Penguin Solutions (NASDAQ:PENG) Shares Gap Up – Here’s Why

Penguin Solutions, Inc. (NASDAQ:PENG) shares gapped up before the market opened on Wednesday . The stock had previously closed at $44.13, but opened at $51.11. Penguin Solutions shares last traded at $49.9740, with a volume of 1,874,622 shares changing hands.

Analysts Set New Price Targets

PENG has been the subject of a number of research analyst reports. Barclays lowered Penguin Solutions from an “overweight” rating to an “equal weight” rating and raised their target price for the stock from $23.00 to $27.00 in a research note on Wednesday, April 22nd. Wall Street Zen lowered Penguin Solutions from a “buy” rating to a “hold” rating in a report on Saturday. Stifel Nicolaus cut their price objective on Penguin Solutions from $27.00 to $24.00 and set a “buy” rating on the stock in a report on Thursday, April 2nd. The Goldman Sachs Group started coverage on Penguin Solutions in a report on Tuesday, January 13th. They issued a “buy” rating and a $25.00 price objective on the stock. Finally, Zacks Research raised Penguin Solutions from a “hold” rating to a “strong-buy” rating in a report on Tuesday, April 7th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Penguin Solutions currently has an average rating of “Moderate Buy” and an average target price of $27.25.

Penguin Solutions Stock Up 11.9%

The stock has a market cap of $2.51 billion, a PE ratio of 68.82 and a beta of 2.66. The business has a 50 day moving average price of $23.98 and a 200 day moving average price of $21.49. The company has a quick ratio of 1.55, a current ratio of 2.10 and a debt-to-equity ratio of 1.09.

Penguin Solutions (NASDAQ:PENG) last released its quarterly earnings data on Wednesday, April 1st. The company reported $0.52 EPS for the quarter, topping the consensus estimate of $0.43 by $0.09. Penguin Solutions had a return on equity of 19.94% and a net margin of 4.07%.The business had revenue of $343.00 million for the quarter, compared to analyst estimates of $339.00 million. Equities research analysts expect that Penguin Solutions, Inc. will post 1.66 EPS for the current fiscal year.

Insider Activity at Penguin Solutions

In other Penguin Solutions news, SVP Anne Kuykendall sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $17.75, for a total value of $71,000.00. Following the sale, the senior vice president owned 131,352 shares in the company, valued at approximately $2,331,498. This represents a 2.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Joseph Gates Clark sold 5,000 shares of the company’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $39.99, for a total value of $199,950.00. Following the completion of the sale, the senior vice president owned 76,776 shares in the company, valued at approximately $3,070,272.24. This represents a 6.11% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 33,769 shares of company stock worth $898,333. Insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Penguin Solutions

Several hedge funds have recently bought and sold shares of the stock. Allspring Global Investments Holdings LLC boosted its position in Penguin Solutions by 11.6% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 33,940 shares of the company’s stock worth $619,000 after purchasing an additional 3,518 shares in the last quarter. Illinois Municipal Retirement Fund boosted its position in Penguin Solutions by 18.0% during the first quarter. Illinois Municipal Retirement Fund now owns 27,441 shares of the company’s stock worth $483,000 after purchasing an additional 4,183 shares in the last quarter. Principal Financial Group Inc. boosted its position in Penguin Solutions by 1.4% during the first quarter. Principal Financial Group Inc. now owns 232,673 shares of the company’s stock worth $4,095,000 after purchasing an additional 3,242 shares in the last quarter. Fifth Third Bancorp boosted its position in Penguin Solutions by 25,349.1% during the first quarter. Fifth Third Bancorp now owns 55,479 shares of the company’s stock worth $976,000 after purchasing an additional 55,261 shares in the last quarter. Finally, Inspire Investing LLC boosted its position in Penguin Solutions by 26.3% during the first quarter. Inspire Investing LLC now owns 34,997 shares of the company’s stock worth $616,000 after purchasing an additional 7,297 shares in the last quarter.

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.