Penguin Solutions, Inc. (NASDAQ:PENG) Receives Consensus Recommendation of "Buy" from Analysts

Key Points

• Penguin Solutions, Inc. has received a consensus rating of "Buy" from nine research firms, with the average 1-year price objective set at $27.13.
• Recent transactions revealed insider selling, with Director Penny Herscher and EVP Jack A. Pacheco each selling significant shares, representing a decline in their ownership of the company's stock.
• The company's latest earnings report showed an EPS of $0.47, exceeding estimates, although revenue fell short of expectations at $324.25 million.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) has been given an average rating of "Buy" by the nine ratings firms that are currently covering the firm, MarketBeat Ratings reports. One research analyst has rated the stock with a hold recommendation, seven have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $27.13.

A number of equities research analysts recently commented on PENG shares. Needham & Company LLC raised their price objective on shares of Penguin Solutions from $27.00 to $30.00 and gave the stock a "buy" rating in a report on Tuesday, July 22nd. The Goldman Sachs Group lifted their price target on shares of Penguin Solutions from $22.50 to $25.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. JMP Securities reiterated a "market outperform" rating and issued a $26.00 price target on shares of Penguin Solutions in a research note on Wednesday, July 9th. JPMorgan Chase & Co. lifted their price target on shares of Penguin Solutions from $21.00 to $24.00 and gave the company a "neutral" rating in a research note on Thursday, July 17th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $27.00 price target on shares of Penguin Solutions in a research note on Thursday, July 3rd.

Penguin Solutions Trading Down 3.2%

PENG traded down $0.76 during mid-day trading on Thursday, hitting $22.81. The stock had a trading volume of 851,992 shares, compared to its average volume of 1,335,687. The stock's fifty day simple moving average is $21.34 and its 200-day simple moving average is $19.55. The company has a debt-to-equity ratio of 1.08, a current ratio of 2.62 and a quick ratio of 2.24. The firm has a market capitalization of $1.20 billion, a price-to-earnings ratio of -81.46 and a beta of 2.02. Penguin Solutions has a 1-year low of $14.20 and a 1-year high of $25.94.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last issued its quarterly earnings data on Tuesday, July 8th. The company reported $0.47 EPS for the quarter, topping analysts' consensus estimates of $0.30 by $0.17. Penguin Solutions had a negative net margin of 0.68% and a positive return on equity of 13.27%. The business had revenue of $324,251 billion for the quarter, compared to analyst estimates of $330.82 million. As a group, research analysts forecast that Penguin Solutions will post 1.05 EPS for the current fiscal year.

Insider Activity

In other news, EVP Jack A. Pacheco sold 63,447 shares of the business's stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $24.83, for a total transaction of $1,575,389.01. Following the transaction, the executive vice president directly owned 227,231 shares in the company, valued at $5,642,145.73. The trade was a 21.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Penny Herscher sold 2,046 shares of the business's stock in a transaction dated 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 in the company, valued at $463,203.24. This represents a 10.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 66,175 shares of company stock worth $1,644,448 over the last 90 days. 2.60% of the stock is owned by company insiders.

Institutional Trading of Penguin Solutions

Hedge funds and other institutional investors have recently modified their holdings of the stock. Inspire Investing LLC boosted its holdings in Penguin Solutions by 3.6% in the 2nd quarter. Inspire Investing LLC now owns 24,293 shares of the company's stock valued at $481,000 after purchasing an additional 835 shares during the period. Crews Bank & Trust bought a new stake in Penguin Solutions in the 1st quarter valued at about $28,000. CWM LLC boosted its holdings in Penguin Solutions by 82.1% in the 2nd quarter. CWM LLC now owns 4,111 shares of the company's stock valued at $81,000 after purchasing an additional 1,854 shares during the period. State of Alaska Department of Revenue boosted its holdings in Penguin Solutions by 6.3% in the 2nd quarter. State of Alaska Department of Revenue now owns 31,383 shares of the company's stock valued at $621,000 after purchasing an additional 1,855 shares during the period. Finally, IFP Advisors Inc bought a new stake in Penguin Solutions in the 1st quarter valued at about $39,000.

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.