Penguin Solutions (NASDAQ:PENG) Hits New 12-Month High – Should You Buy?

Penguin Solutions, Inc. (NASDAQ:PENG)’s share price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $28.11 and last traded at $27.90, with a volume of 908093 shares traded. The stock had previously closed at $27.53.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on PENG shares. Rosenblatt Securities reaffirmed a “buy” rating and set a $27.00 target price on shares of Penguin Solutions in a research report on Monday, August 11th. JPMorgan Chase & Co. boosted their target price on Penguin Solutions from $21.00 to $24.00 and gave the stock a “neutral” rating in a research report on Thursday, July 17th. Loop Capital boosted their target price on Penguin Solutions from $30.00 to $35.00 and gave the stock a “buy” rating in a research report on Monday, July 14th. Wall Street Zen lowered Penguin Solutions from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 12th. Finally, The Goldman Sachs Group boosted their target price on Penguin Solutions from $22.50 to $25.00 and gave the stock a “buy” rating in a research report on Wednesday, July 9th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $27.13.

Penguin Solutions Stock Performance

The company has a market cap of $1.46 billion, a P/E ratio of -99.64 and a beta of 2.13. The firm has a 50 day moving average price of $24.61 and a 200-day moving average price of $20.63. The company has a debt-to-equity ratio of 1.08, a quick ratio of 2.24 and a current ratio of 2.62.

Penguin Solutions (NASDAQ:PENG) last released its quarterly earnings results on Tuesday, July 8th. The company reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.17. The company had revenue of $324.25 million during the quarter, compared to the consensus estimate of $330.82 million. Penguin Solutions had a positive return on equity of 13.27% and a negative net margin of 0.68%. Penguin Solutions has set its FY 2025 guidance at 1.750-1.850 EPS. On average, research analysts predict that Penguin Solutions, Inc. will post 1.05 EPS for the current year.

Insider Activity

In related news, Director Penny Herscher sold 2,046 shares of the business’s stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $25.42, for a total transaction of $52,009.32. Following the completion of the transaction, the director owned 18,222 shares of the company’s stock, valued at approximately $463,203.24. The trade was a 10.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Jack A. Pacheco sold 63,447 shares of the business’s stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $24.83, for a total value of $1,575,389.01. Following the transaction, the executive vice president directly owned 227,231 shares of the company’s stock, valued at $5,642,145.73. This represents a 21.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 66,175 shares of company stock valued at $1,644,448 in the last three months. 2.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Penguin Solutions

Several large investors have recently added to or reduced their stakes in PENG. Vanguard Group Inc. acquired a new position in Penguin Solutions in the 1st quarter valued at approximately $111,458,000. Alliancebernstein L.P. acquired a new position in Penguin Solutions in the 1st quarter valued at approximately $28,919,000. Paradigm Capital Management Inc. NY acquired a new position in Penguin Solutions in the 1st quarter valued at approximately $19,545,000. Think Investments LP acquired a new position in Penguin Solutions in the 1st quarter valued at approximately $15,713,000. Finally, Charles Schwab Investment Management Inc. acquired a new position in Penguin Solutions in the 1st quarter valued at approximately $14,786,000.

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.