Penguin Solutions (NASDAQ:PENG) Shares Up 9.7% - Here's What Happened

Key Points

• Penguin Solutions shares jumped 9.7% to $52.90 in Thursday trading, although volume was 74% below the average session level.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” from nine analysts and an average price target of $63.33. Recent target increases included Needham to $80 and Citizens JMP to $85.
• The company exceeded quarterly expectations, reporting $0.84 in EPS versus the $0.63 consensus and revenue of $478.71 million versus estimates of $407.47 million.

Shares of Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) traded up 9.7% on Thursday . The stock traded as high as $52.56 and last traded at $52.90. Approximately 599,131 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 2,323,735 shares. The stock had previously closed at $48.24.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on PENG shares. Needham & Company LLC increased their price objective on shares of Penguin Solutions from $60.00 to $80.00 and gave the company a "buy" rating in a report on Wednesday, July 8th. Weiss Ratings raised Penguin Solutions from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, July 8th. Zacks Research cut Penguin Solutions from a "strong-buy" rating to a "hold" rating in a report on Monday, September 7th. Citizens Jmp lifted their price objective on shares of Penguin Solutions from $65.00 to $85.00 and gave the company a "market outperform" rating in a report on Wednesday, July 8th. Finally, Stifel Nicolaus upped their target price on Penguin Solutions from $66.00 to $75.00 and gave the stock a "buy" rating in a report on Wednesday, July 8th. Six equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $63.33.

Penguin Solutions Trading Up 9.0%

The stock has a market capitalization of $2.69 billion, a price-to-earnings ratio of 37.30 and a beta of 2.86. The business has a fifty day simple moving average of $55.92 and a 200 day simple moving average of $45.86. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.10 and a current ratio of 1.54.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last posted its quarterly earnings data on Tuesday, July 7th. The company reported $0.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.63 by $0.21. Penguin Solutions had a net margin of 6.44% and a return on equity of 28.23%. The firm had revenue of $478.71 million during the quarter, compared to the consensus estimate of $407.47 million. During the same quarter in the previous year, the firm posted $0.52 EPS. As a group, research analysts expect that Penguin Solutions, Inc. will post 2.08 EPS for the current year.

Insider Transactions at Penguin Solutions

In other Penguin Solutions news, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $50.58, for a total transaction of $202,320.00. Following the sale, the senior vice president directly owned 112,994 shares in the company, valued at $5,715,236.52. This represents a 3.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 1,327 shares of the stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $57.47, for a total transaction of $76,262.69. Following the sale, the senior vice president owned 63,056 shares in the company, valued at $3,623,828.32. This represents a 2.06% 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. 2.90% of the stock is owned by insiders.

Institutional Trading of Penguin Solutions

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Global Retirement Partners LLC acquired a new position in shares of Penguin Solutions in the second quarter valued at approximately $26,000. Allworth Financial LP acquired a new position in Penguin Solutions in the second quarter valued at approximately $37,000. Nykredit A S bought a new position in Penguin Solutions during the second quarter worth $42,000. Public Employees Retirement System of Ohio bought a new position in shares of Penguin Solutions during the 2nd quarter worth about $74,000. Finally, Morgan Dempsey Capital Management LLC acquired a new position in shares of Penguin Solutions during the fourth quarter valued at about $78,000.

About Penguin Solutions

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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