Penguin Solutions (NASDAQ:PENG) Shares Gap Up – What’s Next?

Penguin Solutions, Inc. (NASDAQ:PENG) gapped up before the market opened on Monday. The stock had previously closed at $57.10, but opened at $60.50. Penguin Solutions shares last traded at $57.8480, with a volume of 536,256 shares traded.

Wall Street Analysts Forecast Growth

PENG has been the subject of several recent analyst reports. Barclays boosted their target price on Penguin Solutions from $40.00 to $60.00 and gave the stock an “underweight” rating in a research note on Wednesday, October 7th. The Goldman Sachs Group reiterated a “buy” rating and issued a $85.00 price target on shares of Penguin Solutions in a research note on Wednesday, October 7th. Wall Street Zen upgraded shares of Penguin Solutions from a “buy” rating to a “strong-buy” rating in a research note on Saturday. Citigroup reissued an “outperform” rating on shares of Penguin Solutions in a report on Wednesday, July 8th. Finally, Bank of America started coverage on shares of Penguin Solutions in a research report on Friday, October 9th. They set a “buy” rating and a $100.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $87.50.

Penguin Solutions Stock Up 3.1%

The business’s fifty day moving average price is $56.43 and its 200 day moving average price is $52.56. The firm has a market capitalization of $3.02 billion, a price-to-earnings ratio of 22.66, a PEG ratio of 0.67 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.

Penguin Solutions (NASDAQ:PENG) last issued its quarterly earnings results on Tuesday, October 6th. The company reported $1.00 earnings per share for the quarter, topping analysts’ consensus estimates of $0.77 by $0.23. Penguin Solutions had a net margin of 10.43% and a return on equity of 36.71%. The firm had revenue of $566.68 million during the quarter, compared to analysts’ expectations of $520.99 million. During the same quarter in the prior year, the business earned $0.11 EPS. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. On average, equities analysts expect that Penguin Solutions, Inc. will post 4.05 EPS for the current year.

Insider Buying and Selling at Penguin Solutions

In related news, SVP Anne Kuykendall sold 4,000 shares of the business’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $50.58, for a total transaction of $202,320.00. Following the sale, the senior vice president owned 112,994 shares of the company’s stock, valued at approximately $5,715,236.52. The trade was a 3.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 1,327 shares of the company’s 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 completion of the sale, the senior vice president directly owned 63,056 shares in the company, valued at $3,623,828.32. This trade represents 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 Investors Weigh In On Penguin Solutions

A number of large investors have recently added to or reduced their stakes in the business. Global Retirement Partners LLC acquired a new position in Penguin Solutions during the second quarter worth about $26,000. Allworth Financial LP acquired a new stake in shares of Penguin Solutions in the second quarter valued at approximately $37,000. Nykredit A S acquired a new stake in shares of Penguin Solutions in the second quarter valued at approximately $42,000. Polaris Financial Partners purchased a new position in shares of Penguin Solutions during the 3rd quarter worth approximately $50,000. Finally, Public Employees Retirement System of Ohio purchased a new position in shares of Penguin Solutions during the 2nd quarter worth approximately $74,000.

About Penguin Solutions

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.