Penguin Solutions (NASDAQ:PENG) Stock Price Down 7.7% - Here's What Happened

Key Points

• Penguin Solutions shares fell 7.7% to $57.10 in mid-day trading, with volume 55% above the average session level.
• The company exceeded quarterly expectations, reporting $1.00 in EPS versus $0.77 expected and revenue of $566.68 million versus the $520.99 million consensus estimate.
• Analysts remain broadly positive, with a “Moderate Buy” consensus rating and an average price target of $87.50, despite recent insider sales conducted under pre-arranged trading plans.

Shares of Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report) traded down 7.7% during mid-day trading on Friday. The stock traded as low as $56.90 and last traded at $57.10. 3,963,860 shares were traded during trading, an increase of 55% from the average session volume of 2,563,010 shares. The stock had previously closed at $61.86.

Analyst Ratings Changes

Several analysts have weighed in on the stock. Citizens Jmp upped their price objective on shares of Penguin Solutions from $65.00 to $85.00 and gave the stock a "market outperform" rating in a research note on Wednesday, July 8th. The Goldman Sachs Group restated a "buy" rating and issued a $85.00 target price on shares of Penguin Solutions in a research note on Wednesday, October 7th. Citigroup restated an "outperform" rating on shares of Penguin Solutions in a research note on Wednesday, July 8th. Zacks Research raised Penguin Solutions from a "hold" rating to a "strong-buy" rating in a report on Friday, October 9th. Finally, Wall Street Zen downgraded shares of Penguin Solutions from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 26th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $87.50.

Penguin Solutions Stock Down 7.7%

The company has a debt-to-equity ratio of 1.37, a current ratio of 1.88 and a quick ratio of 1.25. The firm has a market cap of $2.93 billion, a price-to-earnings ratio of 22.05, a price-to-earnings-growth ratio of 0.80 and a beta of 2.86. The firm has a 50 day moving average price of $56.46 and a 200-day moving average price of $52.27.

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 business 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 last year, the business 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 predict that Penguin Solutions, Inc. will post 4.05 EPS for the current fiscal year.

Insider Activity

In other news, SVP Anne Kuykendall sold 4,000 shares of Penguin Solutions stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $50.58, for a total transaction of $202,320.00. Following the completion of the sale, the senior vice president owned 112,994 shares in the company, valued at $5,715,236.52. The trade was a 3.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 1,327 shares of the business's 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 directly owned 63,056 shares of the company's stock, valued at approximately $3,623,828.32. This trade represents a 2.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Penguin Solutions

Hedge funds and other institutional investors have recently bought and sold shares of the business. Global Retirement Partners LLC acquired a new stake in Penguin Solutions during the 2nd quarter worth $26,000. Allworth Financial LP acquired a new position in shares of Penguin Solutions in the 2nd quarter valued at $37,000. Nykredit A S acquired a new position in shares of Penguin Solutions in the 2nd quarter valued at $42,000. Polaris Financial Partners acquired a new position in shares of Penguin Solutions in the 3rd quarter valued at $50,000. Finally, Public Employees Retirement System of Ohio bought a new position in shares of Penguin Solutions in the 2nd quarter worth $74,000.

About Penguin Solutions

Penguin Solutions, Inc provides intelligent infrastructure solutions for artificial intelligence, high-performance computing, enterprise data centers and other demanding technology environments. The company combines specialized hardware, software and professional services to help organizations design, deploy and manage complex computing infrastructure.

Its offerings include AI and high-performance computing systems, servers, storage and networking infrastructure, as well as software and services for infrastructure management, optimization and support.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.