Penguin Solutions (NASDAQ:PENG) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Penguin Solutions from a “buy” to a “hold,” even as the broader analyst view remains constructive with a consensus rating of Moderate Buy and an average price target of $27.25.
• The stock has been very strong recently, opening at $44.23 and trading near its 52-week high of $44.74, far above its 50-day and 200-day moving averages.
• Penguin Solutions recently beat earnings and revenue estimates for the quarter, while insiders have been selling shares in recent months, including two senior vice presidents.

Penguin Solutions (NASDAQ:PENG - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

A number of other research firms also recently issued reports on PENG. Rosenblatt Securities reaffirmed a "buy" rating and issued a $30.00 price objective on shares of Penguin Solutions in a research note on Monday, March 30th. Stifel Nicolaus reduced their price objective on Penguin Solutions from $27.00 to $24.00 and set a "buy" rating on the stock in a research note on Thursday, April 2nd. The Goldman Sachs Group began coverage on Penguin Solutions in a research note on Tuesday, January 13th. They issued a "buy" rating and a $25.00 price objective on the stock. 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 note on Thursday, April 2nd. Finally, Barclays downgraded 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 note on Wednesday, April 22nd. 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 data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $27.25.

Penguin Solutions Stock Up 13.5%

Shares of PENG opened at $44.23 on Friday. The business's 50 day moving average is $22.58 and its 200 day moving average is $21.02. The company has a market capitalization of $2.24 billion, a PE ratio of 61.43 and a beta of 2.66. Penguin Solutions has a 12-month low of $16.04 and a 12-month high of $44.74. 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 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.09. Penguin Solutions had a return on equity of 19.94% and a net margin of 4.07%.The company had revenue of $343.00 million for the quarter, compared to the consensus estimate of $339.00 million. Research analysts expect that Penguin Solutions will post 1.66 earnings per share for the current fiscal year.

Insider Activity at Penguin Solutions

In related news, SVP Joseph Gates Clark sold 12,546 shares of the business's stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $22.55, for a total transaction of $282,912.30. Following the completion of the transaction, the senior vice president owned 99,726 shares in the company, valued at $2,248,821.30. The trade was a 11.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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 business's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $17.75, for a total value of $71,000.00. Following the transaction, the senior vice president owned 131,352 shares of the company's stock, valued at approximately $2,331,498. The trade was a 2.96% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 30,115 shares of company stock worth $723,997. Corporate insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Penguin Solutions

A number of large investors have recently bought and sold shares of the business. Allworth Financial LP boosted its holdings in Penguin Solutions by 41.4% during the 3rd quarter. Allworth Financial LP now owns 1,792 shares of the company's stock valued at $47,000 after acquiring an additional 525 shares during the period. Osaic Holdings Inc. boosted its holdings in Penguin Solutions by 20.8% during the 2nd quarter. Osaic Holdings Inc. now owns 3,583 shares of the company's stock valued at $71,000 after acquiring an additional 617 shares during the period. Covestor Ltd boosted its holdings in Penguin Solutions by 4.7% during the 4th quarter. Covestor Ltd now owns 15,535 shares of the company's stock valued at $304,000 after acquiring an additional 695 shares during the period. M&T Bank Corp boosted its holdings in Penguin Solutions by 7.0% during the 4th quarter. M&T Bank Corp now owns 10,851 shares of the company's stock valued at $212,000 after acquiring an additional 706 shares during the period. Finally, Optimize Financial Inc boosted its holdings 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 during the period.

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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