Penguin Solutions (NASDAQ:PENG) Reaches New 1-Year High - Here's What Happened

Key Points

• 52-week high: Penguin Solutions shares hit a new 52-week high of $30.72 (last $30.69) during mid-day trading, up about 11.2% from the prior close of $27.61 on volume of 2,503,613 shares.
• Analysts are generally positive with a consensus “Moderate Buy” rating and an average price target of $27.25 (1 Strong Buy, 6 Buy, 3 Hold), with recent upgrades from Zacks and Wall Street Zen and a mixed action from Barclays.
• Fundamentals and flows: Penguin posted an earnings beat (Q1 EPS $0.52 vs $0.43; revenue $343M vs $339M), has a $1.56B market cap and P/E of 42.6, while insiders sold ~23,630 shares in the past three months even as major institutions like Vanguard, State Street and Invesco increased stakes.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Saturday . The company traded as high as $30.72 and last traded at $30.69, with a volume of 2503613 shares traded. The stock had previously closed at $27.61.

Wall Street Analysts Forecast Growth

PENG has been the subject of a number of analyst reports. Zacks Research raised shares of Penguin Solutions from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 7th. Weiss Ratings raised Penguin Solutions from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, April 6th. Rosenblatt Securities reiterated a "buy" rating and set a $30.00 price objective on shares of Penguin Solutions in a report on Monday, March 30th. Barclays cut Penguin Solutions from an "overweight" rating to an "equal weight" rating and raised their price objective for the stock from $23.00 to $27.00 in a research report on Wednesday. Finally, Wall Street Zen upgraded Penguin Solutions from a "hold" rating to a "buy" rating in a research note on Saturday, February 21st. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $27.25.

Penguin Solutions Stock Up 11.2%

The company has a market capitalization of $1.56 billion, a price-to-earnings ratio of 42.63 and a beta of 2.23. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.55 and a current ratio of 2.10. The business's 50 day moving average is $20.68 and its 200 day moving average is $20.55.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last issued its quarterly earnings results on Wednesday, April 1st. The company reported $0.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.43 by $0.09. The business 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%. Sell-side analysts anticipate that Penguin Solutions, Inc. will post 1.66 earnings per share for the current year.

Insider Buying and Selling at Penguin Solutions

In related news, SVP Anne Kuykendall sold 4,000 shares of the firm's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $17.75, for a total value of $71,000.00. Following the completion of the transaction, the senior vice president owned 131,352 shares in the company, valued at $2,331,498. This trade represents a 2.96% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Joseph Gates Clark sold 12,546 shares of Penguin Solutions stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $22.55, for a total value of $282,912.30. Following the sale, the senior vice president directly owned 99,726 shares of the company's stock, valued at approximately $2,248,821.30. This represents a 11.17% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 23,630 shares of company stock worth $534,232. 2.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Penguin Solutions

Several hedge funds and other institutional investors have recently bought and sold shares of PENG. Vanguard Group Inc. lifted its stake in Penguin Solutions by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 6,592,564 shares of the company's stock valued at $173,253,000 after acquiring an additional 25,804 shares during the period. State Street Corp raised its holdings in shares of Penguin Solutions by 3.2% during the fourth quarter. State Street Corp now owns 2,957,938 shares of the company's stock worth $57,857,000 after purchasing an additional 91,805 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in Penguin Solutions by 4.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,388,748 shares of the company's stock valued at $46,726,000 after purchasing an additional 95,585 shares during the period. Invesco Ltd. lifted its position in Penguin Solutions by 596.8% during the fourth 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 during the period. Finally, American Century Companies Inc. boosted its holdings in Penguin Solutions by 35.3% in the third quarter. American Century Companies Inc. now owns 1,294,279 shares of the company's stock valued at $34,014,000 after purchasing an additional 337,564 shares during the last quarter.

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.

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.