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

Penguin Solutions, Inc. (NASDAQ:PENG) 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 trading hands.

Analysts Set New Price Targets

Several brokerages have weighed in on PENG. Needham & Company LLC raised their price objective on shares of Penguin Solutions from $25.00 to $27.00 and gave the stock a “buy” rating in a report on Thursday, April 2nd. Wall Street Zen raised shares of Penguin Solutions from a “hold” rating to a “buy” rating in a report on Sunday, May 17th. Rosenblatt Securities reissued a “buy” rating and set a $30.00 price objective on shares of Penguin Solutions in a report on Monday, March 30th. Barclays lowered shares of Penguin Solutions from an “overweight” rating to an “equal weight” rating and raised their price objective for the stock from $23.00 to $27.00 in a report on Wednesday, April 22nd. Finally, Zacks Research raised shares of Penguin Solutions from a “hold” rating to a “strong-buy” rating in a report on Tuesday, April 7th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Penguin Solutions currently has a consensus rating of “Moderate Buy” and an average target price of $27.25.

Penguin Solutions Trading Up 8.0%

The company has a market cap of $2.96 billion, a price-to-earnings ratio of 81.07 and a beta of 2.66. The firm has a 50-day moving average price of $31.60 and a 200 day moving average price of $23.86. The company has a current ratio of 2.10, a quick ratio of 1.55 and a debt-to-equity ratio of 1.09.

Penguin Solutions (NASDAQ:PENG) last issued its 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 company had revenue of $343.00 million during the quarter, compared to analyst estimates of $339.00 million. As a group, sell-side analysts forecast that Penguin Solutions, Inc. will post 1.66 EPS for the current year.

Insider Buying and Selling at Penguin Solutions

In other news, Director Sandeep Nayyar sold 12,893 shares of Penguin Solutions stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $45.09, for a total value of $581,345.37. Following the completion of the transaction, the director directly owned 32,524 shares of the company’s stock, valued at approximately $1,466,507.16. The trade was a 28.39% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Maximiliane C. Straub sold 8,000 shares of Penguin Solutions stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $45.00, for a total transaction of $360,000.00. Following the completion of the transaction, the director directly owned 58,975 shares of the company’s stock, valued at $2,653,875. This trade represents a 11.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 72,769 shares of company stock valued at $2,690,851. Corporate insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PENG. Royal Bank of Canada acquired a new position in Penguin Solutions during the 1st quarter valued at approximately $7,250,000. Amundi acquired a new position in Penguin Solutions during the 1st quarter valued at approximately $373,000. AQR Capital Management LLC acquired a new position in Penguin Solutions during the 1st quarter valued at approximately $1,076,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in Penguin Solutions during the 1st quarter valued at approximately $538,000. Finally, Goldman Sachs Group Inc. acquired a new position in Penguin Solutions during the 1st quarter valued at approximately $3,259,000.

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.