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

Key Points

• Analysts maintain a “Moderate Buy” consensus on Penguin Solutions, with six buy ratings, one strong buy, one hold and one sell. The average 12-month price target is $63.33, while several firms recently raised their targets to as high as $85.
• Penguin Solutions reported a strong quarterly performance, posting $0.84 in EPS versus the $0.63 consensus and revenue of $478.71 million, well above estimates of $407.47 million.
• The stock opened at $58.43 and has a wide 12-month range of $16.04 to $89.86. Insiders sold 33,785 shares worth approximately $1.79 million over the last quarter, while institutional investors made several modest additions to their holdings.

Shares of Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) have earned an average recommendation of "Moderate Buy" from the nine brokerages that are currently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation, six have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $63.3333.

A number of analysts have recently commented on PENG shares. Citizens Jmp upped their price target on Penguin Solutions from $65.00 to $85.00 and gave the company a "market outperform" rating in a research note on Wednesday, July 8th. Rosenblatt Securities lifted their price objective on shares of Penguin Solutions from $65.00 to $75.00 and gave the stock a "buy" rating in a research note on Monday, July 6th. Zacks Research upgraded shares of Penguin Solutions from a "hold" rating to a "strong-buy" rating in a report on Tuesday, June 30th. Wall Street Zen lowered shares of Penguin Solutions from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 26th. Finally, Weiss Ratings raised shares of Penguin Solutions from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, July 8th.

Penguin Solutions Price Performance

NASDAQ:PENG opened at $58.43 on Monday. Penguin Solutions has a 12-month low of $16.04 and a 12-month high of $89.86. The company has a quick ratio of 1.10, a current ratio of 1.54 and a debt-to-equity ratio of 0.65. The firm has a market capitalization of $2.99 billion, a P/E ratio of 41.44 and a beta of 2.87. The stock's fifty day simple moving average is $63.27 and its 200-day simple moving average is $39.33.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last released its quarterly earnings data on Tuesday, July 7th. The company reported $0.84 EPS for the quarter, beating analysts' consensus estimates of $0.63 by $0.21. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.The business had revenue of $478.71 million during the quarter, compared to the consensus estimate of $407.47 million. During the same quarter in the prior year, the company posted $0.52 earnings per share. Equities research analysts expect that Penguin Solutions will post 2.08 earnings per share for the current year.

Insiders Place Their Bets

In other Penguin Solutions news, SVP Joseph Gates Clark sold 1,327 shares of Penguin Solutions stock in a transaction dated Thursday, July 23rd. The stock was sold at an average price of $57.47, for a total transaction of $76,262.69. Following the transaction, the senior vice president directly owned 63,056 shares in the company, valued at approximately $3,623,828.32. The trade was a 2.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sandeep Nayyar sold 7,107 shares of the business's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $43.48, for a total value of $309,012.36. Following the completion of the transaction, the director directly owned 25,417 shares of the company's stock, valued at approximately $1,105,131.16. The trade was a 21.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 33,785 shares of company stock worth $1,794,318. 2.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Penguin Solutions

Several institutional investors and hedge funds have recently modified their holdings of the business. Global Retirement Partners LLC bought a new stake in Penguin Solutions in the 2nd quarter valued at $26,000. Osaic Holdings Inc. increased its holdings in Penguin Solutions by 20.8% during the 2nd quarter. Osaic Holdings Inc. now owns 3,583 shares of the company's stock worth $71,000 after purchasing an additional 617 shares in the last quarter. Covestor Ltd increased its holdings in Penguin Solutions by 4.7% during the 4th quarter. Covestor Ltd now owns 15,535 shares of the company's stock worth $304,000 after purchasing an additional 695 shares in the last quarter. M&T Bank Corp raised its stake in shares of Penguin Solutions by 7.0% in the 4th quarter. M&T Bank Corp now owns 10,851 shares of the company's stock valued at $212,000 after purchasing an additional 706 shares during the period. Finally, Optimize Financial Inc raised its stake in shares of Penguin Solutions by 1.5% in the 4th quarter. Optimize Financial Inc now owns 56,354 shares of the company's stock valued at $1,102,000 after purchasing an additional 808 shares during the period.

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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