Penguin Solutions (NASDAQ:PENG) Shares Gap Down – What’s Next?

Penguin Solutions, Inc. (NASDAQ:PENG) gapped down before the market opened on Friday . The stock had previously closed at $66.77, but opened at $63.20. Penguin Solutions shares last traded at $61.47, with a volume of 476,996 shares.

Wall Street Analyst Weigh In

A number of research firms have issued reports on PENG. Stifel Nicolaus raised their target price on Penguin Solutions from $24.00 to $66.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Weiss Ratings lowered Penguin Solutions from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, May 13th. Zacks Research cut Penguin Solutions from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 1st. Barclays downgraded shares of Penguin Solutions from an “overweight” rating to an “equal weight” rating and raised their price objective for the stock from $23.00 to $27.00 in a research note on Wednesday, April 22nd. Finally, Needham & Company LLC boosted their target price on shares of Penguin Solutions from $25.00 to $27.00 and gave the stock a “buy” rating in a research report on Thursday, April 2nd. Six investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $36.88.

Penguin Solutions Price Performance

The stock has a market cap of $3.17 billion, a P/E ratio of 86.72 and a beta of 2.89. The company has a current ratio of 2.10, a quick ratio of 1.55 and a debt-to-equity ratio of 1.09. The company’s fifty day simple moving average is $49.46 and its 200-day simple moving average is $30.14.

Penguin Solutions (NASDAQ:PENG) last announced its quarterly earnings data on Wednesday, April 1st. The company reported $0.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.09. The company had revenue of $343.00 million during the quarter, compared to analysts’ expectations of $339.00 million. Penguin Solutions had a net margin of 4.07% and a return on equity of 19.94%. As a group, sell-side analysts forecast that Penguin Solutions, Inc. will post 1.79 EPS for the current year.

Insider Buying and Selling at Penguin Solutions

In other Penguin Solutions news, Director Maximiliane C. Straub sold 3,000 shares of Penguin Solutions stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $49.00, for a total transaction of $147,000.00. Following the sale, the director directly owned 51,975 shares of the company’s stock, valued at approximately $2,546,775. The trade was a 5.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Sandeep Nayyar sold 7,107 shares of Penguin Solutions stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $43.48, for a total value of $309,012.36. Following the sale, the director directly owned 25,417 shares in the company, valued at $1,105,131.16. The trade was a 21.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 83,120 shares of company stock worth $3,486,734. Insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Penguin Solutions

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Royal Bank of Canada acquired a new stake in Penguin Solutions in the 1st quarter valued at $7,250,000. Amundi acquired a new position in Penguin Solutions during the first quarter worth $373,000. AQR Capital Management LLC bought a new position in shares of Penguin Solutions during the first quarter valued at $1,076,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of Penguin Solutions during the first quarter valued at $538,000. Finally, Goldman Sachs Group Inc. acquired a new stake in shares of Penguin Solutions in the 1st quarter valued at $3,259,000.

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.