Penguin Solutions (NASDAQ:PENG) Sets New 1-Year High - Should You Buy?

Key Points

• Penguin Solutions hit a new 52-week high, trading as high as $46.75, even though the stock was still well above its recent average levels.
• Recent analyst moves were mixed: some firms cut price targets or downgraded the stock, but the consensus rating remains Moderate Buy with an average target price of $27.25.
• The company recently posted better-than-expected earnings, reporting $0.52 EPS versus $0.43 expected and revenue of $343 million versus $339 million estimated.

Shares of Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) reached a new 52-week high on Monday . The company traded as high as $46.75 and last traded at $44.6950, with a volume of 478948 shares. The stock had previously closed at $44.23.

Wall Street Analyst Weigh In

Several brokerages recently commented on PENG. Stifel Nicolaus reduced their price target on Penguin Solutions from $27.00 to $24.00 and set a "buy" rating for the company in a research report on Thursday, April 2nd. Weiss Ratings raised Penguin Solutions from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, April 6th. Barclays lowered Penguin Solutions from an "overweight" rating to an "equal weight" rating and lifted their price objective for the stock from $23.00 to $27.00 in a research report on Wednesday, April 22nd. Needham & Company LLC lifted their price objective on Penguin Solutions from $25.00 to $27.00 and gave the stock a "buy" rating in a research report on Thursday, April 2nd. Finally, Wall Street Zen lowered Penguin Solutions from a "buy" rating to a "hold" 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 and three have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $27.25.

Penguin Solutions Price Performance

The firm has a market capitalization of $2.27 billion, a P/E ratio of 62.31 and a beta of 2.66. The business has a 50-day moving average of $22.58 and a 200 day moving average of $21.02. 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 (NASDAQ:PENG - Get Free Report) last issued its earnings results on Wednesday, April 1st. The company reported $0.52 EPS for the quarter, beating analysts' consensus estimates of $0.43 by $0.09. Penguin Solutions had a return on equity of 19.94% and a net margin of 4.07%.The business had revenue of $343.00 million during the quarter, compared to analyst estimates of $339.00 million. On average, sell-side analysts predict that Penguin Solutions, Inc. will post 1.66 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, SVP Joseph Gates Clark sold 5,000 shares of the firm's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $29.75, for a total transaction of $148,750.00. Following the transaction, the senior vice president directly owned 86,776 shares of the company's stock, valued at approximately $2,581,586. This trade represents a 5.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the firm'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 completion of the sale, the senior vice president owned 131,352 shares of the company's stock, valued at $2,331,498. This trade 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 30,115 shares of company stock valued at $723,997 over the last three months. Corporate insiders own 2.90% of the company's stock.

Institutional Trading of Penguin Solutions

Institutional investors and hedge funds have recently bought and sold shares of the stock. Farther Finance Advisors LLC lifted its holdings in shares of Penguin Solutions by 187.0% during the fourth quarter. Farther Finance Advisors LLC now owns 1,452 shares of the company's stock valued at $28,000 after purchasing an additional 946 shares during the last quarter. Kestra Advisory Services LLC purchased a new position in shares of Penguin Solutions during the fourth quarter valued at approximately $29,000. Strs Ohio purchased a new position in shares of Penguin Solutions during the third quarter valued at approximately $42,000. Jones Financial Companies Lllp lifted its holdings in shares of Penguin Solutions by 4,131.7% during the third quarter. Jones Financial Companies Lllp now owns 1,735 shares of the company's stock valued at $45,000 after purchasing an additional 1,694 shares during the last quarter. Finally, Allworth Financial LP raised its holdings in 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 acquiring an additional 525 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.

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