Penguin Solutions (NASDAQ:PENG) Shares Gap Down – What’s Next?

Shares of Penguin Solutions, Inc. (NASDAQ:PENG) gapped down before the market opened on Thursday . The stock had previously closed at $71.41, but opened at $65.54. Penguin Solutions shares last traded at $66.1390, with a volume of 601,560 shares.

Wall Street Analyst Weigh In

Several research firms recently commented on PENG. Wall Street Zen raised Penguin Solutions from a “hold” rating to a “buy” rating in a research note on Sunday, May 17th. Zacks Research downgraded Penguin Solutions from a “strong-buy” rating to a “hold” rating in a research note on Monday. Barclays downgraded Penguin Solutions from an “overweight” rating to an “equal weight” rating and increased their price objective for the company from $23.00 to $27.00 in a research note on Wednesday, April 22nd. Stifel Nicolaus increased their price objective on Penguin Solutions from $24.00 to $66.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Needham & Company LLC increased their price objective on Penguin Solutions from $25.00 to $27.00 and gave the company a “buy” rating in a research note on Thursday, April 2nd. Six analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $36.88.

Penguin Solutions Price Performance

The company has a market capitalization of $3.50 billion, a PE ratio of 96.08 and a beta of 2.89. The company has a current ratio of 2.10, a quick ratio of 1.55 and a debt-to-equity ratio of 1.09. The stock has a fifty day simple moving average of $35.34 and a 200-day simple moving average of $25.09.

Penguin Solutions (NASDAQ:PENG) last released its quarterly earnings data on Wednesday, April 1st. The company reported $0.52 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. Equities analysts anticipate that Penguin Solutions, Inc. will post 1.66 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Sandeep Nayyar sold 12,893 shares of the stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $45.09, for a total value of $581,345.37. Following the transaction, the director owned 32,524 shares in the company, valued at approximately $1,466,507.16. This represents a 28.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Anne Kuykendall sold 4,000 shares of the firm’s stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $17.75, for a total value of $71,000.00. Following 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 position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 83,120 shares of company stock worth $3,300,214. Insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System grew its stake in Penguin Solutions by 52.8% during the 1st quarter. California State Teachers Retirement System now owns 74,580 shares of the company’s stock worth $1,313,000 after buying an additional 25,763 shares during the last quarter. Maverick Capital Ltd. purchased a new position in Penguin Solutions during the 1st quarter worth approximately $771,000. Quantinno Capital Management LP increased its position in Penguin Solutions by 16.6% in the 1st quarter. Quantinno Capital Management LP now owns 28,318 shares of the company’s stock valued at $498,000 after acquiring an additional 4,036 shares during the period. Paradigm Capital Management Inc. NY increased its position in Penguin Solutions by 73.8% in the 1st quarter. Paradigm Capital Management Inc. NY now owns 1,605,100 shares of the company’s stock valued at $28,250,000 after acquiring an additional 681,700 shares during the period. Finally, Inceptionr LLC acquired a new position in Penguin Solutions in the 1st quarter valued at about $339,000.

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.