Wall Street Zen Downgrades Penguin Solutions (NASDAQ:PENG) to Hold

Penguin Solutions (NASDAQ:PENG) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday.

PENG has been the subject of several other reports. The Goldman Sachs Group started coverage on shares of Penguin Solutions in a research report on Tuesday, January 13th. They set a “buy” rating and a $25.00 target price for the company. Rosenblatt Securities restated a “buy” rating and set a $30.00 price target on shares of Penguin Solutions in a report on Monday, March 30th. Stifel Nicolaus cut their price target on shares of Penguin Solutions from $27.00 to $24.00 and set a “buy” rating on the stock in a report on Thursday, April 2nd. Needham & Company LLC boosted their price target on shares of Penguin Solutions from $25.00 to $27.00 and gave the stock a “buy” rating in a report on Thursday, April 2nd. Finally, Zacks Research upgraded shares of Penguin Solutions from a “hold” rating to a “strong-buy” rating in a report on Tuesday, April 7th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Penguin Solutions has an average rating of “Moderate Buy” and an average target price of $27.25.

Penguin Solutions Stock Performance

NASDAQ:PENG opened at $44.23 on Friday. The company has a debt-to-equity ratio of 1.09, a current ratio of 2.10 and a quick ratio of 1.55. The firm has a 50-day moving average of $22.58 and a 200-day moving average of $21.02. The company has a market cap of $2.24 billion, a PE ratio of 61.43 and a beta of 2.66. Penguin Solutions has a one year low of $16.04 and a one year high of $44.74.

Penguin Solutions (NASDAQ:PENG) last posted its earnings results on Wednesday, April 1st. The company reported $0.52 EPS for the quarter, topping the consensus estimate of $0.43 by $0.09. The company had revenue of $343.00 million during the quarter, compared to the consensus estimate of $339.00 million. Penguin Solutions had a net margin of 4.07% and a return on equity of 19.94%. As a group, equities research analysts expect that Penguin Solutions will post 1.66 EPS for the current fiscal year.

Insider Activity

In other news, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $17.75, for a total transaction of $71,000.00. Following the completion of the transaction, the senior vice president directly owned 131,352 shares of the company’s stock, valued at $2,331,498. This represents a 2.96% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Joseph Gates Clark sold 12,546 shares of the stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $22.55, for a total transaction of $282,912.30. Following the transaction, the senior vice president directly owned 99,726 shares of the company’s stock, valued at $2,248,821.30. This represents a 11.17% 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. Over the last 90 days, insiders have sold 30,115 shares of company stock worth $723,997. 2.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of PENG. Royal Bank of Canada bought a new position in shares of Penguin Solutions during the 1st quarter valued at approximately $7,250,000. Amundi bought a new stake in shares of Penguin Solutions in the first quarter valued at $373,000. AQR Capital Management LLC bought a new stake in shares of Penguin Solutions in the first quarter valued at $1,076,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in shares of Penguin Solutions in the first quarter valued at $538,000. Finally, Goldman Sachs Group Inc. bought a new stake in shares of Penguin Solutions in the first quarter valued at $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.