Penguin Solutions (NASDAQ:PENG) Shares Gap Up – Still a Buy?

Penguin Solutions, Inc. (NASDAQ:PENG) shares gapped up before the market opened on Wednesday . The stock had previously closed at $47.50, but opened at $49.19. Penguin Solutions shares last traded at $48.9760, with a volume of 87,815 shares.

Analyst Ratings Changes

A number of research firms have issued reports on PENG. Needham & Company LLC increased their target price on shares of Penguin Solutions from $60.00 to $80.00 and gave the stock a “buy” rating in a report on Wednesday, July 8th. Citizens Jmp boosted their price target on shares of Penguin Solutions from $65.00 to $85.00 and gave the stock a “market outperform” rating in a research note on Wednesday, July 8th. Rosenblatt Securities upped their price objective on Penguin Solutions from $65.00 to $75.00 and gave the stock a “buy” rating in a research report on Monday, July 6th. Citigroup reiterated an “outperform” rating on shares of Penguin Solutions in a research note on Wednesday, July 8th. Finally, Stifel Nicolaus lifted their target price on Penguin Solutions from $66.00 to $75.00 and gave the company a “buy” rating in a report on Wednesday, July 8th. Six analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $63.33.

Penguin Solutions Price Performance

The stock’s 50-day moving average is $55.34 and its 200 day moving average is $46.08. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.10 and a current ratio of 1.54. The stock has a market capitalization of $2.69 billion, a PE ratio of 37.27 and a beta of 2.86.

Penguin Solutions (NASDAQ:PENG) last announced its quarterly earnings results on Tuesday, July 7th. The company reported $0.84 earnings per share for the quarter, beating analysts’ consensus estimates of $0.63 by $0.21. The firm had revenue of $478.71 million during the quarter, compared to analysts’ expectations of $407.47 million. Penguin Solutions had a net margin of 6.44% and a return on equity of 28.23%. During the same period in the previous year, the company earned $0.52 earnings per share. As a group, equities analysts expect that Penguin Solutions, Inc. will post 2.08 earnings per share for the current year.

Insider Transactions at Penguin Solutions

In other Penguin Solutions news, SVP Anne Kuykendall sold 4,000 shares of Penguin Solutions stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $50.58, for a total transaction of $202,320.00. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Clark sold 1,327 shares of the business’s stock in a transaction that occurred on Thursday, July 23rd. The shares were sold at an average price of $57.47, for a total value of $76,262.69. Following the completion of the sale, the senior vice president owned 63,056 shares of the company’s stock, valued at approximately $3,623,828.32. This represents a 2.06% 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. 2.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Penguin Solutions

Hedge funds have recently modified their holdings of the business. Global Retirement Partners LLC purchased a new stake in Penguin Solutions in the 2nd quarter valued at $26,000. Allworth Financial LP purchased a new position in Penguin Solutions during the 2nd quarter worth $37,000. Nykredit A S purchased a new position in Penguin Solutions during the 2nd quarter worth $42,000. Public Employees Retirement System of Ohio acquired a new position in Penguin Solutions in the second quarter valued at $74,000. Finally, Morgan Dempsey Capital Management LLC acquired a new position in Penguin Solutions in the fourth quarter valued at $78,000.

Penguin Solutions Company Profile

Penguin Solutions, Inc (NASDAQ: PENG) provides technology solutions for data centers, high-performance computing, artificial intelligence, and intelligent edge applications. The company helps organizations design, deploy, and manage specialized computing environments, including systems used for demanding workloads such as scientific research, machine learning, and enterprise applications.

Its offerings include accelerated computing platforms, high-performance servers and clusters, software and services for managing complex computing infrastructure, and memory and storage products.