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

Zacks Research lowered shares of Penguin Solutions (NASDAQ:PENG) from a strong-buy rating to a hold rating in a research report report published on Monday,Zacks.com reports.

Several other analysts also recently commented on PENG. Wall Street Zen upgraded Penguin Solutions from a “hold” rating to a “buy” rating in a research note on Sunday, May 17th. Barclays downgraded Penguin Solutions from an “overweight” rating to an “equal weight” rating and raised their target price for the company from $23.00 to $27.00 in a research note on Wednesday, April 22nd. Stifel Nicolaus raised their target price on Penguin Solutions from $24.00 to $66.00 and gave the company a “buy” rating in a research note on Tuesday. Needham & Company LLC raised their target price on Penguin Solutions from $25.00 to $27.00 and gave the company a “buy” rating in a research note on Thursday, April 2nd. Finally, Rosenblatt Securities raised their price target on shares of Penguin Solutions from $54.00 to $65.00 and gave the company a “buy” rating in a research report on Tuesday. Six analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Penguin Solutions has an average rating of “Moderate Buy” and a consensus target price of $36.88.

Penguin Solutions Stock Performance

Shares of PENG opened at $70.65 on Monday. The company has a debt-to-equity ratio of 1.09, a current ratio of 2.10 and a quick ratio of 1.55. The stock has a 50-day moving average of $33.21 and a 200-day moving average of $24.37. The company has a market cap of $3.59 billion, a PE ratio of 98.13 and a beta of 2.89. Penguin Solutions has a one year low of $16.04 and a one year high of $73.24.

Penguin Solutions (NASDAQ:PENG) last issued its earnings results on Wednesday, April 1st. The company reported $0.52 EPS for the quarter, beating the consensus estimate of $0.43 by $0.09. The company had revenue of $343.00 million during the quarter, compared to the consensus estimate of $339.00 million. Penguin Solutions had a return on equity of 19.94% and a net margin of 4.07%. On average, equities research analysts predict that Penguin Solutions will post 1.66 EPS for the current fiscal year.

Insider Buying and Selling at Penguin Solutions

In related news, SVP Joseph Gates Clark sold 12,546 shares of the firm’s stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $22.55, for a total value of $282,912.30. Following the transaction, the senior vice president owned 99,726 shares of the company’s stock, valued at approximately $2,248,821.30. This trade represents a 11.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sandeep Nayyar sold 12,893 shares of the firm’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $45.09, for a total transaction of $581,345.37. Following the completion of the transaction, the director directly owned 32,524 shares in the company, valued at approximately $1,466,507.16. The trade was a 28.39% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 83,120 shares of company stock worth $3,300,214 in the last quarter. 2.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Penguin Solutions

Hedge funds have recently modified their holdings of the company. Farther Finance Advisors LLC lifted its position in shares of Penguin Solutions by 187.0% during the 4th quarter. Farther Finance Advisors LLC now owns 1,452 shares of the company’s stock worth $28,000 after buying an additional 946 shares in the last quarter. Kestra Advisory Services LLC bought a new position in shares of Penguin Solutions during the 4th quarter worth approximately $29,000. Strs Ohio bought a new position in shares of Penguin Solutions during the 3rd quarter worth approximately $42,000. Jones Financial Companies Lllp lifted its position in shares of Penguin Solutions by 4,131.7% during the 3rd quarter. Jones Financial Companies Lllp now owns 1,735 shares of the company’s stock worth $45,000 after buying an additional 1,694 shares in the last quarter. Finally, Allworth Financial LP lifted its position in shares of Penguin Solutions by 41.4% during the 3rd quarter. Allworth Financial LP now owns 1,792 shares of the company’s stock worth $47,000 after buying an additional 525 shares in the last quarter.

Penguin Solutions News Roundup

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

About Penguin Solutions

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.