Penguin Solutions (NASDAQ:PENG) Releases Quarterly Earnings Results, Beats Expectations By $0.23 EPS

Penguin Solutions (NASDAQ:PENG) announced its earnings results on Tuesday. The company reported $1.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.77 by $0.23, FiscalAI reports. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.The company had revenue of $566.68 million for the quarter, compared to analyst estimates of $520.99 million. Penguin Solutions updated its FY 2027 guidance to 3.750-5.15 EPS.

Penguin Solutions Stock Up 5.8%

Penguin Solutions stock traded up $3.50 during mid-day trading on Tuesday, hitting $64.21. 14,327,844 shares of the company’s stock were exchanged, compared to its average volume of 2,335,094. Penguin Solutions has a 1-year low of $16.04 and a 1-year high of $89.86. The stock has a 50 day moving average of $53.39 and a two-hundred day moving average of $49.24. 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 stock has a market cap of $3.29 billion, a P/E ratio of 45.54 and a beta of 2.86.

Wall Street Analyst Weigh In

PENG has been the subject of a number of analyst reports. Stifel Nicolaus upped their price objective on shares of Penguin Solutions from $66.00 to $75.00 and gave the company a “buy” rating in a research note on Wednesday, July 8th. Citizens Jmp raised their price objective on shares of Penguin Solutions from $65.00 to $85.00 and gave the stock a “market outperform” rating in a research note on Wednesday, July 8th. Barclays lowered Penguin Solutions from an “equal weight” rating to an “underweight” rating and set a $40.00 target price for the company. in a report on Monday, July 20th. Wall Street Zen downgraded Penguin Solutions from a “strong-buy” rating to a “buy” rating in a report on Sunday, July 26th. Finally, Citigroup restated an “outperform” rating on shares of Penguin Solutions in a research report on Wednesday, July 8th. Six investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $64.17.

Insider Activity

In other news, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $50.58, for a total transaction of $202,320.00. Following the transaction, the senior vice president owned 112,994 shares of the company’s stock, valued at approximately $5,715,236.52. This represents a 3.42% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 1,327 shares of the company’s stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $57.47, for a total transaction of $76,262.69. Following the sale, the senior vice president directly owned 63,056 shares of the company’s stock, valued at approximately $3,623,828.32. This represents a 2.06% 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. Corporate insiders own 2.90% of the company’s stock.

Penguin Solutions Company Profile

Penguin Solutions, Inc provides intelligent infrastructure solutions for artificial intelligence, high-performance computing, enterprise data centers and other demanding technology environments. The company combines specialized hardware, software and professional services to help organizations design, deploy and manage complex computing infrastructure.

Its offerings include AI and high-performance computing systems, servers, storage and networking infrastructure, as well as software and services for infrastructure management, optimization and support.