Penguin Solutions (NASDAQ:PENG) Shares Gap Up – Should You Buy?

Penguin Solutions, Inc. (NASDAQ:PENG)’s share price gapped up before the market opened on Wednesday . The stock had previously closed at $77.80, but opened at $81.60. Penguin Solutions shares last traded at $78.8270, with a volume of 2,816,119 shares changing hands.

Analyst Ratings Changes

Several brokerages recently issued reports on PENG. Needham & Company LLC boosted their target price on shares of Penguin Solutions from $60.00 to $80.00 and gave the company a “buy” rating in a research report on Wednesday, July 8th. Stifel Nicolaus boosted their target price on shares of Penguin Solutions from $66.00 to $75.00 and gave the stock a “buy” rating in a report on Wednesday, July 8th. Barclays increased their price target on Penguin Solutions from $27.00 to $40.00 and gave the company an “equal weight” rating in a research note on Thursday, July 9th. Wall Street Zen raised Penguin Solutions from a “hold” rating to a “buy” rating in a research note on Sunday, May 17th. Finally, Rosenblatt Securities lifted their price target on shares of Penguin Solutions from $65.00 to $75.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Penguin Solutions has an average rating of “Moderate Buy” and an average price target of $63.33.

Penguin Solutions Trading Down 9.4%

The company has a market capitalization of $3.38 billion, a PE ratio of 46.79 and a beta of 2.83. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.54 and a quick ratio of 1.10. The company’s fifty day moving average is $61.63 and its 200-day moving average is $35.43.

Penguin Solutions (NASDAQ:PENG) last posted its earnings results on Tuesday, July 7th. The company reported $0.84 earnings per share for the quarter, topping analysts’ consensus estimates of $0.63 by $0.21. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.The company had revenue of $478.71 million during the quarter, compared to analyst estimates of $407.47 million. During the same quarter in the prior year, the business earned $0.52 earnings per share. On average, analysts anticipate that Penguin Solutions, Inc. will post 2.08 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Maximiliane C. Straub sold 3,000 shares of the firm’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $49.00, for a total value of $147,000.00. Following the sale, the director directly owned 51,975 shares in the company, valued at approximately $2,546,775. This trade represents a 5.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Anne Kuykendall sold 4,000 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $64.38, for a total transaction of $257,520.00. Following the completion of the sale, the senior vice president owned 120,794 shares in the company, valued at $7,776,717.72. This represents a 3.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 65,574 shares of company stock worth $3,069,722 in the last three months. 2.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. Tactive Advisors LLC acquired a new stake in Penguin Solutions in the second quarter valued at approximately $747,000. FNY Investment Advisers LLC purchased a new stake in shares of Penguin Solutions during the 2nd quarter valued at $714,000. Central Pacific Bank Trust Division lifted its holdings in shares of Penguin Solutions by 31.7% during the 2nd quarter. Central Pacific Bank Trust Division now owns 18,976 shares of the company’s stock valued at $1,442,000 after purchasing an additional 4,567 shares during the last quarter. Pacer Advisors Inc. boosted its position in shares of Penguin Solutions by 34.0% in the 1st quarter. Pacer Advisors Inc. now owns 261,776 shares of the company’s stock worth $4,607,000 after purchasing an additional 66,460 shares in the last quarter. Finally, 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.

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.