Penguin Solutions (NASDAQ:PENG) Stock Falls 8.1% – Here’s What Happened

Penguin Solutions, Inc. (NASDAQ:PENG) shares traded down 8.1% during mid-day trading on Wednesday. The stock traded as low as $71.88 and last traded at $71.8550. 1,411,501 shares were traded during mid-day trading, a decline of 44% from the average session volume of 2,510,118 shares. The stock had previously closed at $78.20.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. The Goldman Sachs Group reiterated a “buy” rating and set a $85.00 price target on shares of Penguin Solutions in a report on Wednesday, October 7th. Zacks Research upgraded Penguin Solutions from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 9th. Barclays lifted their target price on Penguin Solutions from $40.00 to $60.00 and gave the stock an “underweight” rating in a report on Wednesday, October 7th. Needham & Company LLC lifted their target price on Penguin Solutions from $80.00 to $85.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Penguin Solutions in a research report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $87.50.

Penguin Solutions Price Performance

The stock has a market capitalization of $3.54 billion, a PE ratio of 26.81, a PEG ratio of 0.94 and a beta of 2.86. The firm’s fifty day moving average price is $56.11 and its two-hundred day moving average price is $51.60. The company has a quick ratio of 1.25, a current ratio of 1.88 and a debt-to-equity ratio of 1.37.

Penguin Solutions (NASDAQ:PENG) last issued its earnings results on Tuesday, October 6th. The company reported $1.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.77 by $0.23. The company had revenue of $566.68 million for the quarter, compared to analysts’ expectations of $520.99 million. Penguin Solutions had a net margin of 10.43% and a return on equity of 36.71%. During the same quarter last year, the company posted $0.11 earnings per share. Penguin Solutions has set its FY 2027 guidance at 3.750-5.15 EPS. On average, equities analysts predict that Penguin Solutions, Inc. will post 4.05 earnings per share for the current year.

Insider Activity

In other Penguin Solutions news, SVP Joseph Clark sold 1,327 shares of the company’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 transaction, the senior vice president directly owned 63,056 shares in the company, valued at $3,623,828.32. This represents a 2.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction 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 completion of the sale, the senior vice president directly owned 112,994 shares of the company’s stock, valued at approximately $5,715,236.52. This trade represents a 3.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Penguin Solutions

Several large investors have recently made changes to their positions in the business. Global Retirement Partners LLC bought a new stake in Penguin Solutions in the 2nd quarter valued at $26,000. Allworth Financial LP bought a new stake in shares of Penguin Solutions in the second quarter worth about $37,000. Nykredit A S bought a new position in Penguin Solutions during the second quarter valued at approximately $42,000. Polaris Financial Partners purchased a new position in Penguin Solutions during the 3rd quarter valued at approximately $50,000. Finally, Public Employees Retirement System of Ohio bought a new position in shares of Penguin Solutions during the 2nd quarter valued at approximately $74,000.

About Penguin Solutions

Penguin Solutions, Inc provides intelligent infrastructure solutions for artificial intelligence, high-performance computing, enterprise data centers and other demanding technology environments. The company combines specialized hardware, software and professional services to help organizations design, deploy and manage complex computing infrastructure.

Its offerings include AI and high-performance computing systems, servers, storage and networking infrastructure, as well as software and services for infrastructure management, optimization and support.