Rosenblatt Securities Issues Pessimistic Forecast for Penguin Solutions (NASDAQ:PENG) Stock Price

Key Points

• Rosenblatt Securities has reduced its price target for Penguin Solutions (NASDAQ:PENG) from $36.00 to $30.00, while maintaining a "buy" rating, indicating a potential upside of 11.11% from the previous close.
• The stock has received mixed ratings from analysts, with one Strong Buy, seven Buy, two Hold, and one Sell, resulting in an average rating of "Moderate Buy" and a price target of $28.00.
• Recent insider trading has seen significant share sales, including a director selling over 2,000 shares and an executive vice president selling over 63,000 shares, reflecting a decrease in their equity stakes in the company.

Penguin Solutions (NASDAQ:PENG - Get Free Report) had its price objective dropped by Rosenblatt Securities from $36.00 to $30.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Rosenblatt Securities' price target would suggest a potential upside of 11.11% from the company's previous close.

A number of other equities research analysts also recently commented on PENG. Needham & Company LLC lifted their target price on Penguin Solutions from $27.00 to $30.00 and gave the company a "buy" rating in a research report on Tuesday, July 22nd. Weiss Ratings restated a "sell (d-)" rating on shares of Penguin Solutions in a research report on Saturday, September 27th. JPMorgan Chase & Co. lifted their target price on Penguin Solutions from $21.00 to $24.00 and gave the company a "neutral" rating in a research report on Thursday, July 17th. JMP Securities restated a "market outperform" rating and issued a $26.00 target price on shares of Penguin Solutions in a research report on Wednesday, July 9th. Finally, Zacks Research downgraded Penguin Solutions from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 8th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $28.00.

Penguin Solutions Stock Performance

Shares of Penguin Solutions stock opened at $27.00 on Wednesday. Penguin Solutions has a one year low of $14.20 and a one year high of $29.80. The company has a market cap of $1.41 billion, a price-to-earnings ratio of -96.43 and a beta of 2.20. The company has a debt-to-equity ratio of 1.08, a quick ratio of 2.24 and a current ratio of 2.62. The business's 50 day moving average price is $25.13 and its 200 day moving average price is $21.30.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last announced its quarterly earnings data on Tuesday, July 8th. The company reported $0.47 EPS for the quarter, topping analysts' consensus estimates of $0.30 by $0.17. Penguin Solutions had a positive return on equity of 13.27% and a negative net margin of 0.68%.The firm had revenue of $324.25 million for the quarter, compared to the consensus estimate of $330.82 million. On average, research analysts predict that Penguin Solutions will post 1.05 EPS for the current year.

Insider Activity

In other Penguin Solutions news, Director Penny Herscher sold 2,046 shares of the company's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $25.42, for a total transaction of $52,009.32. Following the sale, the director owned 18,222 shares in the company, valued at $463,203.24. This represents a 10.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Jack A. Pacheco sold 63,447 shares of the company's stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $24.83, for a total value of $1,575,389.01. Following the sale, the executive vice president owned 227,231 shares in the company, valued at approximately $5,642,145.73. This trade represents a 21.83% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 66,175 shares of company stock worth $1,644,448. 2.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Crews Bank & Trust purchased a new position in shares of Penguin Solutions in the 1st quarter valued at about $28,000. Raymond James Financial Inc. purchased a new position in shares of Penguin Solutions in the 2nd quarter valued at about $37,000. IFP Advisors Inc purchased a new position in shares of Penguin Solutions in the 1st quarter valued at about $39,000. UMB Bank n.a. purchased a new position in shares of Penguin Solutions in the 2nd quarter valued at about $44,000. Finally, CWM LLC purchased a new position in shares of Penguin Solutions in the 1st quarter valued at about $39,000.

About Penguin Solutions

Penguin Solutions, Inc engages in the designing and development of enterprise solutions worldwide. It operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers dynamic random access memory modules, solid-state and flash storage, and other advanced integrated memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services.

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