Penguin Solutions (NASDAQ:PENG) Shares Gap Up – Time to Buy?

Penguin Solutions, Inc. (NASDAQ:PENG)’s share price gapped up prior to trading on Monday . The stock had previously closed at $59.86, but opened at $64.00. Penguin Solutions shares last traded at $63.3970, with a volume of 598,509 shares.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Zacks Research lowered Penguin Solutions from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 1st. Wall Street Zen upgraded Penguin Solutions from a “hold” rating to a “buy” rating in a research note on Sunday, May 17th. Weiss Ratings downgraded Penguin Solutions from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, May 13th. Needham & Company LLC boosted their target price on Penguin Solutions from $25.00 to $27.00 and gave the stock a “buy” rating in a report on Thursday, April 2nd. Finally, Rosenblatt Securities upped their price objective on Penguin Solutions from $54.00 to $65.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Six analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, Penguin Solutions has a consensus rating of “Moderate Buy” and an average price target of $36.88.

Penguin Solutions Stock Up 9.0%

The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.55 and a current ratio of 2.10. The firm’s 50-day simple moving average is $37.24 and its 200 day simple moving average is $25.75. The company has a market cap of $3.31 billion, a P/E ratio of 91.13 and a beta of 2.89.

Penguin Solutions (NASDAQ:PENG) last released its quarterly earnings data on Wednesday, April 1st. The company reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.43 by $0.09. Penguin Solutions had a net margin of 4.07% and a return on equity of 19.94%. The business had revenue of $343.00 million during the quarter, compared to analysts’ expectations of $339.00 million. On average, research analysts forecast that Penguin Solutions, Inc. will post 1.79 earnings per share for the current fiscal year.

Insider Activity

In related news, SVP Anne Kuykendall sold 4,000 shares of the company’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $54.45, for a total value of $217,800.00. Following the completion of the sale, the senior vice president owned 124,794 shares in the company, valued at $6,795,033.30. This represents a 3.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sandeep Nayyar sold 7,107 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $43.48, for a total value of $309,012.36. Following the transaction, the director owned 25,417 shares of the company’s stock, valued at approximately $1,105,131.16. This trade represents a 21.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 83,120 shares of company stock worth $3,300,214 in the last 90 days. Corporate insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Penguin Solutions

A number of large investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in shares of Penguin Solutions by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 6,592,564 shares of the company’s stock worth $173,253,000 after buying an additional 25,804 shares during the last quarter. State Street Corp lifted its position in Penguin Solutions by 3.2% during the fourth quarter. State Street Corp now owns 2,957,938 shares of the company’s stock worth $57,857,000 after acquiring an additional 91,805 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in Penguin Solutions by 4.2% during the fourth 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. lifted its position in Penguin Solutions by 596.8% during the fourth 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 last quarter. Finally, Paradigm Capital Management Inc. NY lifted its position in Penguin Solutions by 73.8% during the first 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 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.