Penguin Solutions (NASDAQ:PENG) Stock Price Up 13.4% – Should You Buy?

Penguin Solutions, Inc. (NASDAQ:PENG)’s share price rose 13.4% during mid-day trading on Wednesday. The company traded as high as $50.73 and last traded at $50.60. 1,203,386 shares traded hands during mid-day trading, a decline of 54% from the average daily volume of 2,605,651 shares. The stock had previously closed at $44.64.

Analyst Upgrades and Downgrades

Several research firms recently commented on PENG. Stifel Nicolaus increased their target price on shares of Penguin Solutions from $75.00 to $85.00 and gave the company a “buy” rating in a report on Wednesday, October 7th. Bank of America assumed coverage on shares of Penguin Solutions in a research report on Friday, October 9th. They set a “buy” rating and a $100.00 price target for the company. Needham & Company LLC raised their price objective on Penguin Solutions from $80.00 to $85.00 and gave the company a “buy” rating in a research note on Wednesday, October 7th. Barclays boosted their target price on Penguin Solutions from $40.00 to $60.00 and gave the company an “underweight” rating in a research note on Wednesday, October 7th. Finally, Deutsche Bank Aktiengesellschaft set a $100.00 target price on Penguin Solutions in a report on Friday, October 9th. One research 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 given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $87.50.

Penguin Solutions Stock Up 11.0%

The company has a market capitalization of $2.98 billion, a P/E ratio of 19.17, a price-to-earnings-growth ratio of 0.54 and a beta of 2.87. The company has a current ratio of 1.88, a quick ratio of 1.25 and a debt-to-equity ratio of 1.37. The stock’s fifty day moving average is $55.44 and its 200 day moving average is $44.76.

Penguin Solutions (NASDAQ:PENG) last announced its quarterly earnings results on Tuesday, October 6th. The company reported $1.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.77 by $0.23. The business had revenue of $566.68 million for the quarter, compared to analyst estimates of $520.99 million. Penguin Solutions had a net margin of 10.43% and a return on equity of 36.71%. During the same quarter last year, the firm earned $0.11 EPS. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. Research analysts predict that Penguin Solutions, Inc. will post 4.05 EPS for the current fiscal year.

Insider Buying and Selling

In other news, SVP Joseph Clark sold 5,773 shares of Penguin Solutions stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $49.66, for a total value of $286,687.18. Following the sale, the senior vice president directly owned 80,080 shares in the company, valued at approximately $3,976,772.80. This trade represents a 6.72% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anthony George Frey sold 4,631 shares of the business’s stock in a transaction that occurred on Thursday, October 29th. The shares were sold at an average price of $58.91, for a total value of $272,812.21. Following the transaction, the senior vice president directly owned 77,853 shares in the company, valued at $4,586,320.23. This trade represents a 5.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,011 shares of company stock valued at $847,239 over the last ninety days. 2.90% of the stock is owned by insiders.

Institutional Trading of Penguin Solutions

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in Penguin Solutions during the 2nd quarter valued at $581,658,000. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in shares of Penguin Solutions during the 2nd quarter valued at about $150,192,000. Paradigm Capital Management Inc. NY bought a new stake in shares of Penguin Solutions during the 2nd quarter valued at about $52,135,000. William Blair Investment Management LLC purchased a new position in shares of Penguin Solutions during the second quarter valued at about $34,207,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Penguin Solutions during the second quarter valued at about $22,503,000.

About Penguin Solutions

Penguin Solutions, formerly known as SMART Global Holdings, provides computing and memory technologies for businesses and public-sector organizations. Its offerings include systems for artificial intelligence, high-performance computing and edge computing, as well as memory modules and storage products. The company’s portfolio includes Penguin Computing solutions for advanced computing and AI workloads, Stratus platforms designed for continuous availability, and SMART Modular memory and storage products.