Penguin Solutions (NASDAQ:PENG) Stock Falls 12.1% – Here’s Why

Penguin Solutions, Inc. (NASDAQ:PENG) shares dropped 12.1% on Friday. The company traded as low as $52.05 and last traded at $51.6480. 850,755 shares changed hands during trading, a decline of 67% from the average session volume of 2,583,493 shares. The stock had previously closed at $58.79.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on PENG shares. Citizens Jmp upped their price target on shares of Penguin Solutions from $65.00 to $85.00 and gave the company a “market outperform” rating in a research report on Wednesday, July 8th. Needham & Company LLC lifted their price target on shares of Penguin Solutions from $80.00 to $85.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th. Zacks Research upgraded shares of Penguin Solutions from a “hold” rating to a “strong-buy” rating in a report on Friday, October 9th. Citigroup reissued an “outperform” rating on shares of Penguin Solutions in a research note on Wednesday, July 8th. Finally, Deutsche Bank Aktiengesellschaft set a $100.00 price objective on Penguin Solutions in a report on Friday, October 9th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $87.50.

Penguin Solutions Trading Down 14.2%

The company has a market cap of $3.04 billion, a price-to-earnings ratio of 19.52, a P/E/G ratio of 0.72 and a beta of 2.86. The company has a current ratio of 1.88, a quick ratio of 1.25 and a debt-to-equity ratio of 1.37. The firm’s 50-day moving average price is $56.19 and its 200 day moving average price is $43.71.

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

Insider Buying and Selling at Penguin Solutions

In other news, SVP Joseph Clark sold 869 shares of the company’s stock in a transaction dated Friday, October 23rd. The shares were sold at an average price of $51.52, for a total transaction of $44,770.88. Following the transaction, the senior vice president owned 85,853 shares in the company, valued at approximately $4,423,146.56. This represents a 1.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 738 shares of the stock in a transaction dated Thursday, October 22nd. The stock was sold at an average price of $55.08, for a total transaction of $40,649.04. Following the transaction, the senior vice president directly owned 141,988 shares in the company, valued at $7,820,699.04. This trade represents a 0.52% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 5,607 shares of company stock valued at $287,740. Insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Global Retirement Partners LLC bought a new position in Penguin Solutions in the second quarter worth approximately $26,000. Allworth Financial LP bought a new stake in shares of Penguin Solutions during the second quarter valued at approximately $37,000. Nykredit A S bought a new stake in shares of Penguin Solutions during the second quarter valued at approximately $42,000. Polaris Financial Partners bought a new stake in shares of Penguin Solutions during the third quarter valued at approximately $50,000. Finally, Signaturefd LLC raised its position in shares of Penguin Solutions by 25.3% during the third quarter. Signaturefd LLC now owns 1,081 shares of the company’s stock worth $59,000 after purchasing an additional 218 shares during the period.

Penguin Solutions Company Profile

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.