Penguin Solutions (NASDAQ:PENG) Trading Down 5.9% – Should You Sell?

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

Analysts Set New Price Targets

A number of analysts have recently commented on the stock. Barclays cut shares of Penguin Solutions from an “equal weight” rating to an “underweight” rating and set a $40.00 target price for the company. in a research note on Monday. Rosenblatt Securities lifted their price objective on Penguin Solutions from $65.00 to $75.00 and gave the stock a “buy” rating in a report on Monday, July 6th. Citizens Jmp increased their target price on Penguin Solutions from $65.00 to $85.00 and gave the company a “market outperform” 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 report on Tuesday, June 30th. Finally, Stifel Nicolaus raised their target price on Penguin Solutions from $66.00 to $75.00 and gave the company a “buy” rating in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $63.33.

Penguin Solutions Stock Down 5.9%

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 business has a 50-day moving average price of $62.83 and a 200-day moving average price of $36.77. The firm has a market capitalization of $2.82 billion, a PE ratio of 39.50 and a beta of 2.83.

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

Insider Buying and Selling

In other news, Director Maximiliane C. Straub sold 3,000 shares of the business’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $49.00, for a total transaction of $147,000.00. Following the transaction, the director owned 51,975 shares of the company’s stock, valued at approximately $2,546,775. The trade was a 5.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Anne Kuykendall sold 4,000 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $64.38, for a total transaction of $257,520.00. Following the transaction, the senior vice president directly owned 120,794 shares in the company, valued at approximately $7,776,717.72. The trade was a 3.21% 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 sold 58,351 shares of company stock valued at $2,859,351 over the last 90 days. Insiders own 2.90% of the company’s stock.

Institutional Trading of Penguin Solutions

Hedge funds have recently made changes to their positions in the company. William Blair Investment Management LLC acquired a new position in Penguin Solutions in the fourth quarter valued at approximately $18,290,000. Fisher Asset Management LLC purchased a new position in Penguin Solutions in the fourth quarter worth approximately $716,000. State of Alaska Department of Revenue increased its stake in Penguin Solutions by 98.3% during the fourth quarter. State of Alaska Department of Revenue now owns 47,576 shares of the company’s stock worth $930,000 after acquiring an additional 23,582 shares during the last quarter. M&T Bank Corp increased its stake in Penguin Solutions by 980.0% during the fourth quarter. M&T Bank Corp now owns 109,567 shares of the company’s stock worth $2,143,000 after acquiring an additional 99,422 shares during the last quarter. Finally, Louisiana State Employees Retirement System purchased a new stake in Penguin Solutions in the first quarter valued at $373,000.

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.