Penguin Solutions (NASDAQ:PENG) Trading Down 8.9% – Here’s Why

Penguin Solutions, Inc. (NASDAQ:PENG) fell 8.9% on Thursday . The company traded as low as $66.10 and last traded at $66.3390. Approximately 982,124 shares changed hands during trading, a decline of 59% from the average daily volume of 2,424,816 shares. The stock had previously closed at $72.85.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on PENG. Weiss Ratings upgraded Penguin Solutions from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 8th. Wall Street Zen raised shares of Penguin Solutions from a “hold” rating to a “buy” rating in a research report on Sunday, May 17th. Citigroup restated an “outperform” rating on shares of Penguin Solutions in a report on Wednesday, July 8th. Needham & Company LLC lifted their price objective on shares of Penguin Solutions from $60.00 to $80.00 and gave the stock a “buy” rating in a research report on Wednesday, July 8th. Finally, Barclays boosted their price objective on shares of Penguin Solutions from $27.00 to $40.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $57.71.

Penguin Solutions Stock Down 10.9%

The firm has a market capitalization of $3.33 billion, a price-to-earnings ratio of 46.22 and a beta of 2.83. The company has a quick ratio of 1.10, a current ratio of 1.54 and a debt-to-equity ratio of 0.65. The company’s 50 day moving average price is $61.09 and its 200 day moving average price is $35.11.

Penguin Solutions (NASDAQ:PENG) last released its earnings results on Tuesday, July 7th. The company reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.21. The firm had revenue of $478.71 million for the quarter, compared to the consensus estimate of $407.47 million. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.During the same period in the prior year, the firm earned $0.52 EPS. As a group, research analysts forecast that Penguin Solutions, Inc. will post 2.08 earnings per share for the current fiscal year.

Insider Transactions at Penguin Solutions

In related news, Director Maximiliane C. Straub sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $49.00, for a total value of $147,000.00. Following the sale, the director owned 51,975 shares in the company, valued at $2,546,775. This represents a 5.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Sandeep Nayyar sold 7,107 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $43.48, for a total transaction of $309,012.36. Following the completion of the transaction, the director owned 25,417 shares in the company, valued at approximately $1,105,131.16. This trade represents a 21.85% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 65,574 shares of company stock worth $3,069,722 in the last ninety days. Corporate insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in PENG. Dimensional Fund Advisors LP acquired a new stake in Penguin Solutions during the 3rd quarter worth about $60,264,000. Invesco Ltd. lifted its holdings in shares of Penguin Solutions by 596.8% in 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 during the period. William Blair Investment Management LLC purchased a new stake in shares of Penguin Solutions in the fourth quarter worth about $18,290,000. Ophir Asset Management Pty Ltd boosted its stake in shares of Penguin Solutions by 234.3% in the fourth quarter. Ophir Asset Management Pty Ltd now owns 1,211,612 shares of the company’s stock worth $23,699,000 after buying an additional 849,178 shares during the last quarter. Finally, Paradigm Capital Management Inc. NY grew its holdings 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 period.

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.