Penguin Solutions (NASDAQ:PENG) Given Buy Rating 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.

Penguin Solutions (NASDAQ:PENG - Get Free Report)'s stock had its "buy" rating restated by equities researchers at Rosenblatt Securities in a note issued to investors on Monday,Benzinga reports. They currently have a $27.00 price objective on the stock. Rosenblatt Securities' target price points to a potential upside of 16.08% from the company's current price.

Several other equities research analysts also recently commented on PENG. 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 raised their price target on Penguin Solutions from $22.50 to $25.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. Loop Capital raised their price target on Penguin Solutions from $30.00 to $35.00 and gave the company a "buy" rating in a report on Monday, July 14th. JPMorgan Chase & Co. raised their price target on Penguin Solutions from $21.00 to $24.00 and gave the company a "neutral" rating in a report on Thursday, July 17th. Finally, JMP Securities reaffirmed a "market outperform" rating and set a $26.00 price target on shares of Penguin Solutions in a report on Wednesday, July 9th. One analyst has rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $27.13.

Penguin Solutions Price Performance

Shares of PENG opened at $23.26 on Monday. The stock has a market capitalization of $1.22 billion, a P/E ratio of -83.07 and a beta of 2.02. Penguin Solutions has a twelve month low of $14.20 and a twelve month high of $25.94. The company has a 50 day moving average of $21.87 and a 200-day moving average of $19.63. The company has a quick ratio of 2.24, a current ratio of 2.62 and a debt-to-equity ratio of 1.08.

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, topping the consensus estimate of $0.30 by $0.17. The company had revenue of $324,251 billion during the quarter, compared to analysts' expectations of $330.82 million. Penguin Solutions had a negative net margin of 0.68% and a positive return on equity of 13.27%. As a group, equities research analysts forecast that Penguin Solutions will post 1.05 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Jack A. Pacheco sold 63,447 shares of the firm's stock in a transaction on 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 transaction, the executive vice president owned 227,231 shares in the company, valued at approximately $5,642,145.73. This trade represents a 21.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Penny Herscher sold 2,046 shares of the firm's stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $25.42, for a total value of $52,009.32. Following the completion of the transaction, the director owned 18,222 shares in the company, valued at $463,203.24. The trade was a 10.09% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 66,175 shares of company stock valued at $1,644,448 in the last three months. Insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of PENG. Vanguard Group Inc. bought a new stake in shares of Penguin Solutions during the first quarter worth about $111,458,000. Alliancebernstein L.P. acquired a new position in shares of Penguin Solutions in the first quarter worth approximately $28,919,000. Paradigm Capital Management Inc. NY acquired a new position in shares of Penguin Solutions in the first quarter worth approximately $19,545,000. Think Investments LP acquired a new position in shares of Penguin Solutions in the first quarter worth approximately $15,713,000. Finally, Charles Schwab Investment Management Inc. acquired a new position in shares of Penguin Solutions in the first quarter worth approximately $14,786,000.

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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