Penguin Solutions (NASDAQ:PENG) Shares Down 9.6% – Here’s Why

Penguin Solutions (NASDAQ:PENG) dropped 9.6% on Monday . The stock traded as low as $18.53 and last traded at $18.67. Approximately 316,292 shares were traded during trading, a decline of 70% from the average daily volume of 1,065,991 shares. The stock had previously closed at $20.65.

Wall Street Analyst Weigh In

Several analysts have recently commented on PENG shares. Barclays increased their price target on shares of Penguin Solutions from $22.00 to $23.00 and gave the company an “overweight” rating in a research report on Thursday. Needham & Company LLC raised their price target on shares of Penguin Solutions from $25.00 to $27.00 and gave the company a “buy” rating in a report on Thursday. Stifel Nicolaus cut their target price on Penguin Solutions from $32.00 to $27.00 and set a “buy” rating on the stock in a research report on Wednesday, October 16th. Loop Capital initiated coverage on shares of Penguin Solutions in a research report on Tuesday, January 7th. They set a “buy” rating and a $30.00 price target on the stock. Finally, JMP Securities started coverage on shares of Penguin Solutions in a report on Monday, November 18th. They issued an “outperform” rating and a $23.00 target price on the stock. Six equities research analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average target price of $25.43.

Penguin Solutions Price Performance

The business’s 50 day moving average price is $18.67. The company has a market capitalization of $1.02 billion, a PE ratio of -19.05 and a beta of 1.69. The company has a current ratio of 2.65, a quick ratio of 2.19 and a debt-to-equity ratio of 1.65.

Penguin Solutions (NASDAQ:PENG) last posted its quarterly earnings data on Tuesday, October 15th. The company reported $0.23 EPS for the quarter, missing the consensus estimate of $0.27 by ($0.04). The company had revenue of $311.15 million during the quarter, compared to the consensus estimate of $325.00 million. Penguin Solutions had a negative net margin of 4.48% and a positive return on equity of 8.05%. On average, sell-side analysts expect that Penguin Solutions will post 1.33 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, COO Jack A. Pacheco sold 6,666 shares of the company’s stock in a transaction dated Thursday, December 26th. The shares were sold at an average price of $20.00, for a total value of $133,320.00. Following the transaction, the chief operating officer now owns 235,960 shares in the company, valued at approximately $4,719,200. This represents a 2.75 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Joseph Gates Clark sold 2,264 shares of the firm’s stock in a transaction that occurred on Thursday, November 14th. The stock was sold at an average price of $17.50, for a total transaction of $39,620.00. Following the sale, the insider now owns 95,999 shares of the company’s stock, valued at $1,679,982.50. This trade represents a 2.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 22,264 shares of company stock worth $440,287. 2.60% of the stock is owned by insiders.

Penguin Solutions Company Profile

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.