Penguin Solutions (NASDAQ:PENG) Stock Price Down 12.1% - What's Next?

Key Points

• Penguin Solutions shares fell 12.1% to about $51.65, with trading volume 67% below its average.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $87.50; individual targets range from $60 to $100.
• The company recently beat quarterly expectations, reporting $1.00 EPS versus $0.77 expected and revenue of $566.68 million versus $520.99 million estimated.

Shares of Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) traded down 12.1% on Friday. The stock traded as low as $52.05 and last traded at $51.6480. 850,755 shares were traded during trading, a decline of 67% from the average daily volume of 2,583,493 shares. The stock had previously closed at $58.79.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on PENG shares. The Goldman Sachs Group reissued a "buy" rating and set a $85.00 target price on shares of Penguin Solutions in a report on Wednesday, October 7th. Citizens Jmp upped their price target on shares of Penguin Solutions from $65.00 to $85.00 and gave the company a "market outperform" rating in a research note on Wednesday, July 8th. Weiss Ratings raised shares of Penguin Solutions from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, October 16th. Barclays lifted their price objective on shares of Penguin Solutions from $40.00 to $60.00 and gave the stock an "underweight" rating in a research note on Wednesday, October 7th. Finally, Deutsche Bank Aktiengesellschaft set a $100.00 price objective on shares of Penguin Solutions in a research note on Friday, October 9th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $87.50.

Penguin Solutions Stock Performance

The stock has a market cap of $3.04 billion, a P/E ratio of 19.52, a price-to-earnings-growth ratio of 0.72 and a beta of 2.86. 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 stock has a 50 day simple moving average of $56.19 and a 200 day simple moving average of $43.71.

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

Insider Transactions at Penguin Solutions

In other Penguin Solutions news, SVP Anne Kuykendall sold 738 shares of the stock in a transaction dated Thursday, October 22nd. The shares were sold at an average price of $55.08, for a total transaction of $40,649.04. Following the sale, the senior vice president directly owned 141,988 shares in the company, valued at $7,820,699.04. This represents a 0.52% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Joseph Clark sold 869 shares of the firm's stock in a transaction dated Friday, October 23rd. The shares were sold at an average price of $51.52, for a total transaction of $44,770.88. Following the completion of the transaction, the senior vice president directly owned 85,853 shares in the company, valued at approximately $4,423,146.56. This represents a 1.00% 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. Insiders have sold 5,607 shares of company stock worth $287,740 over the last quarter. Corporate insiders own 2.90% of the company's stock.

Institutional Trading of Penguin Solutions

Several large investors have recently made changes to their positions in PENG. Signaturefd LLC raised its position in Penguin Solutions by 25.3% in the third quarter. Signaturefd LLC now owns 1,081 shares of the company's stock valued at $59,000 after purchasing an additional 218 shares during the last quarter. Global Retirement Partners LLC acquired a new stake in shares of Penguin Solutions during the second quarter valued at about $26,000. GAMMA Investing LLC grew its holdings in shares of Penguin Solutions by 9.1% during the third quarter. GAMMA Investing LLC now owns 5,527 shares of the company's stock worth $302,000 after purchasing an additional 462 shares during the last quarter. Allworth Financial LP bought a new stake in shares of Penguin Solutions during the second quarter worth about $37,000. Finally, Yousif Capital Management LLC increased its stake in shares of Penguin Solutions by 4.4% in the third quarter. Yousif Capital Management LLC now owns 12,935 shares of the company's stock valued at $707,000 after buying an additional 546 shares during the period.

Penguin Solutions Company Profile

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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