Penguin Solutions (NASDAQ:PENG) Stock Price Up 4.2% – Time to Buy?

Penguin Solutions, Inc. (NASDAQ:PENG) shares shot up 4.2% during trading on Friday. The company traded as high as $55.23 and last traded at $55.3110. 120,294 shares changed hands during trading, a decline of 95% from the average session volume of 2,298,956 shares. The stock had previously closed at $53.08.

Analysts Set New Price Targets

Several research firms have issued reports on PENG. Citizens Jmp increased their price objective on Penguin Solutions from $65.00 to $85.00 and gave the stock a “market outperform” rating in a research note on Wednesday, July 8th. Zacks Research downgraded shares of Penguin Solutions from a “strong-buy” rating to a “hold” rating in a report on Monday, September 7th. Barclays cut shares of Penguin Solutions from an “equal weight” rating to an “underweight” rating and set a $40.00 price objective on the stock. in a research note on Monday, July 20th. Citigroup reissued an “outperform” rating on shares of Penguin Solutions in a report on Wednesday, July 8th. Finally, Stifel Nicolaus raised their price target on Penguin Solutions from $66.00 to $75.00 and gave the company a “buy” rating in a report on Wednesday, July 8th. Six investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $63.33.

Penguin Solutions Stock Up 5.1%

The stock has a market cap of $2.86 billion, a price-to-earnings ratio of 39.54 and a beta of 2.86. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.10 and a current ratio of 1.54. The firm’s 50-day simple moving average is $53.33 and its two-hundred day simple moving average is $47.32.

Penguin Solutions (NASDAQ:PENG) last announced its earnings results on Tuesday, July 7th. The company reported $0.84 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.63 by $0.21. Penguin Solutions had a net margin of 6.44% and a return on equity of 28.23%. The company had revenue of $478.71 million for the quarter, compared to analyst estimates of $407.47 million. During the same period in the prior year, the business earned $0.52 earnings per share. On average, sell-side analysts expect that Penguin Solutions, Inc. will post 2.08 EPS for the current fiscal year.

Insider Buying and Selling at Penguin Solutions

In other Penguin Solutions news, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $50.58, for a total value of $202,320.00. Following the transaction, the senior vice president directly owned 112,994 shares in the company, valued at approximately $5,715,236.52. This trade represents a 3.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 1,327 shares of Penguin Solutions 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 of the company’s stock, valued at $3,623,828.32. This trade represents a 2.06% 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. 2.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Penguin Solutions

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Tidal Investments LLC boosted its stake in shares of Penguin Solutions by 224.6% in the 2nd quarter. Tidal Investments LLC now owns 165,954 shares of the company’s stock valued at $12,614,000 after purchasing an additional 114,821 shares during the last quarter. IPG Investment Advisors LLC bought a new stake in shares of Penguin Solutions during the second quarter worth approximately $221,000. Integrated Wealth Concepts LLC acquired a new position in Penguin Solutions in the second quarter valued at approximately $395,000. Nykredit A S bought a new position in Penguin Solutions in the second quarter valued at approximately $42,000. Finally, Corient Private Wealth LP acquired a new stake in Penguin Solutions during the 2nd quarter worth $341,000.

Penguin Solutions Company Profile

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.