Penguin Solutions (NASDAQ:PENG) Shares Gap Up – Here’s Why

Shares of Penguin Solutions, Inc. (NASDAQ:PENG) gapped up before the market opened on Wednesday . The stock had previously closed at $44.13, but opened at $51.11. Penguin Solutions shares last traded at $49.9740, with a volume of 1,874,622 shares.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on PENG. Wall Street Zen lowered Penguin Solutions from a “buy” rating to a “hold” rating in a research note on Saturday. Weiss Ratings raised Penguin Solutions from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, April 6th. The Goldman Sachs Group initiated coverage on Penguin Solutions in a research report on Tuesday, January 13th. They set a “buy” rating and a $25.00 target price for the company. Rosenblatt Securities reaffirmed a “buy” rating and set a $30.00 target price on shares of Penguin Solutions in a research report on Monday, March 30th. Finally, Zacks Research raised Penguin Solutions from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, April 7th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have assigned 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 $27.25.

Penguin Solutions Price Performance

The stock has a fifty day moving average price of $23.98 and a 200-day moving average price of $21.49. The firm has a market capitalization of $2.51 billion, a PE ratio of 68.82 and a beta of 2.66. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.55 and a current ratio of 2.10.

Penguin Solutions (NASDAQ:PENG) last announced its quarterly earnings results on Wednesday, April 1st. The company reported $0.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 the consensus estimate of $339.00 million. Sell-side analysts forecast that Penguin Solutions, Inc. will post 1.66 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, SVP Joseph Gates Clark sold 12,546 shares of Penguin Solutions stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $22.55, for a total value of $282,912.30. Following the transaction, the senior vice president directly owned 99,726 shares in the company, valued at approximately $2,248,821.30. This trade represents a 11.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed 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 Penguin Solutions stock in a transaction 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 completion of the transaction, the senior vice president owned 131,352 shares in the company, valued at $2,331,498. This represents a 2.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 33,769 shares of company stock worth $898,333 over the last quarter. Company insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in Penguin Solutions by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 6,592,564 shares of the company’s stock worth $173,253,000 after buying an additional 25,804 shares during the last quarter. State Street Corp grew its stake in Penguin Solutions by 3.2% during the 4th quarter. State Street Corp now owns 2,957,938 shares of the company’s stock worth $57,857,000 after buying an additional 91,805 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in Penguin Solutions by 4.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,388,748 shares of the company’s stock worth $46,726,000 after buying an additional 95,585 shares during the last quarter. Invesco Ltd. grew its stake in Penguin Solutions by 596.8% during the 4th quarter. Invesco Ltd. now owns 1,992,415 shares of the company’s stock worth $38,972,000 after buying an additional 1,706,482 shares during the last quarter. Finally, American Century Companies Inc. grew its stake in Penguin Solutions by 35.3% during the 3rd quarter. American Century Companies Inc. now owns 1,294,279 shares of the company’s stock worth $34,014,000 after buying an additional 337,564 shares during the last quarter.

Penguin Solutions Company Profile

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.