Penguin Solutions (NASDAQ:PENG) Shares Down 12.1% After Insider Selling

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

Specifically, SVP Anthony George Frey sold 4,631 shares of Penguin Solutions stock in a transaction that occurred on Thursday, October 29th. The stock was sold at an average price of $58.91, for a total transaction of $272,812.21. Following the sale, the senior vice president directly owned 77,853 shares of the company’s stock, valued at approximately $4,586,320.23. The trade was a 5.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 869 shares of the company’s stock in a transaction that occurred on Friday, October 23rd. The shares were sold at an average price of $51.52, for a total value of $44,770.88. Following the completion of the sale, 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. 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.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on PENG shares. Deutsche Bank Aktiengesellschaft set a $100.00 target price on Penguin Solutions in a report on Friday, October 9th. Weiss Ratings raised Penguin Solutions from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, October 16th. Wall Street Zen cut Penguin Solutions from a “strong-buy” rating to a “buy” rating in a research report on Sunday, October 25th. Rosenblatt Securities upped their price target on Penguin Solutions from $80.00 to $100.00 and gave the company a “buy” rating in a research report on Wednesday, October 7th. Finally, Citizens Jmp increased their price objective on Penguin Solutions from $65.00 to $85.00 and gave the stock a “market outperform” rating in a research note on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $87.50.

Penguin Solutions Price Performance

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 stock has a market capitalization of $3.13 billion, a P/E ratio of 20.05, a PEG ratio of 0.61 and a beta of 2.86. The company’s 50 day simple moving average is $56.20 and its two-hundred day simple moving average is $43.87.

Penguin Solutions (NASDAQ:PENG) last posted its quarterly earnings data on Tuesday, October 6th. The company reported $1.00 earnings per share for the quarter, topping 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 company had revenue of $566.68 million during the quarter, compared to analyst estimates of $520.99 million. During the same quarter last year, the business posted $0.11 earnings per share. 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 fiscal year.

Institutional Investors Weigh In On Penguin Solutions

A number of large investors have recently bought and sold shares of PENG. Oregon Public Employees Retirement Fund grew its holdings in shares of Penguin Solutions by 10.6% during the third quarter. Oregon Public Employees Retirement Fund now owns 11,525 shares of the company’s stock worth $630,000 after purchasing an additional 1,100 shares during the last quarter. IPG Investment Advisors LLC increased its stake in shares of Penguin Solutions by 118.1% in the third quarter. IPG Investment Advisors LLC now owns 6,352 shares of the company’s stock valued at $347,000 after buying an additional 3,439 shares in the last quarter. Vise Technologies Inc. increased its stake in shares of Penguin Solutions by 71.8% in the third quarter. Vise Technologies Inc. now owns 8,480 shares of the company’s stock valued at $464,000 after buying an additional 3,545 shares in the last quarter. Americana Partners LLC raised its holdings in shares of Penguin Solutions by 64.3% in the third quarter. Americana Partners LLC now owns 24,142 shares of the company’s stock valued at $1,320,000 after buying an additional 9,450 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al raised its holdings in shares of Penguin Solutions by 47.3% in the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 13,700 shares of the company’s stock valued at $749,000 after buying an additional 4,400 shares during the last quarter.

About Penguin Solutions

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.