Penguin Solutions' (PENG) Buy Rating Reiterated at Rosenblatt Securities

Key Points

• Penguin Solutions has received a "buy" rating from Rosenblatt Securities, with a price target of $27.00, indicating a potential upside of 16.08% from the current price.
• The company reported earnings of $0.47 per share for the last quarter, exceeding estimates, but had a negative net margin of -0.68%.
• Recent insider sales include significant transactions by EVP Jack A. Pacheco and Director Penny Herscher, indicating a decrease in their ownership stakes.

Rosenblatt Securities reissued their buy rating on shares of Penguin Solutions (NASDAQ:PENG - Free Report) in a report published on Monday morning,Benzinga reports. Rosenblatt Securities currently has a $27.00 target price on the stock.

PENG has been the subject of several other reports. Loop Capital lifted their price objective on Penguin Solutions from $30.00 to $35.00 and gave the stock a "buy" rating in a report on Monday, July 14th. Needham & Company LLC lifted their price objective on Penguin Solutions from $27.00 to $30.00 and gave the stock a "buy" rating in a report on Tuesday, July 22nd. Wall Street Zen downgraded Penguin Solutions from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 12th. The Goldman Sachs Group lifted their price objective on Penguin Solutions from $22.50 to $25.00 and gave the stock a "buy" rating in a report on Wednesday, July 9th. Finally, JPMorgan Chase & Co. lifted their price objective on Penguin Solutions from $21.00 to $24.00 and gave the stock a "neutral" rating in a report on Thursday, July 17th. One analyst has rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $27.13.

Penguin Solutions Stock Down 0.7%

Shares of NASDAQ:PENG traded down $0.18 on Monday, hitting $23.99. 254,489 shares of the company traded hands, compared to its average volume of 869,372. Penguin Solutions has a 52 week low of $14.20 and a 52 week high of $25.94. The company has a quick ratio of 2.24, a current ratio of 2.62 and a debt-to-equity ratio of 1.08. The stock has a 50 day simple moving average of $22.27 and a 200-day simple moving average of $19.75. The company has a market cap of $1.26 billion, a PE ratio of -85.69 and a beta of 2.02.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last issued its quarterly earnings results on Tuesday, July 8th. The company reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.30 by $0.17. Penguin Solutions had a positive return on equity of 13.27% and a negative net margin of 0.68%. The firm had revenue of $324,251 billion during the quarter, compared to the consensus estimate of $330.82 million. As a group, research analysts expect that Penguin Solutions will post 1.05 earnings per share for the current year.

Insider Activity

In related news, EVP Jack A. Pacheco sold 63,447 shares of the business's stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $24.83, for a total transaction of $1,575,389.01. Following the completion of the transaction, the executive vice president directly owned 227,231 shares in the company, valued at approximately $5,642,145.73. The trade was a 21.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Penny Herscher sold 2,046 shares of the business's stock in a transaction that occurred on Tuesday, July 15th. The shares were sold at an average price of $25.42, for a total value of $52,009.32. Following the transaction, the director owned 18,222 shares of the company's stock, valued at approximately $463,203.24. This trade represents a 10.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 66,175 shares of company stock worth $1,644,448 over the last three months. Insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in PENG. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its holdings in Penguin Solutions by 6.2% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 13,545 shares of the company's stock worth $268,000 after purchasing an additional 792 shares in the last quarter. Inspire Investing LLC lifted 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 worth $481,000 after purchasing an additional 835 shares in the last quarter. Crews Bank & Trust purchased a new position in Penguin Solutions in the 1st quarter worth approximately $28,000. CWM LLC lifted its holdings in Penguin Solutions by 82.1% in the 2nd quarter. CWM LLC now owns 4,111 shares of the company's stock worth $81,000 after purchasing an additional 1,854 shares in the last quarter. Finally, State of Alaska Department of Revenue lifted 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 worth $621,000 after purchasing an additional 1,855 shares in the last quarter.

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.