Penumbra (NYSE:PEN) Shares Gap Up After Earnings Beat

Key Points

• Penumbra, Inc. shares saw a significant surge, opening at $247.00 after closing at $227.15, driven by strong earnings that exceeded analyst expectations.
• The company reported a quarterly earnings per share (EPS) of $0.86, surpassing the consensus estimate of $0.81, alongside a revenue of $339.46 million, up 13.4% year-over-year.
• Wall Street analysts are optimistic, with several raising their price targets; the stock has an average rating of "Buy" and a current average price target of $301.40.

Shares of Penumbra, Inc. (NYSE:PEN - Get Free Report) gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $227.15, but opened at $247.00. Penumbra shares last traded at $256.30, with a volume of 346,328 shares.

The company reported $0.86 earnings per share for the quarter, topping analysts' consensus estimates of $0.81 by $0.05. The business had revenue of $339.46 million during the quarter, compared to analyst estimates of $327.37 million. Penumbra had a return on equity of 11.55% and a net margin of 11.54%. Penumbra's revenue was up 13.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.64 EPS.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on PEN. Morgan Stanley increased 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. Citigroup decreased their target price on Penumbra from $320.00 to $285.00 and set a "neutral" rating for the company in a report on Wednesday, July 9th. Wall Street Zen upgraded Penumbra from a "buy" rating to a "strong-buy" rating in a research report on Saturday, June 14th. William Blair upgraded Penumbra to a "strong-buy" rating in a research report on Friday, July 18th. Finally, UBS Group set a $335.00 price target on Penumbra and gave the stock a "buy" rating in a research note on Wednesday. Three research analysts have rated the stock with a hold rating, thirteen have given a buy rating and three have issued a strong buy rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus price target of $300.47.

Insider Buying and Selling at Penumbra

In other news, EVP Johanna Roberts sold 600 shares of Penumbra stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $252.70, for a total transaction of $151,620.00. Following the sale, the executive vice president directly owned 66,057 shares of the company's stock, valued at approximately $16,692,603.90. The trade was a 0.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Bridget O'rourke sold 100 shares of the business's stock in a transaction dated Thursday, May 15th. The shares were sold at an average price of $286.15, for a total value of $28,615.00. Following the completion of the sale, the director directly owned 5,423 shares of the company's stock, valued at approximately $1,551,791.45. This represents a 1.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 115,735 shares of company stock worth $30,476,510 in the last 90 days. 4.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Penumbra

A number of institutional investors have recently added to or reduced their stakes in the company. Quadrant Capital Group LLC lifted its position in Penumbra by 6.6% in the fourth quarter. Quadrant Capital Group LLC now owns 632 shares of the company's stock worth $150,000 after purchasing an additional 39 shares during the period. GAMMA Investing LLC increased its holdings in shares of Penumbra by 7.3% in the second quarter. GAMMA Investing LLC now owns 761 shares of the company's stock valued at $195,000 after buying an additional 52 shares in the last quarter. Baker Avenue Asset Management LP increased its holdings in shares of Penumbra by 1.6% in the fourth quarter. Baker Avenue Asset Management LP now owns 3,330 shares of the company's stock valued at $791,000 after buying an additional 53 shares in the last quarter. Fifth Third Bancorp increased its holdings in shares of Penumbra by 16.4% in the first quarter. Fifth Third Bancorp now owns 404 shares of the company's stock valued at $108,000 after buying an additional 57 shares in the last quarter. Finally, First Horizon Advisors Inc. raised its stake in Penumbra by 404.8% during the 1st quarter. First Horizon Advisors Inc. now owns 106 shares of the company's stock valued at $28,000 after purchasing an additional 85 shares during the period. 88.88% of the stock is currently owned by institutional investors and hedge funds.

Penumbra Stock Performance

The firm's 50 day simple moving average is $249.95 and its 200-day simple moving average is $267.30. The company has a debt-to-equity ratio of 0.02, a quick ratio of 3.68 and a current ratio of 6.75. The company has a market capitalization of $9.50 billion, a price-to-earnings ratio of 65.24, a P/E/G ratio of 2.27 and a beta of 0.47.

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.