Penguin Solutions (NASDAQ:PENG) Shares Down 5.9% – Here’s Why

Penguin Solutions, Inc. (NASDAQ:PENG)’s share price was down 5.9% during trading on Friday . The stock traded as low as $55.21 and last traded at $54.9790. Approximately 1,139,758 shares were traded during mid-day trading, a decline of 54% from the average daily volume of 2,482,976 shares. The stock had previously closed at $58.41.

Analyst Upgrades and Downgrades

Several analysts have weighed in on PENG shares. Citizens Jmp boosted their target price on shares of Penguin Solutions from $65.00 to $85.00 and gave the stock a “market outperform” rating in a research report on Wednesday, July 8th. Needham & Company LLC increased their price objective on Penguin Solutions from $60.00 to $80.00 and gave the company a “buy” rating in a report on Wednesday, July 8th. Zacks Research upgraded Penguin Solutions from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, June 30th. Stifel Nicolaus increased their price objective on shares of Penguin Solutions from $66.00 to $75.00 and gave the stock a “buy” rating in a research note on Wednesday, July 8th. Finally, Wall Street Zen raised shares of Penguin Solutions from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 18th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $63.33.

Penguin Solutions Stock Performance

The company has a market capitalization of $2.82 billion, a PE ratio of 39.50 and a beta of 2.83. The firm has a 50-day moving average of $62.83 and a two-hundred day moving average of $36.77. The company has a quick ratio of 1.10, a current ratio of 1.54 and a debt-to-equity ratio of 0.65.

Penguin Solutions (NASDAQ:PENG) last released its quarterly earnings data on Tuesday, July 7th. The company reported $0.84 EPS for the quarter, topping the consensus estimate of $0.63 by $0.21. The business had revenue of $478.71 million for the quarter, compared to analyst estimates of $407.47 million. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.During the same quarter in the prior year, the firm posted $0.52 EPS. Research analysts anticipate that Penguin Solutions, Inc. will post 2.08 EPS for the current year.

Insider Activity

In related news, Director Maximiliane C. Straub sold 3,000 shares of Penguin Solutions stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $49.00, for a total value of $147,000.00. Following the completion of the transaction, the director owned 51,975 shares in the company, valued at $2,546,775. The trade was a 5.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Joseph Gates Clark sold 10,351 shares of the company’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $58.87, for a total value of $609,363.37. Following the completion of the transaction, the senior vice president directly owned 66,425 shares of the company’s stock, valued at $3,910,439.75. The trade was a 13.48% 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. Insiders have sold a total of 58,351 shares of company stock worth $2,859,351 in the last ninety days. Corporate insiders own 2.90% of the company’s stock.

Institutional Trading of Penguin Solutions

Institutional investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP purchased a new stake in shares of Penguin Solutions in the third quarter valued at approximately $60,264,000. Invesco Ltd. lifted its position in shares of Penguin Solutions by 596.8% during the 4th quarter. Invesco Ltd. now owns 1,992,415 shares of the company’s stock valued at $38,972,000 after buying an additional 1,706,482 shares in the last quarter. William Blair Investment Management LLC acquired a new stake in Penguin Solutions in the 4th quarter valued at $18,290,000. Ophir Asset Management Pty Ltd grew its stake in Penguin Solutions by 234.3% in the 4th quarter. Ophir Asset Management Pty Ltd now owns 1,211,612 shares of the company’s stock valued at $23,699,000 after acquiring an additional 849,178 shares during the period. Finally, Paradigm Capital Management Inc. NY grew its stake in Penguin Solutions by 73.8% in the 1st quarter. Paradigm Capital Management Inc. NY now owns 1,605,100 shares of the company’s stock valued at $28,250,000 after acquiring an additional 681,700 shares during the period.

About Penguin Solutions

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.