Penguin Solutions (NASDAQ:PENG) Shares Gap Up - Still a Buy?

Key Points

• Penguin Solutions shares surged: The stock opened at $41.69 after closing at $37.22 and last traded at $42.79.
• Quarterly results beat expectations: EPS was $1.00 versus consensus of $0.77, while revenue of $566.68 million exceeded the $520.99 million forecast. The company issued FY 2027 EPS guidance of $3.75–$5.15.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $87.50, though recent ratings range from Buy to Sell.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report)'s stock price gapped up prior to trading on Friday. The stock had previously closed at $37.22, but opened at $41.69. Penguin Solutions shares last traded at $42.7940, with a volume of 645,077 shares changing hands.

Analyst Ratings Changes

PENG has been the subject of several recent analyst reports. Deutsche Bank Aktiengesellschaft set a $100.00 target price on shares of Penguin Solutions in a research report on Friday, October 9th. Barclays lifted their price target on Penguin Solutions from $40.00 to $60.00 and gave the company an "underweight" rating in a report on Wednesday, October 7th. Weiss Ratings upgraded Penguin Solutions from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, October 16th. Stifel Nicolaus increased their price objective on Penguin Solutions from $75.00 to $85.00 and gave the stock a "buy" rating in a report on Wednesday, October 7th. Finally, Needham & Company LLC raised their price target on Penguin Solutions from $80.00 to $85.00 and gave the company a "buy" rating in a report on Wednesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $87.50.

Penguin Solutions Stock Performance

The company has a current ratio of 1.88, a quick ratio of 1.25 and a debt-to-equity ratio of 1.37. The company has a market cap of $2.59 billion, a P/E ratio of 16.54, a price-to-earnings-growth ratio of 0.57 and a beta of 2.87. The company's 50-day moving average price is $55.82 and its two-hundred day moving average price is $44.40.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last posted its quarterly earnings results on Tuesday, October 6th. The company reported $1.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.23. The company had revenue of $566.68 million for the quarter, compared to analysts' expectations of $520.99 million. Penguin Solutions had a return on equity of 36.71% and a net margin of 10.43%. During the same quarter in the prior year, the company earned $0.11 earnings per share. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. As a group, equities analysts forecast that Penguin Solutions, Inc. will post 4.05 earnings per share for the current year.

Insider Buying and Selling

In other Penguin Solutions news, SVP Anne Kuykendall sold 4,000 shares of the business's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $50.58, for a total transaction of $202,320.00. Following the sale, the senior vice president owned 112,994 shares in the company, valued at approximately $5,715,236.52. The trade was a 3.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 5,773 shares of the company's stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $49.66, for a total transaction of $286,687.18. Following the sale, the senior vice president directly owned 80,080 shares of the company's stock, valued at $3,976,772.80. This represents a 6.72% decrease in their ownership of the stock. 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 quarter, insiders have sold 16,011 shares of company stock valued at $847,239. 2.90% of the stock is owned by corporate insiders.

Institutional Trading of Penguin Solutions

Several hedge funds and other institutional investors have recently modified their holdings of PENG. Global Retirement Partners LLC acquired a new stake in Penguin Solutions during the 2nd quarter worth about $26,000. Allworth Financial LP acquired a new position in shares of Penguin Solutions in the 2nd quarter valued at about $37,000. Nykredit A S acquired a new position in shares of Penguin Solutions in the 2nd quarter valued at about $42,000. Polaris Financial Partners acquired a new position in Penguin Solutions in the 3rd quarter valued at approximately $50,000. Finally, Signaturefd LLC raised its holdings in shares of Penguin Solutions by 25.3% during the third quarter. Signaturefd LLC now owns 1,081 shares of the company's stock worth $59,000 after acquiring an additional 218 shares in the last quarter.

About Penguin Solutions

Penguin Solutions, Inc provides technology products and services for data center, cloud, artificial intelligence, high-performance computing, edge computing and embedded applications. The company designs and delivers memory products, computing platforms and integrated infrastructure intended to help organizations manage demanding workloads and deploy specialized technology environments.

Its offerings include memory modules and other memory-related products, high-performance computing systems, servers, storage and networking solutions, and software and services for infrastructure management.

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