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

Penguin Solutions, Inc. (NASDAQ:PENG) gapped down prior to trading on Monday . The stock had previously closed at $51.16, but opened at $47.21. Penguin Solutions shares last traded at $48.2230, with a volume of 191,129 shares.

Wall Street Analyst Weigh In

Several brokerages have commented on PENG. Wall Street Zen lowered Penguin Solutions from a “strong-buy” rating to a “buy” rating in a report on Sunday, July 26th. Needham & Company LLC increased their target price on Penguin Solutions from $60.00 to $80.00 and gave the company a “buy” rating in a research report on Wednesday, July 8th. Weiss Ratings raised shares of Penguin Solutions from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 8th. Citigroup reissued an “outperform” rating on shares of Penguin Solutions in a report on Wednesday, July 8th. Finally, Stifel Nicolaus upped their price objective on shares of Penguin Solutions from $66.00 to $75.00 and gave the stock a “buy” rating in a research report on Wednesday, July 8th. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Penguin Solutions currently has a consensus rating of “Moderate Buy” and an average price target of $63.33.

Penguin Solutions Price Performance

The company has a debt-to-equity ratio of 0.65, a current ratio of 1.54 and a quick ratio of 1.10. The stock has a market capitalization of $2.43 billion, a price-to-earnings ratio of 33.69 and a beta of 2.86. The stock has a 50 day moving average price of $56.52 and a 200-day moving average price of $45.66.

Penguin Solutions (NASDAQ:PENG) last announced 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. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.The company had revenue of $478.71 million for the quarter, compared to analyst estimates of $407.47 million. During the same quarter last year, the firm posted $0.52 EPS. On average, analysts forecast that Penguin Solutions, Inc. will post 2.08 earnings per share for the current year.

Insider Transactions at Penguin Solutions

In other news, SVP Joseph Clark sold 1,327 shares of the business’s stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $57.47, for a total transaction of $76,262.69. Following the transaction, the senior vice president directly owned 63,056 shares in the company, valued at $3,623,828.32. The trade was a 2.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $50.58, for a total value 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 $5,715,236.52. This trade represents a 3.42% decrease in their ownership of the stock. 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 institutional investors and hedge funds have recently modified their holdings of the company. Global Retirement Partners LLC acquired a new stake in Penguin Solutions during the second quarter worth $26,000. Allworth Financial LP acquired a new stake in shares of Penguin Solutions during the 2nd quarter worth about $37,000. Nykredit A S purchased a new stake in Penguin Solutions in the 2nd quarter valued at about $42,000. Public Employees Retirement System of Ohio acquired a new position in Penguin Solutions in the second quarter valued at about $74,000. Finally, Meeder Asset Management Inc. purchased a new position in Penguin Solutions during the second quarter worth about $92,000.

About Penguin Solutions

Penguin Solutions, Inc (NASDAQ: PENG) provides technology solutions for data centers, high-performance computing, artificial intelligence, and intelligent edge applications. The company helps organizations design, deploy, and manage specialized computing environments, including systems used for demanding workloads such as scientific research, machine learning, and enterprise applications.

Its offerings include accelerated computing platforms, high-performance servers and clusters, software and services for managing complex computing infrastructure, and memory and storage products.