Penguin Solutions (NASDAQ:PENG) Trading Down 6.6% – Should You Sell?

Penguin Solutions, Inc. (NASDAQ:PENG) fell 6.6% during mid-day trading on Wednesday . The company traded as low as $54.54 and last traded at $54.5160. 201,074 shares traded hands during trading, a decline of 92% from the average daily volume of 2,440,445 shares. The stock had previously closed at $58.36.

Analyst Ratings Changes

A number of research firms recently commented on PENG. Weiss Ratings upgraded Penguin Solutions from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 8th. Citizens Jmp lifted their target price on Penguin Solutions from $65.00 to $85.00 and gave the company a “market outperform” rating in a research report on Wednesday, July 8th. Stifel Nicolaus upped their price target on Penguin Solutions from $66.00 to $75.00 and gave the company a “buy” rating in a research note on Wednesday, July 8th. Rosenblatt Securities increased their price target on Penguin Solutions from $65.00 to $75.00 and gave the stock a “buy” rating in a report on Monday, July 6th. Finally, Barclays downgraded Penguin Solutions from an “equal weight” rating to an “underweight” rating and set a $40.00 price objective for the company. in a research report on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Penguin Solutions has an average rating of “Moderate Buy” and an average target price of $63.33.

Penguin Solutions Stock Down 5.9%

The business has a 50 day simple moving average of $62.44 and a 200 day simple moving average of $41.28. The company has a market capitalization of $2.81 billion, a price-to-earnings ratio of 38.95 and a beta of 2.87. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.54 and a quick ratio of 1.10.

Penguin Solutions (NASDAQ:PENG) last issued its quarterly earnings data on Tuesday, July 7th. The company reported $0.84 earnings per share for the quarter, beating analysts’ consensus estimates of $0.63 by $0.21. The business had revenue of $478.71 million during the quarter, compared to analysts’ expectations of $407.47 million. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.During the same period in the previous year, the firm posted $0.52 earnings per share. As a group, equities analysts predict that Penguin Solutions, Inc. will post 2.08 earnings per share for the current fiscal year.

Insider Transactions at Penguin Solutions

In other news, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $54.45, for a total transaction of $217,800.00. Following the sale, the senior vice president owned 124,794 shares of the company’s stock, valued at approximately $6,795,033.30. This represents a 3.11% 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 Joseph Gates Clark sold 10,351 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $58.87, for a total transaction of $609,363.37. Following the completion of the transaction, the senior vice president directly owned 66,425 shares of the company’s stock, valued at approximately $3,910,439.75. The trade was a 13.48% decrease in their position. 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. Insiders have sold a total of 19,678 shares of company stock valued at $1,160,946 over the last 90 days. 2.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Penguin Solutions

Several large investors have recently added to or reduced their stakes in the business. Global Retirement Partners LLC acquired a new stake in Penguin Solutions during the 2nd quarter worth approximately $26,000. Allworth Financial LP acquired a new position in shares of Penguin Solutions in the second quarter worth $37,000. Public Employees Retirement System of Ohio purchased a new stake in shares of Penguin Solutions during the second quarter worth $74,000. Meeder Asset Management Inc. acquired a new stake in shares of Penguin Solutions in the second quarter valued at $92,000. Finally, Farther Finance Advisors LLC raised its stake in shares of Penguin Solutions by 187.0% in the fourth quarter. Farther Finance Advisors LLC now owns 1,452 shares of the company’s stock valued at $28,000 after acquiring an additional 946 shares in the last quarter.

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.