Penguin Solutions (NASDAQ:PENG) Shares Climb 13.4% – Here’s What Happened

Shares of Penguin Solutions, Inc. (NASDAQ:PENG) were up 13.4% on Wednesday. The company traded as high as $50.73 and last traded at $50.60. Approximately 1,203,386 shares were traded during trading, a decline of 54% from the average session volume of 2,605,651 shares. The stock had previously closed at $44.64.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on PENG shares. Zacks Research raised Penguin Solutions from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 9th. Weiss Ratings upgraded Penguin Solutions from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, October 16th. Bank of America initiated coverage on Penguin Solutions in a research note on Friday, October 9th. They issued a “buy” rating and a $100.00 price target on the stock. Barclays increased their price objective on Penguin Solutions from $40.00 to $60.00 and gave the stock an “underweight” rating in a report on Wednesday, October 7th. Finally, Wall Street Zen lowered Penguin Solutions from a “strong-buy” rating to a “buy” rating in a research report on Sunday, October 25th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $87.50.

Penguin Solutions Trading Up 11.0%

The firm has a market cap of $2.98 billion, a PE ratio of 19.17, a PEG ratio of 0.54 and a beta of 2.87. The company has a quick ratio of 1.25, a current ratio of 1.88 and a debt-to-equity ratio of 1.37. The stock’s fifty day simple moving average is $55.44 and its two-hundred day simple moving average is $44.76.

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 the consensus estimate of $0.77 by $0.23. Penguin Solutions had a net margin of 10.43% and a return on equity of 36.71%. The firm had revenue of $566.68 million during the quarter, compared to analyst estimates of $520.99 million. During the same period last year, the business earned $0.11 earnings per share. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. On average, sell-side analysts forecast that Penguin Solutions, Inc. will post 4.05 EPS for the current fiscal year.

Insider Activity at Penguin Solutions

In other Penguin Solutions news, SVP Joseph Clark sold 5,773 shares of Penguin Solutions stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $49.66, for a total transaction of $286,687.18. Following the completion of the transaction, the senior vice president owned 80,080 shares in the company, valued at approximately $3,976,772.80. The trade was a 6.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anthony George Frey sold 4,631 shares of the business’s stock in a transaction on Thursday, October 29th. The stock was sold at an average price of $58.91, for a total value of $272,812.21. Following the completion of the sale, the senior vice president directly owned 77,853 shares in the company, valued at $4,586,320.23. This trade represents a 5.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 16,011 shares of company stock valued at $847,239 in the last 90 days. Corporate insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Penguin Solutions

Hedge funds have recently bought and sold shares of the company. Global Retirement Partners LLC purchased a new stake in Penguin Solutions during the 2nd quarter valued at about $26,000. Allworth Financial LP purchased a new position in Penguin Solutions in the second quarter worth about $37,000. Nykredit A S bought a new position in shares of Penguin Solutions in the second quarter worth approximately $42,000. Polaris Financial Partners bought a new position in shares of Penguin Solutions in the third quarter worth approximately $50,000. Finally, Public Employees Retirement System of Ohio purchased a new stake in shares of Penguin Solutions during the second quarter valued at approximately $74,000.

Penguin Solutions Company Profile

Penguin Solutions, formerly known as SMART Global Holdings, provides computing and memory technologies for businesses and public-sector organizations. Its offerings include systems for artificial intelligence, high-performance computing and edge computing, as well as memory modules and storage products. The company’s portfolio includes Penguin Computing solutions for advanced computing and AI workloads, Stratus platforms designed for continuous availability, and SMART Modular memory and storage products.