Penguin Solutions (NASDAQ:PENG) Shares Down 8.9% - What's Next?

Key Points

• Penguin Solutions shares fell 8.9% in Thursday trading, with the stock hitting an intraday low of $66.10 on volume well below average.
• Despite the pullback, Wall Street sentiment remains positive: several analysts recently raised price targets, and the stock carries a consensus Moderate Buy rating.
• The company’s latest earnings were better than expected, with quarterly EPS of $0.84 and revenue of $478.71 million, both topping analyst estimates.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) traded down 8.9% during mid-day trading on Thursday . The stock traded as low as $66.10 and last traded at $66.3390. Approximately 982,124 shares traded hands during trading, a decline of 59% from the average daily volume of 2,424,816 shares. The stock had previously closed at $72.85.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. Citigroup reiterated an "outperform" rating on shares of Penguin Solutions in a research report on Wednesday, July 8th. Citizens Jmp upped their price objective on Penguin Solutions from $65.00 to $85.00 and gave the company a "market outperform" rating in a research report on Wednesday, July 8th. Stifel Nicolaus raised their price objective on Penguin Solutions from $66.00 to $75.00 and gave the company a "buy" rating in a research note on Wednesday, July 8th. Weiss Ratings upgraded Penguin Solutions from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 8th. Finally, Rosenblatt Securities boosted their target price on Penguin Solutions from $65.00 to $75.00 and gave the company a "buy" rating in a research report on Monday, July 6th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Penguin Solutions currently has an average rating of "Moderate Buy" and an average price target of $57.71.

Penguin Solutions Stock Down 10.9%

The company has a 50-day simple moving average of $61.09 and a 200 day simple moving average of $35.11. The company has a market cap of $3.33 billion, a P/E ratio of 46.22 and a beta of 2.83. The company has a current ratio of 1.54, a quick ratio of 1.10 and a debt-to-equity ratio of 0.65.

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

Insider Activity at Penguin Solutions

In other Penguin Solutions news, Director Maximiliane C. Straub sold 8,000 shares of the company's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $45.00, for a total value of $360,000.00. Following the transaction, the director directly owned 58,975 shares in the company, valued at $2,653,875. This represents a 11.94% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Sandeep Nayyar sold 12,893 shares of the company's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $45.09, for a total transaction of $581,345.37. Following the completion of the transaction, the director owned 32,524 shares in the company, valued at $1,466,507.16. This represents a 28.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 65,574 shares of company stock worth $3,069,722. 2.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of PENG. Allworth Financial LP boosted its stake in shares of Penguin Solutions by 41.4% during the third quarter. Allworth Financial LP now owns 1,792 shares of the company's stock valued at $47,000 after purchasing an additional 525 shares in the last quarter. Osaic Holdings Inc. raised its stake in Penguin Solutions by 20.8% in the second quarter. Osaic Holdings Inc. now owns 3,583 shares of the company's stock worth $71,000 after buying an additional 617 shares in the last quarter. Covestor Ltd lifted its holdings in Penguin Solutions by 4.7% during the fourth quarter. Covestor Ltd now owns 15,535 shares of the company's stock worth $304,000 after buying an additional 695 shares during the period. M&T Bank Corp lifted its holdings in Penguin Solutions by 7.0% during the fourth quarter. M&T Bank Corp now owns 10,851 shares of the company's stock worth $212,000 after buying an additional 706 shares during the period. Finally, Optimize Financial Inc boosted its position in Penguin Solutions by 1.5% during the 4th quarter. Optimize Financial Inc now owns 56,354 shares of the company's stock valued at $1,102,000 after acquiring an additional 808 shares in 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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