Penguin Solutions (NASDAQ:PENG) Stock Jumps 4.2% on Analyst Upgrade

Penguin Solutions, Inc. (NASDAQ:PENG) shares were up 4.2% on Monday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $80.10 and last traded at $79.47. 2,301,254 shares were traded during mid-day trading, a decline of 8% from the average session volume of 2,494,623 shares. The stock had previously closed at $76.28.

A number of other equities analysts have also recently commented on the stock. Bank of America initiated coverage on shares of Penguin Solutions in a research note on Friday, October 9th. They issued a “buy” rating and a $100.00 price target for the company. Rosenblatt Securities lifted their price objective on shares of Penguin Solutions from $80.00 to $100.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th. Deutsche Bank Aktiengesellschaft set a $100.00 price objective on shares of Penguin Solutions in a report on Friday. Barclays upped their target price on shares of Penguin Solutions from $40.00 to $60.00 and gave the stock an “underweight” rating in a research report on Wednesday, October 7th. Finally, Needham & Company LLC increased their target price on Penguin Solutions from $80.00 to $85.00 and gave the company a “buy” rating in a research note on Wednesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $87.50.

Insider Activity at Penguin Solutions

In other news, SVP Joseph Clark sold 1,327 shares of the company’s stock in a transaction 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 shares were sold at an average price of $50.58, for a total transaction of $202,320.00. Following the transaction, the senior vice president directly owned 112,994 shares in the company, valued at approximately $5,715,236.52. This represents a 3.42% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.90% of the company’s stock.

Institutional Trading of Penguin Solutions

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

Penguin Solutions Trading Down 1.2%

The company has a debt-to-equity ratio of 1.37, a quick ratio of 1.25 and a current ratio of 1.88. The firm has a 50-day moving average of $56.11 and a 200-day moving average of $51.60. The firm has a market capitalization of $4.01 billion, a P/E ratio of 32.98, a price-to-earnings-growth ratio of 0.94 and a beta of 2.86.

Penguin Solutions (NASDAQ:PENG) last announced its quarterly earnings data on Tuesday, October 6th. The company reported $1.00 earnings per share for the quarter, beating the consensus estimate of $0.77 by $0.23. The firm had revenue of $566.68 million during the quarter, compared to the consensus estimate of $520.99 million. Penguin Solutions had a return on equity of 36.71% and a net margin of 10.43%. During the same quarter in the previous 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 research analysts anticipate that Penguin Solutions, Inc. will post 4.05 EPS for the current fiscal year.

Penguin Solutions Company Profile

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.