Penguin Solutions (NASDAQ:PENG) Trading Down 6.6% - Here's Why

Key Points

• Penguin Solutions shares fell 6.6% to about $54.52 in midday trading, with volume down 92% from the average session. The stock has a high beta of 2.87 and a market capitalization of approximately $2.81 billion.
• Analyst sentiment remains mixed but leans positive: the consensus rating is “Moderate Buy” with a $63.33 price target. Recent targets range from Barclays’ $40 “underweight” view to Citizens JMP’s $85 “market outperform” target.
• The company’s latest quarterly results exceeded expectations, with EPS of $0.84 versus the $0.63 consensus and revenue of $478.71 million versus estimates of $407.47 million. Insiders have sold 19,678 shares worth about $1.16 million over the past 90 days, while insiders own 2.9% of the stock.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report)'s share price traded down 6.6% on Wednesday . The company traded as low as $54.54 and last traded at $54.5160. Approximately 201,074 shares were traded during mid-day trading, a decline of 92% from the average session volume of 2,440,445 shares. The stock had previously closed at $58.36.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on PENG. 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. Weiss Ratings raised Penguin Solutions from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 8th. Wall Street Zen cut Penguin Solutions from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 26th. Barclays downgraded Penguin Solutions from an "equal weight" rating to an "underweight" rating and set a $40.00 target price for the company. in a research note on Monday, July 20th. Finally, Stifel Nicolaus increased their target price on Penguin Solutions from $66.00 to $75.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Penguin Solutions has a consensus rating of "Moderate Buy" and a consensus price target of $63.33.

Penguin Solutions Trading Down 5.9%

The company's 50 day moving average price is $62.44 and its two-hundred day moving average price is $41.28. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.54 and a quick ratio of 1.10. The stock has a market capitalization of $2.81 billion, a PE ratio of 38.95 and a beta of 2.87.

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

Insider Activity at Penguin Solutions

In other news, SVP Joseph Gates Clark sold 10,351 shares of the company's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $58.87, for a total value of $609,363.37. Following the completion of the sale, the senior vice president directly owned 66,425 shares in the company, valued at $3,910,439.75. This represents a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $54.45, for a total value of $217,800.00. Following the completion of the sale, the senior vice president directly owned 124,794 shares of the company's stock, valued at approximately $6,795,033.30. This represents a 3.11% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 19,678 shares of company stock worth $1,160,946. Insiders own 2.90% of the company's stock.

Institutional Trading of Penguin Solutions

Hedge funds and other institutional investors have recently modified their holdings of the stock. Global Retirement Partners LLC acquired a new position in shares of Penguin Solutions during the 2nd quarter valued at about $26,000. Farther Finance Advisors LLC increased its position in Penguin Solutions by 187.0% during 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 last quarter. Kestra Advisory Services LLC purchased a new position in Penguin Solutions during the fourth quarter worth about $29,000. Allworth Financial LP purchased a new position in Penguin Solutions during the second quarter worth about $37,000. Finally, Raymond James Financial Inc. purchased a new position in Penguin Solutions during the second quarter worth about $37,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source