Penguin Solutions (NASDAQ:PENG) Given New $65.00 Price Target at Rosenblatt Securities

Key Points

• Rosenblatt Securities raised its price target on Penguin Solutions from $54 to $65 and kept a buy rating on the stock.
• Shares of Penguin Solutions surged 27.2% in Tuesday trading, reaching $71.03, well above its 50-day and 200-day moving averages.
• The company recently beat quarterly expectations, reporting EPS of $0.52 versus estimates of $0.43 and revenue of $343 million versus $339 million expected.

Penguin Solutions (NASDAQ:PENG - Get Free Report) had its target price lifted by research analysts at Rosenblatt Securities from $54.00 to $65.00 in a research report issued on Tuesday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Rosenblatt Securities' target price points to a potential downside of 8.48% from the company's previous close.

Several other analysts have also recently issued reports on the company. Zacks Research upgraded shares of Penguin Solutions from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, April 7th. Needham & Company LLC upped their price target on shares of Penguin Solutions from $25.00 to $27.00 and gave the company a "buy" rating in a report on Thursday, April 2nd. Weiss Ratings cut Penguin Solutions from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, May 13th. Barclays cut shares of Penguin Solutions from an "overweight" rating to an "equal weight" rating and upped their price target for the stock from $23.00 to $27.00 in a research report on Wednesday, April 22nd. Finally, Wall Street Zen raised shares of Penguin Solutions from a "hold" rating to a "buy" rating in a research report on Sunday, May 17th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Penguin Solutions presently has a consensus rating of "Moderate Buy" and a consensus target price of $36.88.

Penguin Solutions Trading Up 27.2%

Shares of NASDAQ:PENG traded up $15.20 during midday trading on Tuesday, hitting $71.03. 3,070,753 shares of the stock traded hands, compared to its average volume of 3,786,902. The stock has a market capitalization of $3.60 billion, a PE ratio of 82.93 and a beta of 2.66. The business's 50 day moving average is $33.21 and its two-hundred day moving average is $24.37. The company has a quick ratio of 1.55, a current ratio of 2.10 and a debt-to-equity ratio of 1.09. Penguin Solutions has a one year low of $16.04 and a one year high of $61.25.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last released its quarterly earnings results on Wednesday, April 1st. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.43 by $0.09. Penguin Solutions had a net margin of 4.07% and a return on equity of 19.94%. The company had revenue of $343.00 million during the quarter, compared to the consensus estimate of $339.00 million. As a group, research analysts forecast that Penguin Solutions will post 1.66 earnings per share for the current year.

Insider Activity at Penguin Solutions

In other Penguin Solutions news, SVP Joseph Gates Clark sold 12,546 shares of Penguin Solutions stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $22.55, for a total transaction of $282,912.30. Following the transaction, the senior vice president directly owned 99,726 shares of the company's stock, valued at $2,248,821.30. The trade was a 11.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Maximiliane C. Straub sold 8,000 shares of Penguin Solutions stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $45.00, for a total transaction of $360,000.00. Following the sale, the director owned 58,975 shares in the company, valued at $2,653,875. This represents a 11.94% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 72,769 shares of company stock worth $2,690,851. 2.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Penguin Solutions

Several institutional investors have recently modified their holdings of the company. California State Teachers Retirement System grew its holdings in Penguin Solutions by 52.8% during the first quarter. California State Teachers Retirement System now owns 74,580 shares of the company's stock valued at $1,313,000 after purchasing an additional 25,763 shares during the last quarter. Maverick Capital Ltd. bought a new position in Penguin Solutions in the first quarter worth $771,000. Quantinno Capital Management LP lifted its position in Penguin Solutions by 16.6% in the first quarter. Quantinno Capital Management LP now owns 28,318 shares of the company's stock worth $498,000 after purchasing an additional 4,036 shares during the period. Paradigm Capital Management Inc. NY lifted 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 period. Finally, Inceptionr LLC bought a new position in shares of Penguin Solutions during the first quarter valued at $339,000.

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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