Penguin Solutions (NASDAQ:PENG) Trading Down 9.6% – Should You Sell?

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

Analyst Ratings Changes

PENG has been the topic of several recent analyst reports. Citizens Jmp raised Penguin Solutions to a “strong-buy” rating in a research report on Monday, November 18th. Stifel Nicolaus reduced their price target on shares of Penguin Solutions from $32.00 to $27.00 and set a “buy” rating for the company in a research note on Wednesday, October 16th. Loop Capital began coverage on shares of Penguin Solutions in a research report on Tuesday, January 7th. They set a “buy” rating and a $30.00 price objective on the stock. Rosenblatt Securities reaffirmed a “buy” rating and issued a $27.00 target price on shares of Penguin Solutions in a research report on Thursday, December 19th. Finally, The Goldman Sachs Group began coverage on Penguin Solutions in a report on Friday, November 1st. They set a “buy” rating and a $21.00 price target on the stock. Six investment analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $25.43.

Penguin Solutions Price Performance

The firm has a market cap of $1.04 billion, a price-to-earnings ratio of -19.58 and a beta of 1.69. The company has a quick ratio of 2.19, a current ratio of 2.65 and a debt-to-equity ratio of 1.65. The business has a 50-day moving average of $18.78.

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 positive return on equity of 8.05% and a negative net margin of 4.48%. Analysts predict that Penguin Solutions will post 1.33 earnings per share for the current year.

Insider Buying and Selling

In other Penguin Solutions news, COO Jack A. Pacheco sold 6,666 shares of the company’s stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $20.00, for a total value of $133,320.00. Following the completion of the transaction, the chief operating officer now directly owns 235,960 shares in the company, valued at $4,719,200. This represents a 2.75 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Joseph Gates Clark sold 2,264 shares of the firm’s stock in a transaction on Thursday, November 14th. The shares were 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 in the company, valued at $1,679,982.50. The trade was a 2.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 22,264 shares of company stock valued at $440,287. 2.60% of the stock is owned by corporate insiders.

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.