Penguin Solutions (NASDAQ:PENG) Stock Falls 8.1% – What’s Next?

Penguin Solutions, Inc. (NASDAQ:PENG) shares fell 8.1% on Wednesday. The stock traded as low as $71.88 and last traded at $71.8550. Approximately 1,411,501 shares were traded during mid-day trading, a decline of 44% from the average daily volume of 2,510,118 shares. The stock had previously closed at $78.20.

Analyst Upgrades and Downgrades

PENG has been the topic of a number of analyst reports. The Goldman Sachs Group reissued a “buy” rating and set a $85.00 target price on shares of Penguin Solutions in a report on Wednesday, October 7th. Stifel Nicolaus increased their price target on shares of Penguin Solutions from $75.00 to $85.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th. Rosenblatt Securities upped their target price on shares of Penguin Solutions from $80.00 to $100.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th. Weiss Ratings restated a “hold (c)” rating on shares of Penguin Solutions in a research report on Friday, October 2nd. Finally, Wall Street Zen downgraded Penguin Solutions from a “strong-buy” rating to a “buy” rating in a research report on Sunday, July 26th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $87.50.

Penguin Solutions Trading Down 11.7%

The stock has a 50 day moving average of $56.11 and a 200 day moving average of $51.60. The company has a debt-to-equity ratio of 1.37, a current ratio of 1.88 and a quick ratio of 1.25. The firm has a market cap of $3.54 billion, a P/E ratio of 26.81, a PEG ratio of 0.94 and a beta of 2.86.

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

Insider Activity at Penguin Solutions

In related news, SVP Joseph Clark sold 1,327 shares of the stock in a transaction dated Thursday, July 23rd. The stock was sold at an average price of $57.47, for a total transaction of $76,262.69. Following the completion of the sale, the senior vice president directly owned 63,056 shares in the company, valued at $3,623,828.32. This represents a 2.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $50.58, for a total value of $202,320.00. Following the completion of the sale, the senior vice president owned 112,994 shares of the company’s stock, valued at $5,715,236.52. The trade was a 3.42% 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. Company insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in PENG. Global Retirement Partners LLC bought a new position in shares of Penguin Solutions in the 2nd quarter worth about $26,000. GAMMA Investing LLC raised its stake in Penguin Solutions by 9.1% during the third quarter. GAMMA Investing LLC now owns 5,527 shares of the company’s stock valued at $302,000 after buying an additional 462 shares during the last quarter. Allworth Financial LP purchased a new position in Penguin Solutions during the second quarter valued at $37,000. Nykredit A S purchased a new position in Penguin Solutions during the second quarter valued at $42,000. Finally, Polaris Financial Partners bought a new stake in Penguin Solutions in the third quarter worth $50,000.

About Penguin Solutions

Penguin Solutions, Inc provides intelligent infrastructure solutions for artificial intelligence, high-performance computing, enterprise data centers and other demanding technology environments. The company combines specialized hardware, software and professional services to help organizations design, deploy and manage complex computing infrastructure.

Its offerings include AI and high-performance computing systems, servers, storage and networking infrastructure, as well as software and services for infrastructure management, optimization and support.