Penguin Solutions (NASDAQ:PENG) Receives Market Outperform Rating from JMP Securities

Key Points

• JMP Securities has reaffirmed a "market outperform" rating for Penguin Solutions (NASDAQ:PENG) with a price target of $26.00, indicating an upside potential of 18.49% from the current trading price.
• Multiple analysts have varying ratings for the stock, with one strong buy, seven buy, two hold, and one sell, leading to an overall consensus of "Moderate Buy" and an average price target of $28.00.
• Despite a recent earnings report showing a higher-than-expected EPS of $0.47, the company reported a negative net margin of 0.68% and a market capitalization of $1.15 billion.

Penguin Solutions (NASDAQ:PENG - Get Free Report)'s stock had its "market outperform" rating reaffirmed by equities research analysts at JMP Securities in a report issued on Wednesday,Benzinga reports. They presently have a $26.00 price target on the stock. JMP Securities' price objective would suggest a potential upside of 18.49% from the company's current price.

Several other equities research analysts have also recently issued reports on the stock. Needham & Company LLC lifted their price objective on shares of Penguin Solutions from $27.00 to $30.00 and gave the company a "buy" rating in a research report on Tuesday, July 22nd. Zacks Research cut shares of Penguin Solutions from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 8th. Stifel Nicolaus lifted their price objective on shares of Penguin Solutions from $27.00 to $31.00 and gave the company a "buy" rating in a research report on Monday. Wall Street Zen cut shares of Penguin Solutions from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 12th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Penguin Solutions from $21.00 to $24.00 and gave the stock a "neutral" rating in a research report on Thursday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $28.00.

Penguin Solutions Stock Performance

Shares of PENG stock opened at $21.94 on Wednesday. Penguin Solutions has a one year low of $14.20 and a one year high of $29.80. The company's 50-day moving average is $25.13 and its 200 day moving average is $21.30. The company has a market capitalization of $1.15 billion, a price-to-earnings ratio of -78.93 and a beta of 2.20. 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 posted its quarterly earnings data on Tuesday, July 8th. The company reported $0.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.30 by $0.17. The company had revenue of $324.25 million for the quarter, compared to the consensus estimate of $330.82 million. Penguin Solutions had a negative net margin of 0.68% and a positive return on equity of 13.27%. Sell-side analysts expect that Penguin Solutions will post 1.05 EPS for the current fiscal year.

Insider Activity

In related news, Director Penny Herscher sold 2,046 shares of Penguin Solutions stock in a transaction dated 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 directly owned 18,222 shares in the company, valued at $463,203.24. The trade was a 10.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Jack A. Pacheco sold 63,447 shares of Penguin Solutions stock in a transaction dated 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 completion of the sale, the executive vice president owned 227,231 shares of the company's stock, valued at $5,642,145.73. The trade was a 21.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 66,175 shares of company stock valued at $1,644,448 over the last 90 days. 2.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Penguin Solutions

Several hedge funds have recently modified their holdings of PENG. Crews Bank & Trust acquired a new position in shares of Penguin Solutions during the first quarter valued at about $28,000. Cambridge Investment Research Advisors Inc. purchased a new stake in Penguin Solutions in the 1st quarter worth approximately $188,000. Allspring Global Investments Holdings LLC purchased a new position in shares of Penguin Solutions during the 1st quarter valued at approximately $779,000. Amalgamated Bank purchased a new position in shares of Penguin Solutions during the 1st quarter valued at approximately $264,000. Finally, New York State Teachers Retirement System purchased a new position in shares of Penguin Solutions during the 1st quarter valued at approximately $248,000.

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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