Penguin Solutions (NASDAQ:PENG) Stock Falls 8.1% – Here’s Why

Penguin Solutions, Inc. (NASDAQ:PENG)’s stock price traded down 8.1% during trading on Wednesday. The stock traded as low as $71.88 and last traded at $71.8550. Approximately 1,411,501 shares were traded during mid-day trading, a decline of 44% from the average session volume of 2,510,118 shares. The stock had previously closed at $78.20.

Wall Street Analyst Weigh In

PENG has been the subject of a number of recent analyst reports. Barclays raised their price objective on shares of Penguin Solutions from $40.00 to $60.00 and gave the stock an “underweight” rating in a research note on Wednesday, October 7th. Deutsche Bank Aktiengesellschaft set a $100.00 target price on shares of Penguin Solutions in a research note on Friday, October 9th. Stifel Nicolaus increased their target price on Penguin Solutions from $75.00 to $85.00 and gave the company a “buy” rating in a report on Wednesday, October 7th. Zacks Research upgraded Penguin Solutions from a “hold” rating to a “strong-buy” rating in a report on Friday, October 9th. Finally, Bank of America initiated coverage on Penguin Solutions in a research report on Friday, October 9th. They issued a “buy” rating and a $100.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $87.50.

Penguin Solutions Stock Down 8.5%

The company has a market cap of $3.17 billion, a price-to-earnings ratio of 28.16, a P/E/G ratio of 0.80 and a beta of 2.86. The company has a current ratio of 1.88, a quick ratio of 1.25 and a debt-to-equity ratio of 1.37. The business has a fifty day moving average price of $56.46 and a two-hundred day moving average price of $52.27.

Penguin Solutions (NASDAQ:PENG) last posted its quarterly earnings results on Tuesday, October 6th. The company reported $1.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.77 by $0.23. The business had revenue of $566.68 million during the quarter, compared to analyst estimates of $520.99 million. Penguin Solutions had a net margin of 10.43% and a return on equity of 36.71%. During the same period in the prior 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, equities analysts predict that Penguin Solutions, Inc. will post 4.05 earnings per share for the current year.

Insider Buying and Selling at Penguin Solutions

In related news, SVP Anne Kuykendall sold 4,000 shares of Penguin Solutions stock in a transaction 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 completion of the sale, the senior vice president 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. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 1,327 shares of Penguin Solutions stock in a transaction on Thursday, July 23rd. The shares were sold at an average price of $57.47, for a total value of $76,262.69. Following the sale, the senior vice president directly owned 63,056 shares of the company’s stock, valued at approximately $3,623,828.32. The trade was a 2.06% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of PENG. BlackRock Inc. acquired a new stake in shares of Penguin Solutions during the 2nd quarter valued at about $581,658,000. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in shares of Penguin Solutions in the 2nd quarter valued at approximately $150,192,000. Paradigm Capital Management Inc. NY acquired a new position in Penguin Solutions in the second quarter worth approximately $52,135,000. William Blair Investment Management LLC acquired a new position in Penguin Solutions in the second quarter worth approximately $34,207,000. Finally, Bank of New York Mellon Corp acquired a new position in Penguin Solutions in the second quarter worth approximately $22,503,000.

Penguin Solutions Company Profile

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.