Penguin Solutions (NASDAQ:PENG) Stock Jumps 10.7% – Here’s What Happened

Penguin Solutions, Inc. (NASDAQ:PENG) shares shot up 10.7% on Tuesday. The stock traded as high as $53.30 and last traded at $52.5780. Approximately 649,390 shares were traded during mid-day trading, a decline of 75% from the average session volume of 2,579,077 shares. The stock had previously closed at $47.50.

Wall Street Analyst Weigh In

Several research firms have weighed in on PENG. Bank of America initiated coverage on Penguin Solutions in a research report on Friday, October 9th. They set a “buy” rating and a $100.00 price objective on the stock. Stifel Nicolaus boosted their target price on shares of Penguin Solutions from $75.00 to $85.00 and gave the company a “buy” rating in a research report on Wednesday, October 7th. Zacks Research upgraded shares of Penguin Solutions from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 9th. Citigroup reaffirmed an “outperform” rating on shares of Penguin Solutions in a research report on Wednesday, July 8th. Finally, Weiss Ratings raised shares of Penguin Solutions from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, October 16th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $87.50.

Penguin Solutions Trading Up 12.3%

The company has a market cap of $3.21 billion, a price-to-earnings ratio of 20.57, a PEG ratio of 0.72 and a beta of 2.86. The company has a quick ratio of 1.25, a current ratio of 1.88 and a debt-to-equity ratio of 1.37. The firm has a 50 day moving average price of $56.10 and a two-hundred day moving average price of $44.01.

Penguin Solutions (NASDAQ:PENG) last posted its quarterly earnings data on Tuesday, October 6th. The company reported $1.00 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.23. Penguin Solutions had a net margin of 10.43% and a return on equity of 36.71%. The company had revenue of $566.68 million during the quarter, compared to analysts’ expectations of $520.99 million. During the same period in the prior year, the company posted $0.11 earnings per share. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. As a group, equities analysts forecast that Penguin Solutions, Inc. will post 4.05 earnings per share for the current year.

Insider Buying and Selling at Penguin Solutions

In other Penguin Solutions news, SVP Anthony George Frey sold 4,631 shares of the stock in a transaction that occurred on Thursday, October 29th. The stock was sold at an average price of $58.91, for a total transaction of $272,812.21. Following the transaction, the senior vice president directly owned 77,853 shares in the company, valued at approximately $4,586,320.23. This represents a 5.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $50.58, for a total transaction of $202,320.00. Following the sale, the senior vice president directly owned 112,994 shares of the company’s stock, valued at approximately $5,715,236.52. This trade represents a 3.42% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 10,238 shares of company stock valued at $560,552. 2.90% of the stock is currently owned by company insiders.

Institutional Trading of Penguin Solutions

Several institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. bought a new position in shares of Penguin Solutions in the second quarter valued at approximately $581,658,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in Penguin Solutions in the second quarter worth $150,192,000. Paradigm Capital Management Inc. NY bought a new position in Penguin Solutions in the 2nd quarter valued at $52,135,000. William Blair Investment Management LLC bought a new position in Penguin Solutions in the 2nd quarter valued at $34,207,000. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Penguin Solutions during the 2nd quarter valued at $22,503,000.

About Penguin Solutions

Penguin Solutions, Inc provides technology products and services for data center, cloud, artificial intelligence, high-performance computing, edge computing and embedded applications. The company designs and delivers memory products, computing platforms and integrated infrastructure intended to help organizations manage demanding workloads and deploy specialized technology environments.

Its offerings include memory modules and other memory-related products, high-performance computing systems, servers, storage and networking solutions, and software and services for infrastructure management.