Penguin Solutions (NASDAQ:PENG) Hits New 1-Year High - Should You Buy?

Key Points

• PENG hit a new 52-week high, trading as high as $31.89 (last $31.31) on Monday with ~166,635 shares changing hands, despite a MarketBeat consensus price target of $27.25.
• Earnings beat: the company reported Q EPS of $0.52 versus a $0.43 estimate and revenue of $343M versus $339M, with a 4.07% net margin and 19.94% return on equity.
• Analyst and investor activity is mixed: the consensus rating is "Moderate Buy" (1 Strong Buy, 6 Buy, 3 Hold), major institutional buyers (e.g., Invesco, Dimensional) have increased positions, while insiders sold ~30,115 shares in the last 90 days.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report)'s stock price hit a new 52-week high during trading on Monday . The company traded as high as $31.89 and last traded at $31.3080, with a volume of 166635 shares traded. The stock had previously closed at $31.24.

Analysts Set New Price Targets

PENG has been the topic of a number of research analyst reports. Weiss Ratings raised shares of Penguin Solutions from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, April 6th. Zacks Research raised shares of Penguin Solutions from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 7th. Stifel Nicolaus decreased their price objective on shares of Penguin Solutions from $27.00 to $24.00 and set a "buy" rating on the stock in a report on Thursday, April 2nd. Wall Street Zen raised shares of Penguin Solutions from a "hold" rating to a "buy" rating in a report on Saturday, February 21st. Finally, Rosenblatt Securities reissued a "buy" rating and set a $30.00 price objective on shares of Penguin Solutions in a report on Monday, March 30th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $27.25.

Penguin Solutions Stock Up 3.9%

The company has a market cap of $1.65 billion, a P/E ratio of 45.06 and a beta of 2.66. The company has a current ratio of 2.10, a quick ratio of 1.55 and a debt-to-equity ratio of 1.09. The firm's 50 day moving average price is $21.47 and its 200-day moving average price is $20.69.

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

Insider Activity

In related 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 owned 99,726 shares of the company's stock, valued at $2,248,821.30. This trade represents a 11.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the business's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $17.75, for a total transaction of $71,000.00. Following the transaction, the senior vice president owned 131,352 shares of the company's stock, valued at approximately $2,331,498. This represents a 2.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 30,115 shares of company stock worth $723,997 in the last ninety days. Insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Penguin Solutions

Several institutional investors and hedge funds have recently made changes to their positions in PENG. Dimensional Fund Advisors LP acquired a new stake in Penguin Solutions during the 3rd quarter worth $60,264,000. Invesco Ltd. lifted its holdings in shares of Penguin Solutions by 596.8% during the 4th quarter. Invesco Ltd. now owns 1,992,415 shares of the company's stock valued at $38,972,000 after purchasing an additional 1,706,482 shares in the last quarter. William Blair Investment Management LLC acquired a new position in shares of Penguin Solutions in the 4th quarter valued at approximately $18,290,000. Ophir Asset Management Pty Ltd increased its stake in Penguin Solutions by 234.3% during the 4th quarter. Ophir Asset Management Pty Ltd now owns 1,211,612 shares of the company's stock worth $23,699,000 after purchasing an additional 849,178 shares in the last quarter. Finally, ArrowMark Colorado Holdings LLC bought a new stake in Penguin Solutions during the 3rd quarter worth approximately $15,789,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.