Penguin Solutions (NASDAQ:PENG) Rating Lowered to “Hold” at Zacks Research

Penguin Solutions (NASDAQ:PENG) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Monday, Zacks reports.

Other equities research analysts have also recently issued reports about the company. Citigroup reaffirmed an “outperform” rating on shares of Penguin Solutions in a report on Wednesday, July 8th. Rosenblatt Securities increased their price target on Penguin Solutions from $65.00 to $75.00 and gave the company a “buy” rating in a research note on Monday, July 6th. Citizens Jmp increased their price target 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. Wall Street Zen cut Penguin Solutions from a “strong-buy” rating to a “buy” rating in a report on Sunday, July 26th. Finally, Weiss Ratings raised Penguin Solutions from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 8th. Six analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Penguin Solutions currently has an average rating of “Moderate Buy” and an average price target of $63.33.

Penguin Solutions Stock Performance

PENG opened at $51.30 on Monday. 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 stock has a market capitalization of $2.63 billion, a price-to-earnings ratio of 36.38 and a beta of 2.86. The company has a fifty day moving average of $58.07 and a 200 day moving average of $44.63. Penguin Solutions has a fifty-two week low of $16.04 and a fifty-two week high of $89.86.

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

Insider Activity

In related news, SVP Anne Kuykendall sold 4,000 shares of Penguin Solutions stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $50.58, for a total value of $202,320.00. Following the completion of the transaction, the senior vice president owned 112,994 shares in the company, valued at approximately $5,715,236.52. This trade represents a 3.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, 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 dated Thursday, July 23rd. The stock was sold at an average price of $57.47, for a total value of $76,262.69. Following the completion of the transaction, the senior vice president owned 63,056 shares of the company’s stock, valued at approximately $3,623,828.32. This 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 have sold a total of 9,327 shares of company stock worth $536,103 over the last 90 days. Corporate insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Penguin Solutions

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PENG. Global Retirement Partners LLC bought a new stake in shares of Penguin Solutions in the 2nd quarter valued at approximately $26,000. Kestra Advisory Services LLC bought a new position in shares of Penguin Solutions during the 4th quarter valued at approximately $29,000. Allworth Financial LP bought a new position in shares of Penguin Solutions during the 2nd quarter valued at approximately $37,000. Raymond James Financial Inc. bought a new position in shares of Penguin Solutions during the 2nd quarter valued at approximately $37,000. Finally, Nykredit A S purchased a new stake in Penguin Solutions during the 2nd quarter valued at $42,000.

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.