Penguin Solutions (NASDAQ:PENG) Shares Gap Down – Time to Sell?

Penguin Solutions, Inc. (NASDAQ:PENG) shares gapped down before the market opened on Friday . The stock had previously closed at $66.77, but opened at $63.20. Penguin Solutions shares last traded at $61.47, with a volume of 476,996 shares.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. Stifel Nicolaus upped their target price on shares of Penguin Solutions from $24.00 to $66.00 and gave the stock a “buy” rating in a research note on Tuesday, June 2nd. Rosenblatt Securities raised their price target on shares of Penguin Solutions from $54.00 to $65.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Zacks Research cut shares of Penguin Solutions from a “strong-buy” rating to a “hold” rating in a report on Monday, June 1st. Barclays downgraded shares of Penguin Solutions from an “overweight” rating to an “equal weight” rating and upped their price objective for the stock from $23.00 to $27.00 in a research report on Wednesday, April 22nd. Finally, Weiss Ratings cut shares of Penguin Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 13th. Six investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $36.88.

Penguin Solutions Price Performance

The company has a current ratio of 2.10, a quick ratio of 1.55 and a debt-to-equity ratio of 1.09. The company has a market cap of $3.16 billion, a P/E ratio of 86.50 and a beta of 2.89. The business’s fifty day moving average is $50.18 and its 200 day moving average is $30.36.

Penguin Solutions (NASDAQ:PENG) last announced its quarterly earnings data on Wednesday, April 1st. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.09. Penguin Solutions had a return on equity of 19.94% and a net margin of 4.07%.The business had revenue of $343.00 million during the quarter, compared to analyst estimates of $339.00 million. As a group, sell-side analysts anticipate that Penguin Solutions, Inc. will post 1.79 EPS for the current year.

Insider Buying and Selling at Penguin Solutions

In related news, Director Sandeep Nayyar sold 7,107 shares of the firm’s stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $43.48, for a total value of $309,012.36. Following the completion of the transaction, the director directly owned 25,417 shares of the company’s stock, valued at approximately $1,105,131.16. This trade represents a 21.85% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Joseph Gates Clark sold 10,351 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The stock was 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 of the company’s stock, valued at approximately $3,910,439.75. This trade represents a 13.48% 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 83,120 shares of company stock valued at $3,486,734. 2.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Penguin Solutions

Hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its holdings in Penguin Solutions by 0.4% in the 3rd quarter. Vanguard Group Inc. now owns 6,592,564 shares of the company’s stock valued at $173,253,000 after purchasing an additional 25,804 shares during the period. State Street Corp increased its holdings in shares of Penguin Solutions by 3.2% in the fourth quarter. State Street Corp now owns 2,957,938 shares of the company’s stock worth $57,857,000 after purchasing an additional 91,805 shares during the period. Dimensional Fund Advisors LP raised its position in shares of Penguin Solutions by 4.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,388,748 shares of the company’s stock worth $46,726,000 after buying an additional 95,585 shares in the last quarter. Invesco Ltd. raised its position in shares of Penguin Solutions by 596.8% in the fourth quarter. Invesco Ltd. now owns 1,992,415 shares of the company’s stock worth $38,972,000 after buying an additional 1,706,482 shares in the last quarter. Finally, Paradigm Capital Management Inc. NY boosted its stake in Penguin Solutions by 73.8% during the first quarter. Paradigm Capital Management Inc. NY now owns 1,605,100 shares of the company’s stock valued at $28,250,000 after buying an additional 681,700 shares during the period.

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.