Penguin Solutions (NASDAQ:PENG) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Penguin Solutions from a "strong-buy" to a "hold" rating, reflecting a potential shift in investor sentiment.
• Despite the downgrade, other firms like Rosenblatt Securities and Loop Capital maintain buy ratings for the stock, with target prices ranging from $27.00 to $35.00.
• Insider selling has been notable, with executives selling over 66,000 shares recently, indicating possible concerns within the company's leadership.

Penguin Solutions (NASDAQ:PENG - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Monday,Zacks.com reports.

Several other research firms have also recently commented on PENG. Rosenblatt Securities reissued a "buy" rating and issued a $27.00 target price on shares of Penguin Solutions in a research note on Monday, August 11th. Loop Capital increased their price target on Penguin Solutions from $30.00 to $35.00 and gave the company a "buy" rating in a research note on Monday, July 14th. The Goldman Sachs Group increased their price target on 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 reissued a "market outperform" rating and issued a $26.00 price target on shares of Penguin Solutions in a research note on Wednesday, July 9th. Finally, Wall Street Zen downgraded Penguin Solutions from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 12th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $27.13.

Penguin Solutions Stock Up 2.8%

Shares of PENG opened at $25.13 on Monday. The company has a market capitalization of $1.32 billion, a P/E ratio of -88.18 and a beta of 2.13. The company has a debt-to-equity ratio of 1.08, a current ratio of 2.62 and a quick ratio of 2.24. Penguin Solutions has a one year low of $14.20 and a one year high of $25.94. The business's 50 day simple moving average is $23.83 and its 200-day simple moving average is $20.17.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last posted its quarterly earnings data on Tuesday, July 8th. The company reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.17. The firm had revenue of $324.25 million for the quarter, compared to the consensus estimate of $330.82 million. Penguin Solutions had a positive return on equity of 13.27% and a negative net margin of 0.68%. Penguin Solutions has set its FY 2025 guidance at 1.750-1.850 EPS. As a group, sell-side analysts predict that Penguin Solutions will post 1.05 EPS for the current fiscal year.

Insider Activity

In other Penguin Solutions news, EVP Jack A. Pacheco sold 63,447 shares of Penguin Solutions stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $24.83, for a total value of $1,575,389.01. Following the sale, the executive vice president owned 227,231 shares of the company's stock, valued at $5,642,145.73. This trade represents a 21.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Penny Herscher sold 2,046 shares of Penguin Solutions stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $25.42, for a total value of $52,009.32. Following the completion of the sale, the director directly owned 18,222 shares in the company, valued at $463,203.24. This represents a 10.09% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 66,175 shares of company stock worth $1,644,448. Corporate insiders own 2.60% of the company's stock.

Institutional Trading of Penguin Solutions

Hedge funds and other institutional investors have recently modified their holdings of the company. New York State Teachers Retirement System acquired a new stake in shares of Penguin Solutions in the 1st quarter valued at about $248,000. Allspring Global Investments Holdings LLC acquired a new stake in shares of Penguin Solutions in the first quarter valued at about $779,000. Cambridge Investment Research Advisors Inc. acquired a new stake in shares of Penguin Solutions in the first quarter valued at about $188,000. Principal Financial Group Inc. acquired a new stake in shares of Penguin Solutions in the first quarter valued at about $4,608,000. Finally, Charles Schwab Investment Management Inc. bought a new position in Penguin Solutions during the first quarter worth about $14,786,000.

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.

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