Insider Selling: Penguin Solutions (NASDAQ:PENG) SVP Sells $286,687.18 in Stock

Penguin Solutions, Inc. (NASDAQ:PENG) SVP Joseph Clark sold 5,773 shares of the company’s stock in a transaction dated Monday, November 2nd. The stock was sold at an average price of $49.66, for a total transaction of $286,687.18. Following the sale, the senior vice president directly owned 80,080 shares of the company’s stock, valued at $3,976,772.80. This represents a 6.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Joseph Gates Clark also recently made the following trade(s):

• On Friday, October 23rd, Joseph Clark sold 869 shares of Penguin Solutions stock. The stock was sold at an average price of $51.52, for a total transaction of $44,770.88.

Penguin Solutions Price Performance

PENG stock traded down $4.84 during mid-day trading on Wednesday, hitting $48.35. The stock had a trading volume of 3,346,254 shares, compared to its average volume of 2,596,217. The firm has a fifty day simple moving average of $56.15 and a 200 day simple moving average of $44.18. The firm has a market capitalization of $2.91 billion, a P/E ratio of 18.67, a P/E/G ratio of 0.56 and a beta of 2.87. 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, Inc. has a 52 week low of $16.04 and a 52 week high of $89.86.

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. The company had revenue of $566.68 million during the quarter, compared to the consensus estimate of $520.99 million. Penguin Solutions had a net margin of 10.43% and a return on equity of 36.71%. During the same quarter in the prior year, the firm posted $0.11 EPS. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. As a group, research analysts forecast that Penguin Solutions, Inc. will post 4.05 EPS for the current year.

Wall Street Analyst Weigh In

PENG has been the topic of a number of research analyst reports. Weiss Ratings raised Penguin Solutions from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, October 16th. Citigroup reissued an “outperform” rating on shares of Penguin Solutions in a report on Wednesday, July 8th. Stifel Nicolaus upped their price objective on Penguin Solutions from $75.00 to $85.00 and gave the stock a “buy” rating in a research report on Wednesday, October 7th. Citizens Jmp raised their price objective on Penguin Solutions from $65.00 to $85.00 and gave the company a “market outperform” rating in a research note on Wednesday, July 8th. Finally, Bank of America initiated coverage on Penguin Solutions in a research report on Friday, October 9th. They issued a “buy” rating and a $100.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Penguin Solutions currently has a consensus rating of “Moderate Buy” and an average price target of $87.50.

Institutional Trading of Penguin Solutions

Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in shares of Penguin Solutions during the second quarter valued at $581,658,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of Penguin Solutions during the second quarter worth $150,192,000. Paradigm Capital Management Inc. NY grew its stake in shares of Penguin Solutions by 73.8% in the first quarter. Paradigm Capital Management Inc. NY now owns 1,605,100 shares of the company’s stock worth $28,250,000 after purchasing an additional 681,700 shares during the last quarter. William Blair Investment Management LLC bought a new stake in shares of Penguin Solutions in the second quarter worth $34,207,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of Penguin Solutions in the second quarter worth $22,503,000.

Key Penguin Solutions News

Here are the key news stories impacting Penguin Solutions this week:

• Positive Sentiment: SK Hynix has taken a 9.1% activist stake in Penguin Solutions, adding a significant investor that may support strategic change or sharpen focus on the company’s direction. The article does not specify its plans. Article: SK Hynix Takes a 9.1% Activist Stake in Penguin Solutions
• Positive Sentiment: Penguin agreed to sell its Cree LED unit to Transom Capital, saying the move will let it focus on AI growth. The divestiture could simplify the business, though the sale’s financial terms were not included in the provided coverage. Article: Penguin Solutions Announces Agreement to Sell Cree LED to Transom Capital Group
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating and $100 price target, signaling substantial potential upside in the analyst’s view. Rosenblatt Securities stock recommendations
• Neutral Sentiment: Penguin plans to demonstrate updates to its full-stack AI Factory platform at SC26, including infrastructure software, accelerated computing systems and advanced memory technologies. The showcase reinforces its AI positioning, but the announcement does not indicate near-term revenue. Article: Penguin Solutions to Showcase Full-Stack AI Factory Platform Innovations at SC26
• Negative Sentiment: A separate analysis described the Cree LED unit as being sold at a low multiple and argued Penguin’s next report must demonstrate that its earnings are durable. That raises concerns about the sale’s value and the company’s ability to deliver on its growth expectations. Article: Penguin Solutions “Sells at a Low Multiple.” Its Next Report Has to Prove the Earnings Behind It

About Penguin Solutions

Penguin Solutions, Inc provides technology products and services for data center, cloud, artificial intelligence, high-performance computing, edge computing and embedded applications. The company designs and delivers memory products, computing platforms and integrated infrastructure intended to help organizations manage demanding workloads and deploy specialized technology environments.

Its offerings include memory modules and other memory-related products, high-performance computing systems, servers, storage and networking solutions, and software and services for infrastructure management.