Penguin Solutions (NASDAQ:PENG) Upgraded by Zacks Research to "Strong-Buy" Rating

Key Points

• Zacks Research upgraded Penguin Solutions from Hold to Strong-Buy, adding to a generally positive analyst backdrop. Overall, the stock now has a Moderate Buy consensus and an average target price of $36.88.
• The company reported better-than-expected quarterly results, earning $0.52 per share versus estimates of $0.43 and posting revenue of $343 million versus $339 million expected.
• Despite the upbeat analyst and earnings picture, the stock was down 9.5% in Tuesday trading; recent insider activity also showed multiple executives selling shares under pre-arranged trading plans.

Penguin Solutions (NASDAQ:PENG - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

A number of other research analysts have also issued reports on PENG. Weiss Ratings lowered shares of Penguin Solutions from a "hold (c)" rating to a "hold (c-)" rating in a research note on Wednesday, May 13th. Needham & Company LLC raised their target price on Penguin Solutions from $25.00 to $27.00 and gave the stock a "buy" rating in a research note on Thursday, April 2nd. Rosenblatt Securities lifted their price target on Penguin Solutions from $54.00 to $65.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Barclays downgraded Penguin Solutions from an "overweight" rating to an "equal weight" rating and boosted their price target for the company from $23.00 to $27.00 in a research note on Wednesday, April 22nd. Finally, Wall Street Zen raised Penguin Solutions from a "hold" rating to a "buy" rating in a report on Sunday, May 17th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $36.88.

Penguin Solutions Trading Down 9.5%

NASDAQ PENG opened at $68.81 on Tuesday. Penguin Solutions has a 52 week low of $16.04 and a 52 week high of $77.40. The company has a 50 day moving average price of $52.81 and a 200 day moving average price of $31.45. The company has a quick ratio of 1.55, a current ratio of 2.10 and a debt-to-equity ratio of 1.09. The firm has a market cap of $3.49 billion, a PE ratio of 95.57 and a beta of 2.82.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last announced its earnings results on Wednesday, April 1st. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.09. The company had revenue of $343.00 million during the quarter, compared to the consensus estimate of $339.00 million. Penguin Solutions had a net margin of 4.07% and a return on equity of 19.94%. As a group, sell-side analysts forecast that Penguin Solutions will post 1.79 EPS for the current fiscal year.

Insider Buying and Selling at Penguin Solutions

In other Penguin Solutions news, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $54.45, for a total transaction of $217,800.00. Following the sale, the senior vice president directly owned 124,794 shares of the company's stock, valued at approximately $6,795,033.30. This trade represents a 3.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Gates Clark sold 12,546 shares of Penguin Solutions stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $22.55, for a total value of $282,912.30. Following the transaction, the senior vice president owned 99,726 shares of the company's stock, valued at $2,248,821.30. The trade was a 11.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 83,120 shares of company stock worth $3,486,734. 2.90% of the stock is currently owned by company insiders.

Institutional Trading of Penguin Solutions

A number of hedge funds have recently modified their holdings of the stock. Pacer Advisors Inc. raised its position in Penguin Solutions by 34.0% during the first quarter. Pacer Advisors Inc. now owns 261,776 shares of the company's stock valued at $4,607,000 after acquiring an additional 66,460 shares in the last quarter. California State Teachers Retirement System boosted its position 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 purchasing an additional 25,763 shares in the last quarter. Maverick Capital Ltd. purchased a new stake in Penguin Solutions in the 1st quarter worth approximately $771,000. Quantinno Capital Management LP grew its stake in shares of Penguin Solutions by 16.6% during the 1st quarter. Quantinno Capital Management LP now owns 28,318 shares of the company's stock worth $498,000 after purchasing an additional 4,036 shares during the period. Finally, Paradigm Capital Management Inc. NY grew its stake in shares of Penguin Solutions by 73.8% during the 1st quarter. Paradigm Capital Management Inc. NY now owns 1,605,100 shares of the company's stock worth $28,250,000 after purchasing an additional 681,700 shares during the period.

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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