Penguin Solutions (NASDAQ:PENG) Shares Up 7.4% – Here’s Why

Penguin Solutions, Inc. (NASDAQ:PENG)’s stock price traded up 7.4% during trading on Friday . The stock traded as high as $29.50 and last traded at $29.6540. 972,478 shares changed hands during mid-day trading, a decline of 27% from the average session volume of 1,331,700 shares. The stock had previously closed at $27.61.

Wall Street Analyst Weigh In

PENG has been the topic of a number of research reports. Rosenblatt Securities reaffirmed a “buy” rating and set a $30.00 target price on shares of Penguin Solutions in a research note on Monday, March 30th. Zacks Research raised Penguin Solutions from a “hold” rating to a “strong-buy” rating in a report on Tuesday, April 7th. Weiss Ratings upgraded Penguin Solutions from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, April 6th. Stifel Nicolaus lowered their target price on Penguin Solutions from $27.00 to $24.00 and set a “buy” rating for the company in a report on Thursday, April 2nd. Finally, Barclays lowered Penguin Solutions from an “overweight” rating to an “equal weight” rating and lifted their price target for the company from $23.00 to $27.00 in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $27.25.

Penguin Solutions Price Performance

The stock has a market cap of $1.52 billion, a P/E ratio of 41.43 and a beta of 2.23. The company’s 50 day moving average price is $20.45 and its 200-day moving average price is $20.54. The company has a quick ratio of 1.55, a current ratio of 2.10 and a debt-to-equity ratio of 1.09.

Penguin Solutions (NASDAQ:PENG) last issued its quarterly earnings data on Wednesday, April 1st. The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.09. The company had revenue of $343.00 million for 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 expect that Penguin Solutions, Inc. will post 1.66 earnings per share for the current year.

Insider Activity

In related news, SVP Joseph Gates Clark sold 5,000 shares of the company’s stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $26.82, for a total value of $134,100.00. Following the sale, the senior vice president directly owned 95,549 shares in the company, valued at $2,562,624.18. This represents a 4.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $17.75, for a total transaction of $71,000.00. Following the sale, the senior vice president directly owned 131,352 shares of the company’s stock, valued at $2,331,498. This represents a 2.96% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 23,630 shares of company stock valued at $534,232. Insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Penguin Solutions

A number of institutional investors have recently modified their holdings of the company. Farther Finance Advisors LLC raised its stake in Penguin Solutions by 187.0% during the fourth quarter. Farther Finance Advisors LLC now owns 1,452 shares of the company’s stock worth $28,000 after buying an additional 946 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in Penguin Solutions during the fourth quarter valued at $29,000. Strs Ohio acquired a new stake in Penguin Solutions during the 3rd quarter worth about $42,000. Jones Financial Companies Lllp grew its holdings in Penguin Solutions by 4,131.7% during the 3rd quarter. Jones Financial Companies Lllp now owns 1,735 shares of the company’s stock worth $45,000 after acquiring an additional 1,694 shares during the period. Finally, Allworth Financial LP raised its position in shares of Penguin Solutions by 41.4% in the 3rd quarter. Allworth Financial LP now owns 1,792 shares of the company’s stock worth $47,000 after acquiring an additional 525 shares in the last quarter.

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.