Penguin Solutions (NASDAQ:PENG) Rating Lowered to Equal Weight at Barclays

Key Points

• Barclays downgraded Penguin Solutions from "overweight" to "equal weight" and set a $27.00 price target, implying roughly a 3.3% downside from the current share price.
• Analyst sentiment remains mildly positive with a consensus rating of "Moderate Buy" (1 Strong Buy, 6 Buy, 3 Hold) and a consensus target of $27.25.
• Penguin beat estimates last quarter with $0.52 EPS vs. $0.43 expected and $343M revenue vs. $339M expected, while insiders sold about 22,892 shares (~$513,627) over the past three months even as institutions like RBC and Goldman added positions.

Penguin Solutions (NASDAQ:PENG - Get Free Report) was downgraded by Barclays from an "overweight" rating to an "equal weight" rating in a research note issued to investors on Wednesday, MarketBeat Ratings reports. They presently have a $27.00 price objective on the stock. Barclays's price objective would indicate a potential downside of 3.30% from the company's current price.

Other equities analysts have also issued reports about the stock. Weiss Ratings raised shares of Penguin Solutions from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, April 6th. Zacks Research raised shares of Penguin Solutions from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 7th. Needham & Company LLC boosted their price target on shares of Penguin Solutions from $25.00 to $27.00 and gave the stock a "buy" rating in a research report on Thursday, April 2nd. Rosenblatt Securities reissued a "buy" rating and set a $30.00 price target on shares of Penguin Solutions in a research report on Monday, March 30th. Finally, Wall Street Zen raised shares of Penguin Solutions from a "hold" rating to a "buy" rating in a research report on Saturday, February 21st. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $27.25.

Penguin Solutions Price Performance

Shares of NASDAQ PENG opened at $27.92 on Wednesday. The firm has a market cap of $1.42 billion, a PE ratio of 38.78 and a beta of 2.23. The company has a current ratio of 2.10, a quick ratio of 1.55 and a debt-to-equity ratio of 1.09. Penguin Solutions has a 1-year low of $15.66 and a 1-year high of $29.80. The company has a fifty day moving average price of $20.10 and a 200 day moving average price of $20.44.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last announced its earnings results on Wednesday, April 1st. The company reported $0.52 earnings per share for the quarter, topping analysts' consensus estimates of $0.43 by $0.09. The firm had revenue of $343.00 million during 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%. Research analysts predict that Penguin Solutions will post 1.66 earnings per share for the current fiscal year.

Insider Activity

In other Penguin Solutions news, SVP Joseph Gates Clark sold 5,000 shares of the business's stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $26.82, for a total transaction of $134,100.00. Following the sale, the senior vice president directly owned 95,549 shares of the company's stock, valued at $2,562,624.18. The trade was a 4.97% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Anne Kuykendall sold 4,000 shares of the business's stock in a transaction dated Monday, March 16th. The stock was 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 in the company, valued at $2,331,498. This represents a 2.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 22,892 shares of company stock worth $513,627 over the last three months. Insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of PENG. Royal Bank of Canada acquired a new position in shares of Penguin Solutions during the 1st quarter worth about $7,250,000. Amundi acquired a new position in shares of Penguin Solutions during the 1st quarter worth about $373,000. AQR Capital Management LLC acquired a new position in shares of Penguin Solutions during the 1st quarter worth about $1,076,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of Penguin Solutions during the 1st quarter worth about $538,000. Finally, Goldman Sachs Group Inc. acquired a new position in shares of Penguin Solutions during the 1st quarter worth about $3,259,000.

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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