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

Shares of Penguin Solutions, Inc. (NASDAQ:PENG) gapped down prior to trading on Thursday . The stock had previously closed at $71.41, but opened at $65.54. Penguin Solutions shares last traded at $66.1390, with a volume of 601,560 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on PENG. Needham & Company LLC lifted their target price on Penguin Solutions from $25.00 to $27.00 and gave the company a “buy” rating in a research note on Thursday, April 2nd. Barclays downgraded Penguin Solutions from an “overweight” rating to an “equal weight” rating and lifted their price target for the company from $23.00 to $27.00 in a research note on Wednesday, April 22nd. Stifel Nicolaus lifted their price target on Penguin Solutions from $24.00 to $66.00 and gave the company a “buy” rating in a research note on Tuesday. Zacks Research cut Penguin Solutions from a “strong-buy” rating to a “hold” rating in a report on Monday. Finally, Weiss Ratings cut Penguin Solutions from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, May 13th. Six analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $36.88.

Penguin Solutions Price Performance

The company has a 50-day moving average price of $35.34 and a two-hundred day moving average price of $25.09. The company has a debt-to-equity ratio of 1.09, a current ratio of 2.10 and a quick ratio of 1.55. The company has a market cap of $3.50 billion, a PE ratio of 96.08 and a beta of 2.89.

Penguin Solutions (NASDAQ:PENG) last released its quarterly earnings results on Wednesday, April 1st. The company reported $0.52 EPS for the quarter, topping the consensus estimate of $0.43 by $0.09. Penguin Solutions had a return on equity of 19.94% and a net margin of 4.07%.The business had revenue of $343.00 million for the quarter, compared to analysts’ expectations of $339.00 million. Sell-side analysts expect that Penguin Solutions, Inc. will post 1.66 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Penguin Solutions news, SVP Joseph Gates Clark sold 12,546 shares of the company’s stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $22.55, for a total transaction of $282,912.30. Following the sale, the senior vice president owned 99,726 shares in the company, valued at $2,248,821.30. This represents a 11.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 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, March 16th. The shares were sold at an average price of $17.75, for a total value of $71,000.00. Following the sale, the senior vice president owned 131,352 shares in the company, valued at $2,331,498. The trade was a 2.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 83,120 shares of company stock worth $3,300,214. 2.90% of the stock is owned by insiders.

Institutional Trading of Penguin Solutions

Several institutional investors and hedge funds have recently bought and sold shares of PENG. Royal Bank of Canada acquired a new stake in Penguin Solutions during the first quarter valued at approximately $7,250,000. Amundi acquired a new stake in Penguin Solutions during the first quarter valued at approximately $373,000. AQR Capital Management LLC acquired a new stake in Penguin Solutions during the first quarter valued at approximately $1,076,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of Penguin Solutions during the first quarter valued at approximately $538,000. Finally, Goldman Sachs Group Inc. bought a new position in shares of Penguin Solutions during the first quarter valued at approximately $3,259,000.

About Penguin Solutions

Penguin Solutions, Inc engages in the designing and development of enterprise solutions worldwide. It operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers dynamic random access memory modules, solid-state and flash storage, and other advanced integrated memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services.