Penguin Solutions (NASDAQ:PENG) Sees Large Volume Increase – Should You Buy?

Penguin Solutions, Inc. (NASDAQ:PENG) saw unusually-strong trading volume on Monday . 1,567,177 shares changed hands during trading, a decline of 36% from the previous session’s volume of 2,446,750 shares.The stock last traded at $54.54 and had previously closed at $60.41.

Wall Street Analyst Weigh In

PENG has been the subject of several analyst reports. Wall Street Zen upgraded Penguin Solutions from a “buy” rating to a “strong-buy” rating in a research report on Saturday. Barclays downgraded Penguin Solutions from an “equal weight” rating to an “underweight” rating and set a $40.00 target price on the stock. in a research report on Monday. Citigroup reaffirmed an “outperform” rating on shares of Penguin Solutions in a research note on Wednesday, July 8th. Stifel Nicolaus increased their price target on Penguin Solutions from $66.00 to $75.00 and gave the stock a “buy” rating in a report on Wednesday, July 8th. Finally, Zacks Research raised Penguin Solutions from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Penguin Solutions presently has an average rating of “Moderate Buy” and an average target price of $63.33.

Penguin Solutions Price Performance

The company has a current ratio of 1.54, a quick ratio of 1.10 and a debt-to-equity ratio of 0.65. The company’s fifty day moving average is $62.43 and its two-hundred day moving average is $36.22. The stock has a market cap of $2.98 billion, a price-to-earnings ratio of 41.21 and a beta of 2.83.

Penguin Solutions (NASDAQ:PENG) last announced its earnings results on Tuesday, July 7th. The company reported $0.84 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to analyst estimates of $407.47 million. During the same quarter in the previous year, the company earned $0.52 earnings per share. As a group, research analysts predict that Penguin Solutions, Inc. will post 2.08 earnings per share for the current year.

Insider Transactions at Penguin Solutions

In related news, SVP Joseph Gates Clark sold 10,351 shares of the stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $58.87, for a total transaction of $609,363.37. Following the transaction, the senior vice president owned 66,425 shares of the company’s stock, valued at approximately $3,910,439.75. This represents a 13.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 value of $257,520.00. Following the transaction, the senior vice president owned 120,794 shares of the company’s stock, valued at $7,776,717.72. This trade represents a 3.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 64,836 shares of company stock valued at $3,049,117. Corporate insiders own 2.90% of the company’s stock.

Institutional Trading of Penguin Solutions

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Dimensional Fund Advisors LP purchased a new position in shares of Penguin Solutions in the third quarter valued at approximately $60,264,000. Invesco Ltd. increased its stake in Penguin Solutions by 596.8% during the 4th quarter. Invesco Ltd. now owns 1,992,415 shares of the company’s stock worth $38,972,000 after buying an additional 1,706,482 shares during the period. William Blair Investment Management LLC acquired a new stake in Penguin Solutions during the 4th quarter worth approximately $18,290,000. Ophir Asset Management Pty Ltd boosted its position in Penguin Solutions by 234.3% in the 4th quarter. Ophir Asset Management Pty Ltd now owns 1,211,612 shares of the company’s stock valued at $23,699,000 after buying an additional 849,178 shares during the period. Finally, Paradigm Capital Management Inc. NY boosted 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 buying an additional 681,700 shares during the period.

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.