Penguin Solutions (NASDAQ:PENG) Shares Down 7.7% – Time to Sell?

Penguin Solutions, Inc. (NASDAQ:PENG)’s stock price dropped 7.7% on Friday. The company traded as low as $56.90 and last traded at $57.10. 3,963,860 shares were traded during mid-day trading, an increase of 55% from the average daily volume of 2,563,010 shares. The stock had previously closed at $61.86.

Analyst Ratings Changes

A number of brokerages recently issued reports on PENG. The Goldman Sachs Group restated a “buy” rating and set a $85.00 price objective on shares of Penguin Solutions in a report on Wednesday, October 7th. Weiss Ratings reiterated a “hold (c)” rating on shares of Penguin Solutions in a report on Friday, October 2nd. Bank of America started coverage on shares of Penguin Solutions in a report on Friday, October 9th. They issued a “buy” rating and a $100.00 target price on the stock. Stifel Nicolaus lifted their price target on shares of Penguin Solutions from $75.00 to $85.00 and gave the stock a “buy” rating in a research report on Wednesday, October 7th. Finally, Deutsche Bank Aktiengesellschaft set a $100.00 price target on shares of Penguin Solutions in a report on Friday, October 9th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Penguin Solutions presently has an average rating of “Moderate Buy” and an average price target of $87.50.

Penguin Solutions Price Performance

The company has a market cap of $2.93 billion, a P/E ratio of 22.05, a PEG ratio of 0.80 and a beta of 2.86. The company has a fifty day moving average price of $56.46 and a two-hundred day moving average price of $52.27. The company has a debt-to-equity ratio of 1.37, a quick ratio of 1.25 and a current ratio of 1.88.

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

Insider Buying and Selling at Penguin Solutions

In other Penguin Solutions news, 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 transaction of $76,262.69. Following the sale, the senior vice president directly owned 63,056 shares of the company’s stock, valued at approximately $3,623,828.32. This represents a 2.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through 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 stock in a transaction on Monday, August 24th. The shares were sold at an average price of $50.58, for a total transaction 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 approximately $5,715,236.52. This represents a 3.42% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.90% of the stock is currently owned by company insiders.

Institutional Trading of Penguin Solutions

Institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in Penguin Solutions in the second quarter valued at approximately $581,658,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in shares of Penguin Solutions during the 2nd quarter worth approximately $150,192,000. Paradigm Capital Management Inc. NY bought a new position in shares of Penguin Solutions during the 2nd quarter worth approximately $52,135,000. William Blair Investment Management LLC bought a new position in shares of Penguin Solutions during the 2nd quarter worth approximately $34,207,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Penguin Solutions during the 2nd quarter worth approximately $22,503,000.

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.