Penguin Solutions (NASDAQ:PENG) Sees Large Volume Increase - Time to Buy?

Key Points

• Penguin Solutions saw unusually heavy trading volume, with 1.57 million shares changing hands, though the stock still fell to $54.54 from a prior close of $60.41.
• Analyst sentiment remains constructive: several firms raised price targets or reiterated positive ratings, and the stock carries a Moderate Buy consensus with an average target of $63.33.
• The company recently posted better-than-expected earnings and revenue, reporting $0.84 EPS versus $0.63 expected and $478.71 million in revenue versus $407.47 million expected.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) shares saw unusually-strong trading volume on Monday . 1,567,177 shares were traded during trading, a decline of 36% from the previous session's volume of 2,446,750 shares.The stock last traded at $54.54 and had previously closed at $60.41.

Wall Street Analyst Weigh In

Several analysts have recently commented on PENG shares. Weiss Ratings raised shares of Penguin Solutions from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, July 8th. Citizens Jmp lifted their price target on Penguin Solutions from $65.00 to $85.00 and gave the company a "market outperform" rating in a research note on Wednesday, July 8th. Stifel Nicolaus increased their target price on shares of Penguin Solutions from $66.00 to $75.00 and gave the company a "buy" rating in a report on Wednesday, July 8th. Citigroup restated an "outperform" rating on shares of Penguin Solutions in a research note on Wednesday, July 8th. Finally, Wall Street Zen raised Penguin Solutions from a "buy" rating to a "strong-buy" rating in a research report on Saturday. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $63.33.

Penguin Solutions Stock Performance

The company has a quick ratio of 1.10, a current ratio of 1.54 and a debt-to-equity ratio of 0.65. The company has a fifty day moving average price of $61.96 and a 200 day moving average price of $35.72. The stock has a market cap of $2.78 billion, a PE ratio of 38.45 and a beta of 2.83.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last posted its earnings results on Tuesday, July 7th. The company reported $0.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.63 by $0.21. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.The company had revenue of $478.71 million for the quarter, compared to analysts' expectations of $407.47 million. During the same period last year, the firm earned $0.52 earnings per share. Analysts expect that Penguin Solutions, Inc. will post 2.08 earnings per share for the current year.

Insider Transactions at Penguin Solutions

In other Penguin Solutions news, Director Maximiliane C. Straub sold 8,000 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $45.00, for a total transaction of $360,000.00. Following the completion of the transaction, the director owned 58,975 shares of the company's stock, valued at approximately $2,653,875. This trade represents a 11.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP Joseph Gates Clark sold 10,351 shares of the business's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $58.87, for a total transaction of $609,363.37. Following the sale, the senior vice president owned 66,425 shares in the company, valued at approximately $3,910,439.75. This trade represents a 13.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 65,574 shares of company stock worth $3,069,722. 2.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Farther Finance Advisors LLC grew its holdings in Penguin Solutions by 187.0% in the fourth quarter. Farther Finance Advisors LLC now owns 1,452 shares of the company's stock worth $28,000 after purchasing an additional 946 shares during the period. Kestra Advisory Services LLC purchased a new position in shares of Penguin Solutions during the fourth quarter valued at approximately $29,000. Allworth Financial LP grew its stake in shares of Penguin Solutions by 41.4% in the 3rd quarter. Allworth Financial LP now owns 1,792 shares of the company's stock worth $47,000 after buying an additional 525 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in shares of Penguin Solutions in the 2nd quarter worth approximately $37,000. Finally, Advisory Services Network LLC bought a new position in Penguin Solutions during the 3rd quarter valued at approximately $50,000.

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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