Penguin Solutions (NASDAQ:PENG) Hits New 52-Week High - Time to Buy?

Key Points

• Penguin Solutions reached a new 52-week high of $25.99, closing at $25.78 with a trading volume of 274,225 shares.
• Recent analyst ratings include downgrades to 'hold' by Zacks and a 'buy' rating from Rosenblatt Securities with a target price of $27.00, leading to a consensus rating of "Moderate Buy."
• In Q2, Penguin Solutions reported an EPS of $0.47, exceeding the $0.30 estimate, while setting a FY 2025 guidance of 1.750-1.850 EPS.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report)'s share price hit a new 52-week high on Wednesday . The company traded as high as $25.99 and last traded at $25.78, with a volume of 274225 shares. The stock had previously closed at $24.45.

Wall Street Analyst Weigh In

PENG has been the topic of several recent research reports. Zacks Research downgraded Penguin Solutions from a "strong-buy" rating to a "hold" rating in a report on Monday. JMP Securities restated a "market outperform" rating and set a $26.00 price objective on shares of Penguin Solutions in a research note on Wednesday, July 9th. Rosenblatt Securities restated a "buy" rating and issued a $27.00 target price on shares of Penguin Solutions in a research report on Monday, August 11th. The Goldman Sachs Group lifted their price objective on shares of Penguin Solutions from $22.50 to $25.00 and gave the stock a "buy" rating in a research note on Wednesday, July 9th. Finally, Wall Street Zen cut Penguin Solutions from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 12th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $27.13.

Penguin Solutions Price Performance

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's 50-day moving average price is $23.83 and its 200 day moving average price is $20.17. The firm has a market cap of $1.33 billion, a price-to-earnings ratio of -90.69 and a beta of 2.13.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last posted its earnings results on Tuesday, July 8th. The company reported $0.47 EPS for the quarter, topping 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 business had revenue of $324.25 million during the quarter, compared to the consensus estimate of $330.82 million. Penguin Solutions has set its FY 2025 guidance at 1.750-1.850 EPS. Equities research analysts predict that Penguin Solutions, Inc. will post 1.05 earnings per share for the current year.

Insider Transactions at Penguin Solutions

In related news, Director Penny Herscher sold 2,046 shares of the firm'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 completion of the sale, the director owned 18,222 shares of the company's stock, valued at $463,203.24. This trade represents a 10.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, 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 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 disclosure for this sale can be found here. In the last three months, insiders have sold 66,175 shares of company stock worth $1,644,448. Insiders own 2.60% of the company's stock.

Institutional Investors Weigh In On Penguin Solutions

Several hedge funds and other institutional investors have recently made changes to their positions in PENG. Vanguard Group Inc. bought a new position in shares of Penguin Solutions in the 1st quarter valued at about $111,458,000. Alliancebernstein L.P. acquired a new position in shares of Penguin Solutions during the first quarter worth about $28,919,000. Paradigm Capital Management Inc. NY bought a new position in shares of Penguin Solutions during the 1st quarter worth approximately $19,545,000. Think Investments LP bought a new stake in Penguin Solutions during the 1st quarter worth about $15,713,000. Finally, Charles Schwab Investment Management Inc. bought a new stake 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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