Penguin Solutions (NASDAQ:PENG) Shares Gap Down – Should You Sell?

Shares of Penguin Solutions, Inc. (NASDAQ:PENG) gapped down before the market opened on Tuesday . The stock had previously closed at $67.71, but opened at $62.96. Penguin Solutions shares last traded at $61.9170, with a volume of 516,440 shares.

Analyst Upgrades and Downgrades

PENG has been the topic of a number of recent analyst reports. Rosenblatt Securities upped their target price on Penguin Solutions from $65.00 to $75.00 and gave the company a “buy” rating in a research report on Monday. Wall Street Zen raised shares of Penguin Solutions from a “hold” rating to a “buy” rating in a research report on Sunday, May 17th. Zacks Research upgraded shares of Penguin Solutions from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, June 30th. Stifel Nicolaus upped their price target on shares of Penguin Solutions from $24.00 to $66.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Finally, Barclays downgraded shares of Penguin Solutions from an “overweight” rating to an “equal weight” rating and increased their price objective for the company from $23.00 to $27.00 in a research note on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $38.12.

Penguin Solutions Stock Down 6.9%

The company has a market capitalization of $3.20 billion, a price-to-earnings ratio of 87.32 and a beta of 2.83. The stock’s fifty day simple moving average is $54.96 and its two-hundred day simple moving average is $32.37. The company has a debt-to-equity ratio of 1.09, a current ratio of 2.10 and a quick ratio of 1.55.

Insider Buying and Selling at Penguin Solutions

In related news, SVP Joseph Gates Clark sold 10,351 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $58.87, for a total transaction of $609,363.37. Following the sale, the senior vice president owned 66,425 shares in the company, valued at $3,910,439.75. This represents a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sandeep Nayyar sold 7,107 shares of the firm’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $43.48, for a total transaction of $309,012.36. Following the completion of the transaction, the director directly owned 25,417 shares in the company, valued at $1,105,131.16. This represents a 21.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 83,120 shares of company stock worth $3,486,734 in the last quarter. 2.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Penguin Solutions

A number of hedge funds have recently added to or reduced their stakes in PENG. Farther Finance Advisors LLC boosted its holdings in shares of Penguin Solutions by 187.0% during the fourth quarter. Farther Finance Advisors LLC now owns 1,452 shares of the company’s stock valued at $28,000 after acquiring an additional 946 shares during the period. Kestra Advisory Services LLC acquired a new stake in shares of Penguin Solutions in the 4th quarter worth about $29,000. Raymond James Financial Inc. bought a new stake in Penguin Solutions in the 2nd quarter valued at about $37,000. Allworth Financial LP lifted its position in Penguin Solutions by 41.4% in the 3rd quarter. Allworth Financial LP now owns 1,792 shares of the company’s stock valued at $47,000 after purchasing an additional 525 shares during the last quarter. Finally, Torren Management LLC bought a new stake in Penguin Solutions in the 4th quarter valued at about $48,000.

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.