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

Penguin Solutions, Inc. (NASDAQ:PENG) gapped up prior to trading 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.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Stifel Nicolaus increased their price objective on shares of Penguin Solutions from $66.00 to $75.00 and gave the company a “buy” rating in a report on Wednesday, July 8th. Rosenblatt Securities boosted their target price on shares of Penguin Solutions from $65.00 to $75.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Weiss Ratings upgraded shares of Penguin Solutions from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 8th. Citigroup reaffirmed an “outperform” rating on shares of Penguin Solutions in a research note on Wednesday, July 8th. Finally, Zacks Research upgraded Penguin Solutions from a “hold” rating to a “strong-buy” rating in a report on Tuesday, June 30th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Penguin Solutions has an average rating of “Moderate Buy” and a consensus target price of $57.71.

Penguin Solutions Stock Down 8.2%

The company has a current ratio of 1.54, a quick ratio of 1.10 and a debt-to-equity ratio of 0.65. The business has a fifty day simple moving average of $60.42 and a two-hundred day simple moving average of $34.74. The company has a market cap of $3.66 billion, a PE ratio of 50.37 and a beta of 2.83.

Penguin Solutions (NASDAQ:PENG) last issued 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 business had revenue of $478.71 million during 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 period in the prior year, the business earned $0.52 earnings per share. As a group, equities research analysts predict that Penguin Solutions, Inc. will post 2.08 earnings per share for the current year.

Insider Buying and Selling at Penguin Solutions

In other news, SVP Joseph Gates Clark sold 10,351 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $58.87, for a total transaction of $609,363.37. Following the transaction, the senior vice president directly owned 66,425 shares in the company, valued at $3,910,439.75. The trade was a 13.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $64.38, for a total value of $257,520.00. Following the transaction, the senior vice president owned 120,794 shares in the company, valued at approximately $7,776,717.72. This represents a 3.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 70,574 shares of company stock worth $3,203,822 in the last 90 days. 2.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Penguin Solutions

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

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.