Penguin Solutions (NASDAQ:PENG) Shares Gap Up – Still a Buy?

Shares of Penguin Solutions, Inc. (NASDAQ:PENG) gapped up prior to trading on Friday. The stock had previously closed at $37.22, but opened at $41.69. Penguin Solutions shares last traded at $42.7940, with a volume of 645,077 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on PENG. Stifel Nicolaus upped their price objective on shares of Penguin Solutions from $75.00 to $85.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th. Barclays lifted their target price on shares of Penguin Solutions from $40.00 to $60.00 and gave the stock an “underweight” rating in a report on Wednesday, October 7th. Zacks Research raised shares of Penguin Solutions from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 9th. The Goldman Sachs Group restated a “buy” rating and set a $85.00 price target on shares of Penguin Solutions in a report on Wednesday, October 7th. Finally, Bank of America assumed coverage on Penguin Solutions in a research report on Friday, October 9th. They issued a “buy” rating and a $100.00 price target on the stock. One investment 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’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $87.50.

Penguin Solutions Trading Up 15.3%

The company has a market capitalization of $2.59 billion, a price-to-earnings ratio of 16.54, a price-to-earnings-growth ratio of 0.57 and a beta of 2.87. The business has a fifty day moving average price of $55.82 and a 200 day moving average price of $44.40. The company has a debt-to-equity ratio of 1.37, a current ratio of 1.88 and a quick ratio of 1.25.

Penguin Solutions (NASDAQ:PENG) last posted its quarterly earnings data on Tuesday, October 6th. The company reported $1.00 earnings per share for the quarter, beating the consensus estimate of $0.77 by $0.23. The company had revenue of $566.68 million during the quarter, compared to analysts’ expectations of $520.99 million. Penguin Solutions had a return on equity of 36.71% and a net margin of 10.43%. During the same period in the prior year, the business earned $0.11 earnings per share. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. On average, equities analysts expect that Penguin Solutions, Inc. will post 4.05 EPS for the current fiscal year.

Insider Buying and Selling

In related news, SVP Joseph Clark sold 5,773 shares of the company’s stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $49.66, for a total transaction of $286,687.18. Following the completion of the transaction, the senior vice president directly owned 80,080 shares in the company, 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 link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction on Monday, August 24th. The shares were sold at an average price of $50.58, for a total transaction of $202,320.00. Following the completion of the sale, the senior vice president directly owned 112,994 shares of the company’s stock, valued at approximately $5,715,236.52. This trade represents a 3.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 16,011 shares of company stock valued at $847,239. 2.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Penguin Solutions

Several hedge funds have recently made changes to their positions in PENG. Fifth Third Bancorp grew its position in Penguin Solutions by 161.8% during the third quarter. Fifth Third Bancorp now owns 30,034 shares of the company’s stock worth $1,643,000 after buying an additional 18,563 shares in the last quarter. King Luther Capital Management Corp bought a new position in Penguin Solutions during the third quarter valued at about $405,000. Maryland State Retirement & Pension System raised its holdings in Penguin Solutions by 68.8% in the 3rd quarter. Maryland State Retirement & Pension System now owns 11,371 shares of the company’s stock valued at $622,000 after acquiring an additional 4,634 shares in the last quarter. Lido Advisors LLC raised its holdings in Penguin Solutions by 10.8% in the 3rd quarter. Lido Advisors LLC now owns 15,675 shares of the company’s stock valued at $857,000 after acquiring an additional 1,534 shares in the last quarter. Finally, Parallel Advisors LLC raised its holdings in Penguin Solutions by 596.9% in the 3rd quarter. Parallel Advisors LLC now owns 1,338 shares of the company’s stock valued at $73,000 after acquiring an additional 1,146 shares in the last quarter.

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.