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

Penguin Solutions, Inc. (NASDAQ:PENG)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $52.62, but opened at $50.68. Penguin Solutions shares last traded at $49.4050, with a volume of 219,280 shares trading hands.

Analyst Upgrades and Downgrades

PENG has been the subject of several analyst reports. Barclays cut shares of Penguin Solutions from an “equal weight” rating to an “underweight” rating and set a $40.00 price target for the company. in a report on Monday, July 20th. Needham & Company LLC boosted their target price on shares of Penguin Solutions from $60.00 to $80.00 and gave the stock a “buy” rating in a research note on Wednesday, July 8th. Zacks Research raised Penguin Solutions from a “hold” rating to a “strong-buy” rating in a report on Tuesday, June 30th. Weiss Ratings upgraded Penguin Solutions from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 8th. Finally, Citigroup reaffirmed an “outperform” rating on shares of Penguin Solutions in a report on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $63.33.

Penguin Solutions Stock Performance

The firm has a fifty day simple moving average of $61.37 and a 200-day simple moving average of $42.43. The company has a quick ratio of 1.10, a current ratio of 1.54 and a debt-to-equity ratio of 0.65. The company has a market cap of $2.58 billion, a PE ratio of 35.73 and a beta of 2.87.

Penguin Solutions (NASDAQ:PENG) last announced its earnings results on Tuesday, July 7th. The company reported $0.84 earnings per share (EPS) 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 return on equity of 28.23% and a net margin of 6.44%.During the same period in the prior year, the firm earned $0.52 EPS. On average, research analysts forecast that Penguin Solutions, Inc. will post 2.08 EPS for the current fiscal year.

Insider Buying and Selling

In other news, SVP Anne Kuykendall sold 4,000 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $64.38, for a total transaction of $257,520.00. Following the transaction, the senior vice president directly owned 120,794 shares in the company, valued at approximately $7,776,717.72. This trade represents a 3.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Joseph Gates Clark sold 10,351 shares of Penguin Solutions stock in a transaction on Monday, June 1st. The shares were sold at an average price of $58.87, for a total transaction of $609,363.37. Following the completion of the transaction, the senior vice president directly owned 66,425 shares in the company, valued at $3,910,439.75. The trade was a 13.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 15,678 shares of company stock worth $943,146. Insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Penguin Solutions

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada acquired a new stake in Penguin Solutions during the 1st quarter worth approximately $7,250,000. Amundi acquired a new stake in shares of Penguin Solutions during the first quarter worth $373,000. AQR Capital Management LLC purchased a new position in Penguin Solutions in the 1st quarter valued at $1,076,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in Penguin Solutions in the 1st quarter valued at $538,000. Finally, Goldman Sachs Group Inc. purchased a new position in Penguin Solutions during the 1st quarter worth $3,259,000.

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.