Penguin Solutions (NASDAQ:PENG) Shares Gap Up – Time to Buy?

Penguin Solutions, Inc. (NASDAQ:PENG)’s share price gapped up before the market opened on Friday . The stock had previously closed at $54.07, but opened at $59.96. Penguin Solutions shares last traded at $58.66, with a volume of 911,220 shares changing hands.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Stifel Nicolaus reduced their target price on shares of Penguin Solutions from $27.00 to $24.00 and set a “buy” rating for the company in a research note on Thursday, April 2nd. Wall Street Zen upgraded Penguin Solutions from a “hold” rating to a “buy” rating in a research report on Sunday, May 17th. Needham & Company LLC boosted their price target on Penguin Solutions from $25.00 to $27.00 and gave the stock a “buy” rating in a research report on Thursday, April 2nd. Barclays lowered Penguin Solutions from an “overweight” rating to an “equal weight” rating and boosted their price target for the stock from $23.00 to $27.00 in a research report on Wednesday, April 22nd. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $30.00 price target on shares of Penguin Solutions in a research note on Monday, March 30th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $27.25.

Penguin Solutions Stock Performance

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 firm has a market cap of $2.96 billion, a price-to-earnings ratio of 81.07 and a beta of 2.66. The company has a fifty day moving average price of $31.60 and a two-hundred day moving average price of $23.86.

Penguin Solutions (NASDAQ:PENG) last announced its quarterly earnings data on Wednesday, April 1st. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.09. The business had revenue of $343.00 million during the quarter, compared to analyst estimates of $339.00 million. Penguin Solutions had a return on equity of 19.94% and a net margin of 4.07%. As a group, equities research analysts expect that Penguin Solutions, Inc. will post 1.66 EPS for the current year.

Insider Buying and Selling at Penguin Solutions

In related news, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $54.45, for a total transaction of $217,800.00. Following the completion of the sale, the senior vice president directly owned 124,794 shares of the company’s stock, valued at $6,795,033.30. This represents a 3.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sandeep Nayyar sold 7,107 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $43.48, for a total transaction of $309,012.36. Following the sale, the director directly owned 25,417 shares of the company’s stock, valued at approximately $1,105,131.16. This represents a 21.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 72,769 shares of company stock valued at $2,690,851 in the last ninety days. Company insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Penguin Solutions

Several hedge funds have recently modified their holdings of the stock. Farther Finance Advisors LLC lifted its position in shares of Penguin Solutions by 187.0% in the 4th quarter. Farther Finance Advisors LLC now owns 1,452 shares of the company’s stock valued at $28,000 after acquiring an additional 946 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in Penguin Solutions in the 4th quarter worth about $29,000. Raymond James Financial Inc. purchased a new stake in Penguin Solutions in the 2nd quarter worth about $37,000. Strs Ohio purchased a new stake in Penguin Solutions in the 3rd quarter worth about $42,000. Finally, Jones Financial Companies Lllp lifted its stake in Penguin Solutions by 4,131.7% in the 3rd quarter. Jones Financial Companies Lllp now owns 1,735 shares of the company’s stock worth $45,000 after acquiring an additional 1,694 shares in the last quarter.

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.