Penguin Solutions (NASDAQ:PENG) Price Target Raised to $31.00 at Stifel Nicolaus

Key Points

• Stifel Nicolaus raised its price target for Penguin Solutions from $27.00 to $31.00, indicating a potential upside of 11.71% from the current price and maintaining a "buy" rating on the stock.
• Recent performance highlights include a positive quarterly earnings report where Penguin Solutions exceeded estimates with an EPS of $0.47, despite a slight revenue miss.
• Insider activity demonstrates significant selling, with executives reducing their ownership stake, raising potential concerns among investors about future performance.

Penguin Solutions (NASDAQ:PENG - Get Free Report) had its price objective hoisted by Stifel Nicolaus from $27.00 to $31.00 in a research report issued to clients and investors on Monday, Marketbeat Ratings reports. The firm currently has a "buy" rating on the stock. Stifel Nicolaus' price objective points to a potential upside of 11.71% from the company's current price.

Several other research analysts also recently weighed in on PENG. Needham & Company LLC lifted their target price on shares of Penguin Solutions from $27.00 to $30.00 and gave the stock a "buy" rating in a research report on Tuesday, July 22nd. The Goldman Sachs Group raised their price target on shares of Penguin Solutions from $22.50 to $25.00 and gave the stock a "buy" rating in a research report on Wednesday, July 9th. JMP Securities reiterated a "market outperform" rating and issued a $26.00 price objective on shares of Penguin Solutions in a research note on Wednesday, July 9th. Loop Capital raised their price objective on shares of Penguin Solutions from $30.00 to $35.00 and gave the stock a "buy" rating in a report on Monday, July 14th. Finally, JPMorgan Chase & Co. boosted their price objective on Penguin Solutions from $21.00 to $24.00 and gave the stock a "neutral" rating in a report on Thursday, July 17th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $28.75.

Penguin Solutions Price Performance

PENG opened at $27.75 on Monday. 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 has a 52-week low of $14.20 and a 52-week high of $28.20. The company has a 50 day moving average of $25.00 and a two-hundred day moving average of $21.19. The company has a market cap of $1.45 billion, a P/E ratio of -99.10 and a beta of 2.20.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last issued its quarterly 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 negative net margin of 0.68% and a positive return on equity of 13.27%. The business had revenue of $324.25 million for the quarter, compared to analysts' expectations of $330.82 million. Penguin Solutions has set its FY 2025 guidance at 1.750-1.850 EPS. On average, analysts expect that Penguin Solutions will post 1.05 earnings per share for the current year.

Insider Activity

In related news, Director Penny Herscher sold 2,046 shares of the company'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 transaction, the director owned 18,222 shares in the company, valued at approximately $463,203.24. This represents a 10.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Jack A. Pacheco sold 63,447 shares of the firm'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 directly owned 227,231 shares of the company's stock, valued at approximately $5,642,145.73. This trade represents a 21.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 66,175 shares of company stock worth $1,644,448. Insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in PENG. Crews Bank & Trust bought a new stake in Penguin Solutions in the first quarter valued at $28,000. Raymond James Financial Inc. bought a new position in shares of Penguin Solutions during the second quarter valued at $37,000. IFP Advisors Inc purchased a new position in shares of Penguin Solutions in the 1st quarter worth about $39,000. CWM LLC bought a new position in Penguin Solutions in the 1st quarter worth about $39,000. Finally, Virtus Advisers LLC purchased a new stake in Penguin Solutions during the 1st quarter valued at about $43,000.

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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