Penguin Solutions (NASDAQ:PENG) Shares Gap Up – Still a Buy?

Penguin Solutions, Inc. (NASDAQ:PENG)’s share price gapped up before the market opened on Wednesday . The stock had previously closed at $77.80, but opened at $81.60. Penguin Solutions shares last traded at $78.8270, with a volume of 2,816,119 shares traded.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on PENG shares. Wall Street Zen raised shares of Penguin Solutions from a “hold” rating to a “buy” rating in a research note on Sunday, May 17th. Rosenblatt Securities increased their price target on shares of Penguin Solutions from $65.00 to $75.00 and gave the company a “buy” rating in a research note on Monday, July 6th. Citigroup restated an “outperform” rating on shares of Penguin Solutions in a report on Wednesday, July 8th. Stifel Nicolaus lifted their price target on shares of Penguin Solutions from $66.00 to $75.00 and gave the company a “buy” rating in a research report on Wednesday, July 8th. Finally, Citizens Jmp upped their price objective on Penguin Solutions from $65.00 to $85.00 and gave the company a “market outperform” rating in a report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Penguin Solutions currently has an average rating of “Moderate Buy” and an average price target of $57.71.

Penguin Solutions Stock Down 8.2%

The stock has a market capitalization of $3.66 billion, a price-to-earnings ratio of 50.37 and a beta of 2.83. The business has a 50-day moving average of $60.42 and a 200-day moving average of $34.74. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.10 and a current ratio of 1.54.

Penguin Solutions (NASDAQ:PENG) last posted its earnings results on Tuesday, July 7th. The company reported $0.84 EPS for the quarter, beating analysts’ consensus estimates of $0.63 by $0.21. The company had revenue of $478.71 million for the quarter, compared to analysts’ expectations of $407.47 million. Penguin Solutions had a net margin of 6.44% and a return on equity of 28.23%. During the same quarter in the prior year, the company posted $0.52 earnings per share. On average, sell-side analysts expect that Penguin Solutions, Inc. will post 2.08 EPS for the current year.

Insider Activity at Penguin Solutions

In related news, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $64.38, for a total transaction of $257,520.00. Following the completion of the transaction, the senior vice president owned 120,794 shares of the company’s stock, valued at approximately $7,776,717.72. This trade represents a 3.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Maximiliane C. Straub sold 3,000 shares of Penguin Solutions stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $49.00, for a total transaction of $147,000.00. Following the completion of the sale, the director owned 51,975 shares of the company’s stock, valued at $2,546,775. This trade represents a 5.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 70,574 shares of company stock valued at $3,203,822 over the last 90 days. Insiders own 2.90% of the company’s stock.

Institutional Trading of Penguin Solutions

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PENG. State Street Corp lifted its stake in Penguin Solutions by 3.2% during the fourth quarter. State Street Corp now owns 2,957,938 shares of the company’s stock worth $57,857,000 after purchasing an additional 91,805 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Penguin Solutions by 4.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,388,748 shares of the company’s stock valued at $46,726,000 after buying an additional 95,585 shares in the last quarter. Invesco Ltd. grew its stake in shares of Penguin Solutions by 596.8% in the fourth quarter. Invesco Ltd. now owns 1,992,415 shares of the company’s stock valued at $38,972,000 after buying an additional 1,706,482 shares in the last quarter. Paradigm Capital Management Inc. NY raised its holdings in shares of Penguin Solutions by 73.8% in the 1st quarter. Paradigm Capital Management Inc. NY now owns 1,605,100 shares of the company’s stock valued at $28,250,000 after buying an additional 681,700 shares during the period. Finally, Ophir Asset Management Pty Ltd raised its holdings in shares of Penguin Solutions by 234.3% in the 4th quarter. Ophir Asset Management Pty Ltd now owns 1,211,612 shares of the company’s stock valued at $23,699,000 after buying an additional 849,178 shares during the period.

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.