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

Key Points

• Penguin Solutions has a consensus analyst rating of “Moderate Buy”, based on coverage from 10 firms. The average 12-month price target is about $57.71, with most analysts rating the stock a buy or better.
• The company reported strong quarterly results, posting EPS of $0.84 versus the $0.63 estimate and revenue of $478.71 million versus the $407.47 million expected. Analysts currently forecast full-year EPS of 2.08.
• Despite the upbeat outlook, PENG shares fell 6.4% in the session described, even after several analysts raised price targets. Insider sales were also noted, though institutional investors such as State Street, Dimensional, and Invesco increased their holdings.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) has earned a consensus rating of "Moderate Buy" from the ten research firms that are currently covering the company, Marketbeat reports. Three analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $57.7143.

A number of equities research analysts have recently commented on PENG shares. Stifel Nicolaus raised their price objective on shares of Penguin Solutions from $66.00 to $75.00 and gave the stock a "buy" rating in a research note on Wednesday, July 8th. Needham & Company LLC boosted their target price on shares of Penguin Solutions from $60.00 to $80.00 and gave the company a "buy" rating in a research note on Wednesday, July 8th. Rosenblatt Securities raised their price target on shares of Penguin Solutions from $65.00 to $75.00 and gave the company a "buy" rating in a research report on Monday, July 6th. Citizens Jmp lifted their price objective on shares of Penguin Solutions from $65.00 to $85.00 and gave the company a "market outperform" rating in a report on Wednesday, July 8th. Finally, Barclays upped their price objective on shares of Penguin Solutions from $27.00 to $40.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 9th.

Penguin Solutions Stock Down 6.4%

Shares of PENG opened at $72.85 on Thursday. The company has a market capitalization of $3.73 billion, a price-to-earnings ratio of 51.67 and a beta of 2.83. Penguin Solutions has a 52 week low of $16.04 and a 52 week high of $89.86. The stock's 50-day moving average price is $61.09 and its 200-day moving average price is $35.11. The company has a quick ratio of 1.10, a current ratio of 1.54 and a debt-to-equity ratio of 0.65.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last announced its quarterly earnings results on Tuesday, July 7th. The company reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.63 by $0.21. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.The company had revenue of $478.71 million during the quarter, compared to analysts' expectations of $407.47 million. During the same period last year, the business earned $0.52 earnings per share. On average, sell-side analysts predict that Penguin Solutions will post 2.08 EPS for the current year.

Insiders Place Their Bets

In related news, SVP Joseph Gates Clark sold 10,351 shares of the company's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $58.87, for a total value of $609,363.37. Following the completion of the transaction, the senior vice president owned 66,425 shares of the company's stock, valued at approximately $3,910,439.75. This represents a 13.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $64.38, for a total value of $257,520.00. Following the completion of the sale, the senior vice president directly owned 120,794 shares in the company, valued at approximately $7,776,717.72. The trade was a 3.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 65,574 shares of company stock worth $3,069,722 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 large investors have recently added to or reduced their stakes in PENG. State Street Corp lifted its stake in Penguin Solutions by 3.2% in the 4th quarter. State Street Corp now owns 2,957,938 shares of the company's stock valued at $57,857,000 after buying an additional 91,805 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in Penguin Solutions by 4.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,388,748 shares of the company's stock worth $46,726,000 after buying an additional 95,585 shares in the last quarter. Invesco Ltd. increased its stake in Penguin Solutions by 596.8% during the 4th quarter. Invesco Ltd. now owns 1,992,415 shares of the company's stock worth $38,972,000 after buying an additional 1,706,482 shares in the last quarter. Paradigm Capital Management Inc. NY raised its holdings in shares of Penguin Solutions by 73.8% during the first quarter. Paradigm Capital Management Inc. NY now owns 1,605,100 shares of the company's stock valued at $28,250,000 after acquiring an additional 681,700 shares during the last quarter. Finally, Ophir Asset Management Pty Ltd raised its holdings in shares of Penguin Solutions by 234.3% during the fourth quarter. Ophir Asset Management Pty Ltd now owns 1,211,612 shares of the company's stock valued at $23,699,000 after acquiring an additional 849,178 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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