. The company had revenue of $343.00 million during the quarter, compared to analysts' expectations of $339.00 million. Penguin Solutions had a net margin of 4.07% and a return on equity of 19.94%. Sell-side analysts forecast that Penguin Solutions will post 1.05 earnings per share for the current year.

Insider Activity at Penguin Solutions

In other Penguin Solutions news, SVP Anne Kuykendall sold 4,000 shares of Penguin Solutions stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $17.75, for a total transaction of $71,000.00. Following the completion of the sale, the senior vice president directly owned 131,352 shares in the company, valued at approximately $2,331,498. The trade was a 2.96% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, SVP Joseph Gates Clark sold 1,346 shares of the business's stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $19.03, for a total transaction of $25,614.38. Following the completion of the transaction, the senior vice president owned 122,318 shares of the company's stock, valued at approximately $2,327,711.54. This represents a 1.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Penguin Solutions

Large investors have recently made changes to their positions in the company. Farther Finance Advisors LLC lifted its stake in shares of Penguin Solutions by 187.0% in the 4th quarter. Farther Finance Advisors LLC now owns 1,452 shares of the company's stock valued at $28,000 after purchasing an additional 946 shares during the period. Kestra Advisory Services LLC acquired a new position in shares of Penguin Solutions in the 4th quarter valued at $29,000. Raymond James Financial Inc. acquired a new position in shares of Penguin Solutions in the 2nd quarter valued at $37,000. Strs Ohio acquired a new position in shares of Penguin Solutions in the 3rd quarter valued at $42,000. Finally, Jones Financial Companies Lllp lifted its stake in shares of Penguin Solutions by 4,131.7% in the 3rd quarter. Jones Financial Companies Lllp now owns 1,735 shares of the company's stock valued at $45,000 after purchasing an additional 1,694 shares during the period.

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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