Penguin Solutions (NASDAQ:PENG) Hits New 12-Month High - Here's Why

Key Points

• Penguin Solutions (NASDAQ:PENG) has reached a new 12-month high at $26.75, with a trading volume of 169,206 shares.
• Analysts have varied opinions on the stock, with one strong buy, seven buy ratings, and two hold ratings, and an average price target of $27.13.
• Recent insider selling has seen executives offload over 66,000 shares in the past 90 days, indicating potential caution among company leaders.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) hit a new 52-week high on Wednesday . The company traded as high as $26.75 and last traded at $26.75, with a volume of 169206 shares trading hands. The stock had previously closed at $26.33.

Analyst Ratings Changes

A number of brokerages have recently weighed in on PENG. Wall Street Zen cut Penguin Solutions from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 12th. JMP Securities reissued a "market outperform" rating and set a $26.00 target price on shares of Penguin Solutions in a research note on Wednesday, July 9th. Needham & Company LLC boosted their target price on Penguin Solutions from $27.00 to $30.00 and gave the stock a "buy" rating in a research note on Tuesday, July 22nd. Zacks Research cut Penguin Solutions from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 8th. Finally, Loop Capital boosted their target price on Penguin Solutions from $30.00 to $35.00 and gave the stock a "buy" rating in a research note on Monday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Penguin Solutions has an average rating of "Moderate Buy" and an average target price of $27.13.

Penguin Solutions Trading Down 0.5%

The business has a fifty day simple moving average of $24.55 and a 200 day simple moving average of $20.54. The stock has a market cap of $1.44 billion, a price-to-earnings ratio of -98.32 and a beta of 2.13. The company has a debt-to-equity ratio of 1.08, a quick ratio of 2.24 and a current ratio of 2.62.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last announced its earnings results on Tuesday, July 8th. The company reported $0.47 EPS for the quarter, beating analysts' consensus estimates of $0.30 by $0.17. The firm had revenue of $324.25 million for the quarter, compared to analysts' expectations of $330.82 million. Penguin Solutions had a positive return on equity of 13.27% and a negative net margin of 0.68%. Penguin Solutions has set its FY 2025 guidance at 1.750-1.850 EPS. As a group, equities analysts anticipate that Penguin Solutions, Inc. will post 1.05 EPS for the current year.

Insiders Place Their Bets

In other Penguin Solutions news, Director Penny Herscher sold 2,046 shares of the stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $25.42, for a total transaction of $52,009.32. Following the sale, the director owned 18,222 shares in the company, valued at approximately $463,203.24. This represents a 10.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Jack A. Pacheco sold 63,447 shares of the stock in a transaction on Monday, July 21st. The shares were sold at an average price of $24.83, for a total value of $1,575,389.01. Following the sale, the executive vice president owned 227,231 shares in the company, valued at approximately $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 quarter, insiders have sold 66,175 shares of company stock worth $1,644,448. 2.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Penguin Solutions

Hedge funds have recently made changes to their positions in the business. Crews Bank & Trust acquired a new stake in shares of Penguin Solutions during the first quarter worth $28,000. Raymond James Financial Inc. acquired a new stake in shares of Penguin Solutions during the second quarter worth $37,000. IFP Advisors Inc acquired a new stake in shares of Penguin Solutions during the first quarter worth $39,000. UMB Bank n.a. acquired a new stake in shares of Penguin Solutions during the second quarter worth $44,000. Finally, CWM LLC purchased a new position in shares of Penguin Solutions in the 1st quarter worth $39,000.

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.