Penguin Solutions (NASDAQ:PENG) Issues Earnings Results

Key Points

• Penguin Solutions reported earnings of $0.30 per share, missing estimates of $0.37, and exhibited a return on equity of 13.27% alongside a negative net margin of 0.68%.
• The company's stock dropped 7.8% to $27.00 following the earnings report, despite trading volume significantly exceeding its average.
• Analysts have a consensus rating of Moderate Buy for Penguin Solutions, with price targets ranging from $21.00 to $35.00.

Penguin Solutions (NASDAQ:PENG - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.30 earnings per share for the quarter, missing analysts' consensus estimates of $0.37 by ($0.07), Zacks reports. Penguin Solutions had a positive return on equity of 13.27% and a negative net margin of 0.68%.

Penguin Solutions Stock Down 7.8%

NASDAQ:PENG traded down $2.30 on Tuesday, hitting $27.00. 3,579,662 shares of the company's stock traded hands, compared to its average volume of 899,036. The firm has a 50-day moving average price of $25.08 and a 200-day moving average price of $21.26. Penguin Solutions has a 1 year low of $14.20 and a 1 year high of $29.80. The company has a market cap of $1.41 billion, a PE ratio of -96.43 and a beta of 2.20. The company has a current ratio of 2.62, a quick ratio of 2.24 and a debt-to-equity ratio of 1.08.

Insider Buying and Selling

In related news, Director Penny Herscher sold 2,046 shares of the business's stock in a transaction that occurred 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 sale, the director owned 18,222 shares of the company's stock, valued at approximately $463,203.24. The trade was a 10.09% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Jack A. Pacheco sold 63,447 shares of the stock in a transaction that occurred 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 completion of the transaction, the executive vice president owned 227,231 shares in the company, valued at $5,642,145.73. This represents a 21.83% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 66,175 shares of company stock valued at $1,644,448. Insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Raymond James Financial Inc. acquired a new stake in shares of Penguin Solutions in the 2nd quarter valued at $37,000. Osaic Holdings Inc. lifted its position in shares of Penguin Solutions by 20.8% in the second quarter. Osaic Holdings Inc. now owns 3,583 shares of the company's stock worth $71,000 after buying an additional 617 shares during the last quarter. Globeflex Capital L P acquired a new stake in shares of Penguin Solutions in the second quarter worth about $105,000. Tower Research Capital LLC TRC boosted its stake in shares of Penguin Solutions by 400.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,258 shares of the company's stock worth $124,000 after acquiring an additional 5,008 shares in the last quarter. Finally, Tidal Investments LLC acquired a new position in shares of Penguin Solutions during the 2nd quarter valued at about $203,000.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on PENG shares. The Goldman Sachs Group increased their price target on Penguin Solutions from $22.50 to $25.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Stifel Nicolaus boosted their price target on shares of Penguin Solutions from $27.00 to $31.00 and gave the stock a "buy" rating in a research report on Monday. Loop Capital raised their price objective on shares of Penguin Solutions from $30.00 to $35.00 and gave the company a "buy" rating in a research report on Monday, July 14th. Needham & Company LLC boosted their target price on shares of Penguin Solutions from $27.00 to $30.00 and gave the stock a "buy" rating in a report on Tuesday, July 22nd. Finally, JPMorgan Chase & Co. upped 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. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $28.75.

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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