Penumbra (NYSE:PEN) Shares Gap Up on Better-Than-Expected Earnings

Penumbra, Inc. (NYSE:PEN) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $225.54, but opened at $259.79. Penumbra shares last traded at $263.1830, with a volume of 208,971 shares changing hands.

The company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.90 by $0.07. The business had revenue of $354.69 million for the quarter, compared to analysts’ expectations of $340.77 million. Penumbra had a net margin of 11.54% and a return on equity of 11.55%. The firm’s revenue for the quarter was up 17.8% compared to the same quarter last year. During the same period in the previous year, the company earned $0.85 earnings per share. Penumbra has set its FY 2025 guidance at EPS.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. Morgan Stanley upped their price target on shares of Penumbra from $260.00 to $266.00 and gave the company an “equal weight” rating in a research note on Thursday, July 31st. Wells Fargo & Company set a $290.00 price target on shares of Penumbra in a research note on Wednesday, October 1st. UBS Group set a $335.00 price target on shares of Penumbra and gave the company a “buy” rating in a research note on Wednesday, July 30th. Evercore ISI decreased their target price on shares of Penumbra from $300.00 to $285.00 and set an “outperform” rating on the stock in a report on Tuesday, October 7th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $326.00 target price on shares of Penumbra in a report on Monday, October 27th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $305.94.

Insider Buying and Selling

In related news, Director Arani Bose sold 12,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $250.65, for a total value of $3,007,800.00. Following the transaction, the director owned 558 shares of the company’s stock, valued at approximately $139,862.70. This trade represents a 95.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Maggie Yuen sold 2,000 shares of Penumbra stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $250.00, for a total transaction of $500,000.00. Following the transaction, the chief financial officer directly owned 12,943 shares in the company, valued at $3,235,750. This represents a 13.38% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 48,430 shares of company stock valued at $12,504,268 in the last 90 days. 4.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Penumbra

Several hedge funds and other institutional investors have recently modified their holdings of PEN. Invesco Ltd. increased its holdings in Penumbra by 1,139.3% in the 2nd quarter. Invesco Ltd. now owns 633,485 shares of the company’s stock worth $162,571,000 after buying an additional 582,369 shares during the period. JPMorgan Chase & Co. increased its holdings in Penumbra by 437.0% in the 1st quarter. JPMorgan Chase & Co. now owns 703,634 shares of the company’s stock worth $188,159,000 after buying an additional 572,606 shares during the period. Norges Bank acquired a new position in Penumbra in the 2nd quarter worth approximately $114,014,000. Lord Abbett & CO. LLC acquired a new position in Penumbra in the 1st quarter worth approximately $63,731,000. Finally, Qube Research & Technologies Ltd acquired a new position in Penumbra in the 2nd quarter worth approximately $53,818,000. 88.88% of the stock is owned by hedge funds and other institutional investors.

Penumbra Trading Up 17.1%

The company’s fifty day moving average is $256.21 and its two-hundred day moving average is $258.61. The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.04 and a current ratio of 6.75. The company has a market cap of $10.30 billion, a price-to-earnings ratio of 70.06, a P/E/G ratio of 2.10 and a beta of 0.51.

Penumbra Company Profile

Penumbra, Inc, together with its subsidiaries, designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers peripheral products, including the Indigo System for power aspiration of thrombus in the body; Lightning Flash, a mechanical thrombectomy system; Lightning Bolt 7, an arterial thrombectomy system; and CAT RX.