Penguin Solutions (NASDAQ:PENG) Stock Price Up 4.2% - Here's What Happened

Key Points

• Penguin Solutions shares rose 4.2% to about $55.31 in Friday’s trading, although volume was roughly 95% below the stock’s average session volume.
• Analyst sentiment remains broadly positive, with six Buy ratings, two Holds and one Sell; the stock has a “Moderate Buy” consensus and an average price target of $63.33.
• The company exceeded quarterly expectations, reporting $0.84 in adjusted EPS versus $0.63 expected and revenue of $478.71 million compared with the $407.47 million consensus estimate.

Penguin Solutions, Inc. (NASDAQ:PENG - Get Free Report)'s stock price shot up 4.2% during mid-day trading on Friday. The company traded as high as $55.23 and last traded at $55.3110. 120,294 shares changed hands during trading, a decline of 95% from the average session volume of 2,298,956 shares. The stock had previously closed at $53.08.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on PENG. Zacks Research cut Penguin Solutions from a "strong-buy" rating to a "hold" rating in a report on Monday, September 7th. Stifel Nicolaus increased their price objective on Penguin Solutions from $66.00 to $75.00 and gave the stock a "buy" rating in a research note on Wednesday, July 8th. Barclays lowered Penguin Solutions from an "equal weight" rating to an "underweight" rating and set a $40.00 price objective for the company. in a research report on Monday, July 20th. Citizens Jmp lifted their target price on Penguin Solutions from $65.00 to $85.00 and gave the company a "market outperform" rating in a research note on Wednesday, July 8th. Finally, Needham & Company LLC upped their target price on Penguin Solutions from $60.00 to $80.00 and gave the company a "buy" rating in a report on Wednesday, July 8th. Six research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $63.33.

Penguin Solutions Trading Up 5.1%

The firm has a market capitalization of $2.86 billion, a price-to-earnings ratio of 39.54 and a beta of 2.86. The company has a fifty day moving average price of $53.33 and a 200-day moving average price of $47.32. The company has a current ratio of 1.54, a quick ratio of 1.10 and a debt-to-equity ratio of 0.65.

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. Penguin Solutions had a net margin of 6.44% and a return on equity of 28.23%. The company had revenue of $478.71 million for the quarter, compared to analyst estimates of $407.47 million. During the same quarter in the prior year, the business posted $0.52 EPS. On average, equities research analysts predict 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 business's stock in a transaction dated Monday, August 24th. The stock was 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. The trade was a 3.42% decrease in their ownership of the stock. The sale was disclosed in a 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 stock in a transaction dated Thursday, July 23rd. The shares were sold at an average price of $57.47, for a total value of $76,262.69. Following 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. 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 owned by insiders.

Hedge Funds Weigh In On Penguin Solutions

A number of institutional investors have recently modified their holdings of PENG. BlackRock Inc. acquired a new stake in Penguin Solutions during the second quarter worth about $581,658,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in Penguin Solutions in the 2nd quarter valued at approximately $150,192,000. Paradigm Capital Management Inc. NY bought a new stake in shares of Penguin Solutions in the 2nd quarter worth approximately $52,135,000. William Blair Investment Management LLC acquired a new stake in shares of Penguin Solutions during the 2nd quarter worth approximately $34,207,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Penguin Solutions during the 2nd quarter worth approximately $22,503,000.

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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