Penguin Solutions (NASDAQ:PENG) Upgraded at Wall Street Zen

Key Points

• Penguin Solutions was upgraded by Wall Street Zen from “buy” to “strong-buy”, adding to a generally positive analyst backdrop. Overall, the stock now has a Moderate Buy consensus rating with a consensus price target of $63.33.
• The company’s latest quarterly results beat expectations, with EPS of $0.84 versus estimates of $0.63 and revenue of $478.71 million versus $407.47 million expected. Shares were trading around $60.41 after the report.
• Despite the upbeat outlook, insiders have been selling shares in recent months, including two SVP transactions disclosed in June. Institutional investors, meanwhile, have been adding to positions in the stock.

Penguin Solutions (NASDAQ:PENG - Get Free Report) was upgraded by analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued on Saturday.

A number of other research analysts have also recently commented on PENG. Citigroup restated an "outperform" rating on shares of Penguin Solutions in a research note on Wednesday, July 8th. Stifel Nicolaus increased their price objective on Penguin Solutions from $66.00 to $75.00 and gave the stock a "buy" rating in a report on Wednesday, July 8th. Needham & Company LLC raised their price objective on Penguin Solutions from $60.00 to $80.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. 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. Finally, Rosenblatt Securities lifted their price target on shares of Penguin Solutions from $65.00 to $75.00 and gave the company a "buy" rating in a research report on Monday, July 6th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $63.33.

Penguin Solutions Price Performance

Shares of PENG stock opened at $60.41 on Friday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.10 and a current ratio of 1.54. Penguin Solutions has a fifty-two week low of $16.04 and a fifty-two week high of $89.86. The firm has a market cap of $3.10 billion, a P/E ratio of 42.84 and a beta of 2.83. The business's 50 day moving average price is $61.96 and its 200-day moving average price is $35.61.

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

Insider Activity

In other news, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $64.38, for a total transaction of $257,520.00. Following the sale, the senior vice president owned 120,794 shares in the company, valued at $7,776,717.72. This represents a 3.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Gates Clark sold 10,351 shares of the firm's stock in a transaction that occurred 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 directly owned 66,425 shares of the company's stock, valued at $3,910,439.75. This trade represents a 13.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 65,574 shares of company stock valued at $3,069,722 over the last ninety days. 2.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Penguin Solutions

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Tactive Advisors LLC bought a new stake in shares of Penguin Solutions in the 2nd quarter worth $747,000. FNY Investment Advisers LLC bought a new position in shares of Penguin Solutions during the second quarter valued at $714,000. Central Pacific Bank Trust Division boosted its position in shares of Penguin Solutions by 31.7% during the second quarter. Central Pacific Bank Trust Division now owns 18,976 shares of the company's stock valued at $1,442,000 after buying an additional 4,567 shares during the last quarter. Pacer Advisors Inc. increased its holdings in Penguin Solutions by 34.0% in the 1st quarter. Pacer Advisors Inc. now owns 261,776 shares of the company's stock worth $4,607,000 after buying an additional 66,460 shares in the last quarter. Finally, California State Teachers Retirement System increased its holdings in Penguin Solutions by 52.8% in the 1st quarter. California State Teachers Retirement System now owns 74,580 shares of the company's stock worth $1,313,000 after buying an additional 25,763 shares in the last quarter.

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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