Penguin Solutions (NASDAQ:PENG) Shares Gap Up - Time to Buy?

Key Points

• Penguin Solutions shares gapped higher, opening at $49.19 versus a prior close of $47.50, and last traded near $48.98.
• Analyst sentiment remains favorable: six analysts rate the stock Buy, with a consensus “Moderate Buy” rating and a $63.33 target price; several firms recently raised targets to between $75 and $85.
• The company exceeded quarterly expectations, reporting $0.84 in EPS versus $0.63 expected and $478.71 million in revenue versus $407.47 million estimated. However, two senior executives recently sold shares under pre-arranged trading plans.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report)'s share price gapped up before the market opened on Wednesday . The stock had previously closed at $47.50, but opened at $49.19. Penguin Solutions shares last traded at $48.9760, with a volume of 87,815 shares.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on PENG. Citizens Jmp boosted their price objective on shares of Penguin Solutions from $65.00 to $85.00 and gave the company a "market outperform" rating in a research report on Wednesday, July 8th. Needham & Company LLC boosted their price target on Penguin Solutions from $60.00 to $80.00 and gave the company a "buy" rating in a report on Wednesday, July 8th. Weiss Ratings upgraded Penguin Solutions from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 8th. Zacks Research downgraded Penguin Solutions from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 7th. Finally, Rosenblatt Securities increased their target price on Penguin Solutions from $65.00 to $75.00 and gave the stock a "buy" rating in a research report on Monday, July 6th. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $63.33.

Penguin Solutions Stock Up 1.9%

The stock has a fifty day moving average of $56.52 and a two-hundred day moving average of $45.66. The company has a quick ratio of 1.10, a current ratio of 1.54 and a debt-to-equity ratio of 0.65. The stock has a market cap of $2.48 billion, a price-to-earnings ratio of 34.31 and a beta of 2.86.

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 the consensus estimate 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 period in the prior year, the firm posted $0.52 earnings per share. As a group, analysts predict that Penguin Solutions, Inc. will post 2.08 EPS for the current fiscal year.

Insider Buying and Selling

In other news, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction on Monday, August 24th. The shares were sold at an average price of $50.58, for a total value of $202,320.00. Following the completion of the sale, the senior vice president owned 112,994 shares of the company's stock, valued at $5,715,236.52. This represents a 3.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 1,327 shares of the firm's stock in a transaction on Thursday, July 23rd. The shares were sold at an average price of $57.47, for a total transaction of $76,262.69. Following the completion of the transaction, the senior vice president directly owned 63,056 shares in the company, valued at approximately $3,623,828.32. This represents a 2.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.90% of the company's stock.

Institutional Investors Weigh In On Penguin Solutions

A number of large investors have recently added to or reduced their stakes in PENG. Tidal Investments LLC raised its holdings in Penguin Solutions by 224.6% in the second quarter. Tidal Investments LLC now owns 165,954 shares of the company's stock valued at $12,614,000 after acquiring an additional 114,821 shares in the last quarter. IPG Investment Advisors LLC acquired a new position in Penguin Solutions during the 2nd quarter worth $221,000. Integrated Wealth Concepts LLC bought a new stake in shares of Penguin Solutions in the 2nd quarter worth about $395,000. Nykredit A S acquired a new stake in shares of Penguin Solutions in the 2nd quarter valued at about $42,000. Finally, Corient Private Wealth LP acquired a new stake in shares of Penguin Solutions in the 2nd quarter valued at about $341,000.

Penguin Solutions Company Profile

Penguin Solutions, Inc NASDAQ: PENG provides technology solutions for data centers, high-performance computing, artificial intelligence, and intelligent edge applications. The company helps organizations design, deploy, and manage specialized computing environments, including systems used for demanding workloads such as scientific research, machine learning, and enterprise applications.

Its offerings include accelerated computing platforms, high-performance servers and clusters, software and services for managing complex computing infrastructure, and memory and storage products.

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