Weiss Ratings Reiterates "Sell (D-)" Rating for Penguin Solutions (NASDAQ:PENG)

Key Points

• Weiss Ratings has reaffirmed a "Sell (D-)" rating for Penguin Solutions (NASDAQ:PENG), indicating a negative outlook on the stock's performance.
• Analysts have varied opinions on the stock, with one giving a "Strong Buy" rating, while the consensus rating stands at "Moderate Buy" and an average price target of $28.00.
• Recent insider trading includes significant stock sales, with Director Penny Herscher and EVP Jack A. Pacheco each reducing their shares, indicating potential concerns from company leadership.

Penguin Solutions (NASDAQ:PENG - Get Free Report)'s stock had its "sell (d-)" rating reaffirmed by research analysts at Weiss Ratings in a research note issued to investors on Wednesday,Weiss Ratings reports.

A number of other equities analysts also recently weighed in on the company. JPMorgan Chase & Co. upped their price target on Penguin Solutions from $21.00 to $24.00 and gave the stock a "neutral" rating in a research report on Thursday, July 17th. Needham & Company LLC upped their price target on Penguin Solutions from $27.00 to $30.00 and gave the stock a "buy" rating in a research report on Tuesday, July 22nd. Rosenblatt Securities reduced their price target on Penguin Solutions from $36.00 to $30.00 and set a "buy" rating for the company in a research report on Wednesday. Zacks Research downgraded Penguin Solutions from a "strong-buy" rating to a "hold" rating in a report on Monday, September 8th. Finally, The Goldman Sachs Group increased their price objective on Penguin Solutions from $22.50 to $25.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $28.00.

Penguin Solutions Trading Down 16.0%

NASDAQ:PENG opened at $22.67 on Wednesday. Penguin Solutions has a twelve month low of $14.20 and a twelve month high of $29.80. The company has a quick ratio of 2.24, a current ratio of 2.62 and a debt-to-equity ratio of 1.08. The business has a 50 day moving average price of $25.10 and a two-hundred day moving average price of $21.31. The company has a market cap of $1.19 billion, a P/E ratio of 78.18 and a beta of 2.20.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last released its quarterly earnings results on Tuesday, July 8th. The company reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.30 by $0.17. Penguin Solutions had a return on equity of 13.56% and a net margin of 1.82%.The firm had revenue of $324.25 million during the quarter, compared to the consensus estimate of $330.82 million. As a group, analysts expect that Penguin Solutions will post 1.05 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Penny Herscher sold 2,046 shares of the stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $25.42, for a total value of $52,009.32. Following the sale, the director owned 18,222 shares in the company, valued at approximately $463,203.24. This represents a 10.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Jack A. Pacheco sold 63,447 shares of the stock in a transaction on Monday, July 21st. The shares were sold at an average price of $24.83, for a total value of $1,575,389.01. Following the completion of 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 sold 66,175 shares of company stock worth $1,644,448. 2.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Penguin Solutions

A number of institutional investors have recently modified their holdings of PENG. Osaic Holdings Inc. raised its stake in Penguin Solutions by 20.8% in the 2nd quarter. Osaic Holdings Inc. now owns 3,583 shares of the company's stock worth $71,000 after purchasing an additional 617 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its stake in Penguin Solutions by 6.2% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 13,545 shares of the company's stock worth $268,000 after purchasing an additional 792 shares in the last quarter. Inspire Investing LLC increased its position in shares of Penguin Solutions by 3.6% in the second quarter. Inspire Investing LLC now owns 24,293 shares of the company's stock worth $481,000 after purchasing an additional 835 shares during the period. Crews Bank & Trust bought a new position in shares of Penguin Solutions in the first quarter worth $28,000. Finally, CWM LLC increased its position in shares of Penguin Solutions by 82.1% in the second quarter. CWM LLC now owns 4,111 shares of the company's stock worth $81,000 after purchasing an additional 1,854 shares during the period.

Penguin Solutions Company Profile

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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