Penguin Solutions (NASDAQ:PENG) Downgraded by Zacks Research to “Hold”

Penguin Solutions (NASDAQ:PENG) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Monday,Zacks.com reports.

A number of other equities analysts have also issued reports on PENG. Barclays lowered Penguin Solutions from an “overweight” rating to an “equal weight” rating and increased their price target for the company from $23.00 to $27.00 in a research note on Wednesday, April 22nd. Wall Street Zen raised Penguin Solutions from a “hold” rating to a “buy” rating in a research note on Sunday, May 17th. Needham & Company LLC increased their price target on Penguin Solutions from $25.00 to $27.00 and gave the company a “buy” rating in a research note on Thursday, April 2nd. Rosenblatt Securities increased their price target on Penguin Solutions from $54.00 to $65.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Weiss Ratings downgraded Penguin Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 13th. Six investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $36.88.

Penguin Solutions Stock Performance

Shares of NASDAQ PENG opened at $70.65 on Monday. The stock has a fifty day moving average price of $33.21 and a two-hundred day moving average price of $24.37. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.55 and a current ratio of 2.10. The firm has a market cap of $3.59 billion, a P/E ratio of 98.13 and a beta of 2.89. Penguin Solutions has a 1 year low of $16.04 and a 1 year high of $73.24.

Penguin Solutions (NASDAQ:PENG) last issued its quarterly earnings results on Wednesday, April 1st. The company reported $0.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.09. The firm had revenue of $343.00 million during the quarter, compared to analyst estimates of $339.00 million. Penguin Solutions had a return on equity of 19.94% and a net margin of 4.07%. Research analysts forecast that Penguin Solutions will post 1.66 EPS for the current fiscal year.

Insider Buying and Selling

In other news, SVP Joseph Gates Clark sold 10,351 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $58.87, for a total transaction of $609,363.37. Following the completion of the sale, the senior vice president owned 66,425 shares in the company, valued at approximately $3,910,439.75. This represents a 13.48% decrease in their position. The sale 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, Director Sandeep Nayyar sold 7,107 shares of the stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $43.48, for a total value of $309,012.36. Following the completion of the sale, the director owned 25,417 shares of the company’s stock, valued at $1,105,131.16. The trade was a 21.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 83,120 shares of company stock worth $3,300,214 over the last quarter. 2.90% of the stock is currently owned by insiders.

Institutional Trading of Penguin Solutions

Hedge funds have recently modified their holdings of the business. Farther Finance Advisors LLC lifted its holdings in shares of Penguin Solutions by 187.0% in the fourth quarter. Farther Finance Advisors LLC now owns 1,452 shares of the company’s stock valued at $28,000 after purchasing an additional 946 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Penguin Solutions in the fourth quarter valued at $29,000. Raymond James Financial Inc. purchased a new stake in shares of Penguin Solutions in the second quarter valued at $37,000. Strs Ohio purchased a new stake in shares of Penguin Solutions in the third quarter valued at $42,000. Finally, Jones Financial Companies Lllp lifted its holdings in shares of Penguin Solutions by 4,131.7% in the third quarter. Jones Financial Companies Lllp now owns 1,735 shares of the company’s stock valued at $45,000 after purchasing an additional 1,694 shares in the last quarter.

More Penguin Solutions News

Here are the key news stories impacting Penguin Solutions this week:

• Positive Sentiment: Penguin Solutions lifted FY2026 guidance, now expecting EPS of $2.30 and revenue of about $1.6 billion, both above consensus estimates. MarketWatch: Penguin Solutions Names Johnson Interim CFO; Boosts FY Outlook
• Positive Sentiment: The company said business trends remain strong enough that it expects to land at the high end of its prior outlook, which fueled fresh buying and helped push the stock to new highs. Seeking Alpha: Penguin soars as company expects to hit high end of guidance; announces CFO transition
• Positive Sentiment: Rosenblatt raised its price target on PENG from $54 to $65 and reiterated a Buy rating, adding to the bullish tone around the stock. Benzinga report on Rosenblatt price target raise
• Neutral Sentiment: The company named Aaron Johnson interim CFO after Nate Olmstead said he will step down in July; management said the move was not due to disagreements, which helped limit concerns about the transition. Business Wire: Penguin Solutions Announces CFO Transition
• Neutral Sentiment: One insider sale was disclosed by SVP Joseph Gates Clark, who sold shares under a pre-arranged 10b5-1 plan; while not necessarily a negative signal, insider selling can still get investor attention. SEC Form 4 filing
• Negative Sentiment: Some commentary suggests the stock has already had a very strong run, with valuation and recent gains making further upside less certain for some investors. Zacks: PENG Soars 215% in 3 Months

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.