Penumbra (NYSE:PEN) Cut to "Hold" at Wall Street Zen

Key Points

• Penumbra's rating was downgraded from "strong-buy" to "hold" by Wall Street Zen, indicating a shift in analyst sentiment.
• Despite the downgrade, several analysts maintain positive ratings, with a majority giving it "buy" or "strong buy" ratings and an average price target of $300.47.
• The company's latest earnings report showed a revenue increase of 13.4% year-over-year, with earnings per share exceeding analysts' expectations.

Penumbra (NYSE:PEN - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "hold" rating in a note issued to investors on Saturday.

A number of other research firms have also commented on PEN. UBS Group set a $335.00 price objective on shares of Penumbra and gave the company a "buy" rating in a research note on Wednesday, July 30th. Canaccord Genuity Group increased their price target on Penumbra from $340.00 to $350.00 and gave the stock a "buy" rating in a report on Wednesday, July 30th. Royal Bank Of Canada dropped their price objective on Penumbra from $330.00 to $325.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 30th. Morgan Stanley raised their target price on Penumbra from $260.00 to $266.00 and gave the stock an "equal weight" rating in a research note on Thursday. Finally, Truist Financial set a $310.00 price target on Penumbra and gave the company a "buy" rating in a research note on Wednesday, July 30th. Four equities research analysts have rated the stock with a hold rating, thirteen have given a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, Penumbra has an average rating of "Moderate Buy" and an average price target of $300.47.

Penumbra Trading Down 0.9%

Shares of NYSE:PEN traded down $2.30 during mid-day trading on Friday, reaching $240.71. 427,592 shares of the company's stock were exchanged, compared to its average volume of 505,885. The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.04 and a current ratio of 6.75. Penumbra has a twelve month low of $163.63 and a twelve month high of $310.00. The firm has a market capitalization of $9.39 billion, a price-to-earnings ratio of 64.02, a PEG ratio of 2.19 and a beta of 0.40. The business's fifty day moving average price is $249.42 and its 200-day moving average price is $267.29.

Penumbra (NYSE:PEN - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The company reported $0.86 EPS for the quarter, beating analysts' consensus estimates of $0.81 by $0.05. Penumbra had a return on equity of 11.55% and a net margin of 11.54%. The firm had revenue of $339.46 million for the quarter, compared to analyst estimates of $327.37 million. During the same quarter in the previous year, the company posted $0.64 EPS. The business's revenue was up 13.4% on a year-over-year basis. On average, research analysts predict that Penumbra will post 3.67 EPS for the current fiscal year.

Insider Activity

In other Penumbra news, CEO Adam Elsesser sold 16,650 shares of Penumbra stock in a transaction dated Wednesday, May 7th. The stock was sold at an average price of $289.37, for a total transaction of $4,818,010.50. Following the completion of the transaction, the chief executive officer owned 75,237 shares in the company, valued at approximately $21,771,330.69. The trade was a 18.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Johanna Roberts sold 900 shares of the stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $298.55, for a total value of $268,695.00. Following the completion of the sale, the executive vice president directly owned 65,314 shares of the company's stock, valued at approximately $19,499,494.70. This trade represents a 1.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 115,735 shares of company stock worth $30,476,510. 5.00% of the stock is owned by insiders.

Institutional Trading of Penumbra

Institutional investors have recently made changes to their positions in the company. JPMorgan Chase & Co. boosted its holdings in shares of Penumbra by 437.0% in the 1st quarter. JPMorgan Chase & Co. now owns 703,634 shares of the company's stock worth $188,159,000 after buying an additional 572,606 shares during the last quarter. Lord Abbett & CO. LLC bought a new stake in Penumbra in the first quarter worth about $63,731,000. Norges Bank purchased a new position in Penumbra in the fourth quarter valued at about $54,396,000. T. Rowe Price Investment Management Inc. grew its position in shares of Penumbra by 47.4% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 707,061 shares of the company's stock valued at $167,913,000 after acquiring an additional 227,506 shares during the period. Finally, GAMMA Investing LLC grew its position in shares of Penumbra by 42,409.9% during the 1st quarter. GAMMA Investing LLC now owns 189,594 shares of the company's stock valued at $50,699,000 after acquiring an additional 189,148 shares during the period. Institutional investors own 88.88% of the company's stock.

About Penumbra

Penumbra, Inc, together with its subsidiaries, designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers peripheral products, including the Indigo System for power aspiration of thrombus in the body; Lightning Flash, a mechanical thrombectomy system; Lightning Bolt 7, an arterial thrombectomy system; and CAT RX.