Penguin Solutions (NASDAQ:PENG) Trading Down 8.2% – Should You Sell?

Penguin Solutions, Inc. (NASDAQ:PENG) traded down 8.2% on Wednesday . The company traded as low as $69.54 and last traded at $69.8110. Approximately 1,414,508 shares were traded during trading, a decline of 32% from the average session volume of 2,092,379 shares. The stock had previously closed at $76.01.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Zacks Research raised shares of Penguin Solutions from a “hold” rating to a “strong-buy” rating in a research report on Tuesday. Rosenblatt Securities upped their target price on Penguin Solutions from $54.00 to $65.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Weiss Ratings downgraded Penguin Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 13th. Barclays cut shares of Penguin Solutions from an “overweight” rating to an “equal weight” rating and boosted their target price for the company from $23.00 to $27.00 in a research note on Wednesday, April 22nd. Finally, Wall Street Zen upgraded Penguin Solutions from a “hold” rating to a “buy” rating in a research report on Sunday, May 17th. One investment 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 company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $36.88.

Penguin Solutions Stock Performance

The company has a current ratio of 2.10, a quick ratio of 1.55 and a debt-to-equity ratio of 1.09. The stock’s fifty day simple moving average is $53.48 and its 200 day simple moving average is $31.74. The company has a market cap of $3.12 billion, a price-to-earnings ratio of 85.38 and a beta of 2.83.

Penguin Solutions (NASDAQ:PENG) last issued its earnings results on Wednesday, April 1st. The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.09. Penguin Solutions had a return on equity of 19.94% and a net margin of 4.07%.The business had revenue of $343.00 million for the quarter, compared to analysts’ expectations of $339.00 million. As a group, analysts anticipate that Penguin Solutions, Inc. will post 1.79 earnings per share for the current year.

Insider Buying and Selling

In other Penguin Solutions news, Director Sandeep Nayyar sold 12,893 shares of the company’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $45.09, for a total value of $581,345.37. Following the completion of the sale, the director directly owned 32,524 shares in the company, valued at $1,466,507.16. This represents a 28.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Anne Kuykendall sold 4,000 shares of the firm’s stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $54.45, for a total value of $217,800.00. Following the completion of the sale, the senior vice president directly owned 124,794 shares of the company’s stock, valued at $6,795,033.30. This trade represents a 3.11% 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. In the last ninety days, insiders have sold 83,120 shares of company stock worth $3,486,734. 2.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Penguin Solutions

A number of hedge funds have recently modified their holdings of the company. Farther Finance Advisors LLC raised its stake in Penguin Solutions by 187.0% during the fourth quarter. Farther Finance Advisors LLC now owns 1,452 shares of the company’s stock worth $28,000 after purchasing an additional 946 shares during the period. Kestra Advisory Services LLC acquired a new stake in shares of Penguin Solutions during the 4th quarter worth approximately $29,000. Raymond James Financial Inc. purchased a new stake in shares of Penguin Solutions during the 2nd quarter valued at approximately $37,000. Allworth Financial LP lifted its holdings in Penguin Solutions by 41.4% in the third quarter. Allworth Financial LP now owns 1,792 shares of the company’s stock valued at $47,000 after acquiring an additional 525 shares during the last quarter. Finally, Torren Management LLC acquired a new position in Penguin Solutions in the fourth quarter valued at approximately $48,000.

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.