Penguin Solutions (NASDAQ:PENG) Shares Down 8.5% – Should You Sell?

Penguin Solutions, Inc. (NASDAQ:PENG)’s share price dropped 8.5% during mid-day trading on Thursday. The stock traded as low as $58.90 and last traded at $61.86. 6,850,390 shares traded hands during trading, an increase of 168% from the average daily volume of 2,555,532 shares. The stock had previously closed at $67.59.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Citizens Jmp boosted their target price on shares of Penguin Solutions from $65.00 to $85.00 and gave the company a “market outperform” rating in a research note on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft set a $100.00 target price on shares of Penguin Solutions in a research report on Friday, October 9th. Barclays lifted their price target on shares of Penguin Solutions from $40.00 to $60.00 and gave the company an “underweight” rating in a report on Wednesday, October 7th. Weiss Ratings reissued a “hold (c)” rating on shares of Penguin Solutions in a report on Friday, October 2nd. Finally, Wall Street Zen lowered shares of Penguin Solutions from a “strong-buy” rating to a “buy” rating in a research report on Sunday, July 26th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $87.50.

Penguin Solutions Trading Down 8.5%

The company has a 50-day simple moving average of $56.34 and a 200-day simple moving average of $51.95. The company has a debt-to-equity ratio of 1.37, a quick ratio of 1.25 and a current ratio of 1.88. The stock has a market cap of $3.17 billion, a P/E ratio of 23.88, a P/E/G ratio of 0.92 and a beta of 2.86.

Penguin Solutions (NASDAQ:PENG) last posted its quarterly earnings data on Tuesday, October 6th. The company reported $1.00 EPS for the quarter, topping analysts’ consensus estimates of $0.77 by $0.23. Penguin Solutions had a return on equity of 36.71% and a net margin of 10.43%. The company had revenue of $566.68 million for the quarter, compared to analyst estimates of $520.99 million. 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. On average, sell-side analysts forecast that Penguin Solutions, Inc. will post 4.05 EPS for the current fiscal year.

Insider Transactions at Penguin Solutions

In related news, SVP Joseph Clark sold 1,327 shares of Penguin Solutions stock in a transaction dated Thursday, July 23rd. The stock was sold at an average price of $57.47, for a total value of $76,262.69. Following the completion of the sale, the senior vice president directly owned 63,056 shares in the company, valued at $3,623,828.32. This trade represents a 2.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $50.58, for a total transaction of $202,320.00. Following the sale, the senior vice president directly owned 112,994 shares of the company’s stock, valued at approximately $5,715,236.52. This trade represents a 3.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Penguin Solutions

Institutional investors and hedge funds have recently made changes to their positions in the company. GK Wealth Management LLC bought a new position in shares of Penguin Solutions during the 3rd quarter valued at about $101,000. GAMMA Investing LLC boosted its stake in shares of Penguin Solutions by 9.1% during the 3rd quarter. GAMMA Investing LLC now owns 5,527 shares of the company’s stock worth $302,000 after buying an additional 462 shares during the last quarter. Central Pacific Bank Trust Division grew its holdings in shares of Penguin Solutions by 14.1% in the 3rd quarter. Central Pacific Bank Trust Division now owns 21,656 shares of the company’s stock valued at $1,184,000 after acquiring an additional 2,680 shares in the last quarter. Polaris Financial Partners bought a new position in shares of Penguin Solutions in the 3rd quarter valued at about $50,000. Finally, Tidal Investments LLC increased its position in shares of Penguin Solutions by 224.6% in the second quarter. Tidal Investments LLC now owns 165,954 shares of the company’s stock valued at $12,614,000 after acquiring an additional 114,821 shares during the last quarter.

About Penguin Solutions

Penguin Solutions, Inc provides intelligent infrastructure solutions for artificial intelligence, high-performance computing, enterprise data centers and other demanding technology environments. The company combines specialized hardware, software and professional services to help organizations design, deploy and manage complex computing infrastructure.

Its offerings include AI and high-performance computing systems, servers, storage and networking infrastructure, as well as software and services for infrastructure management, optimization and support.