Penguin Solutions, Inc. (NASDAQ:PENG – Get Free Report)’s share price was down 16.5% during trading on Thursday following insider selling activity. The stock traded as low as $41.54 and last traded at $40.3560. Approximately 495,950 shares were traded during mid-day trading, a decline of 81% from the average session volume of 2,584,590 shares. The stock had previously closed at $48.35.
Specifically, SVP Joseph Clark sold 5,773 shares of the stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $49.66, for a total transaction of $286,687.18. Following the transaction, the senior vice president owned 80,080 shares in the company, valued at approximately $3,976,772.80. This represents a 6.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anthony George Frey sold 4,631 shares of the firm’s stock in a transaction on Thursday, October 29th. The shares were sold at an average price of $58.91, for a total value of $272,812.21. Following the completion of the transaction, the senior vice president owned 77,853 shares in the company, valued at $4,586,320.23. The trade was a 5.61% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Wall Street Analysts Forecast Growth
A number of equities research analysts recently issued reports on PENG shares. Weiss Ratings raised shares of Penguin Solutions from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, October 16th. Rosenblatt Securities reaffirmed a “buy” rating and set a $100.00 price target on shares of Penguin Solutions in a research report on Wednesday. The Goldman Sachs Group reissued a “buy” rating and set a $85.00 target price on shares of Penguin Solutions in a research note on Wednesday, October 7th. Barclays raised their price objective on shares of Penguin Solutions from $40.00 to $60.00 and gave the stock an “underweight” rating in a research note on Wednesday, October 7th. Finally, Citizens Jmp upped their target price on Penguin Solutions from $65.00 to $85.00 and gave the company a “market outperform” rating in a research note on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Penguin Solutions has a consensus rating of “Moderate Buy” and a consensus target price of $87.50.
Key Penguin Solutions News
Here are the key news stories impacting Penguin Solutions this week:
- Positive Sentiment: SK Hynix stake: The memory-chip maker reportedly took a 9.1% activist stake in Penguin Solutions. The investment could bring strategic support and strengthen Penguin’s ties to the AI and memory markets, though the article does not detail specific plans. Article: SK Hynix Takes a 9.1% Activist Stake in Penguin Solutions
- Positive Sentiment: Cree LED sale: Penguin agreed to sell Cree LED to Transom Capital Group, saying the move will let it focus on AI growth. A sharper focus on its AI-related businesses may support its strategic direction; the cited reports do not specify sale proceeds. Article: Penguin Solutions Announces Agreement to Sell Cree LED to Transom Capital Group
- Positive Sentiment: Analyst support: Rosenblatt Securities reaffirmed its Buy rating and set a $100 price target, indicating substantial upside in its assessment. Rosenblatt Securities rating information
- Neutral Sentiment: AI platform showcase: Penguin plans to present full-stack AI Factory platform innovations at SC26. The event could raise visibility for its offerings, but the announcement alone does not establish near-term revenue impact. Article: Penguin Solutions Showcases Full-Stack AI Factory Platform Innovations At SC26
- Negative Sentiment: Executive share sale: SVP Joseph Clark sold 5,773 shares, reducing his holdings by 6.72%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which may lessen its signaling significance. Article: Penguin Solutions SVP Sells 5,773 Shares
- Negative Sentiment: Execution and valuation concerns: A recent commentary says the stock trades at a low multiple and argues the next report must demonstrate that earnings are sustainable. That puts focus on proving the durability of results. Article: Penguin Solutions “Sells at a Low Multiple.” Its Next Report Has to Prove the Earnings Behind It
Penguin Solutions Stock Performance
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 market cap of $2.37 billion, a price-to-earnings ratio of 15.29, a PEG ratio of 0.63 and a beta of 2.87. The company has a 50 day moving average of $56.11 and a 200 day moving average of $44.32.
Penguin Solutions (NASDAQ:PENG – Get Free Report) last issued its quarterly earnings results on Tuesday, October 6th. The company reported $1.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.77 by $0.23. The business had revenue of $566.68 million during the quarter, compared to analyst estimates of $520.99 million. Penguin Solutions had a net margin of 10.43% and a return on equity of 36.71%. During the same quarter in the previous year, the firm earned $0.11 earnings per share. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. As a group, equities research analysts expect that Penguin Solutions, Inc. will post 4.05 EPS for the current fiscal year.
Institutional Inflows and Outflows
A number of large investors have recently modified their holdings of the business. Global Retirement Partners LLC bought a new position in shares of Penguin Solutions during the second quarter valued at approximately $26,000. Allworth Financial LP acquired a new stake in Penguin Solutions in the 2nd quarter valued at about $37,000. Nykredit A S acquired a new position in Penguin Solutions in the second quarter worth approximately $42,000. Polaris Financial Partners purchased a new stake in Penguin Solutions during the third quarter valued at about $50,000. Finally, Public Employees Retirement System of Ohio purchased a new position in Penguin Solutions during the 2nd quarter worth approximately $74,000.
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.
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