NEWARK, CA—Clark Joseph Gates, President of Optimized LED at Penguin Solutions, Inc. (NASDAQ:PENG), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Gates sold 2,264 ordinary shares on November 14 at a price of $17.50 per share, totaling $39,620. This transaction was executed under a pre-established Rule 10b5-1 plan, which Gates adopted on August 15, 2024. Following this sale, Gates now holds 95,999 shares directly.
In other recent news, Penguin Solutions experienced a shortfall in Q4 earnings and revenue, missing analyst expectations. The company reported adjusted earnings per share of $0.37 and revenue of $311 million, both falling below projections. For fiscal year 2024, revenue was reported at $1.17 billion, marking a decrease from the previous year. Penguin Solutions' non-GAAP EPS for the year was $1.25, a significant drop from the previous year's $2.52. Looking ahead, the company forecasts a fiscal 2025 EPS of $1.50-$1.90, falling below analyst expectations, and a revenue of $260-290 million, indicating a potential 15% year-over-year growth.
Despite the earnings miss, Goldman Sachs issued a Buy rating for Penguin Solutions, citing the company's strong position in the enterprise AI compute sector and an anticipated recovery in its more cyclical business areas. Similarly, Stifel, Rosenblatt, and Needham maintained a Buy rating on the company's stock, despite reducing the price target. These recent developments highlight Penguin Solutions' ongoing market dynamics and financial performance.
InvestingPro Insights
In light of Clark Joseph Gates' recent sale of Penguin Solutions, Inc. (NASDAQ:PENG) shares, it's worth examining some key financial metrics and insights provided by InvestingPro.
As of the latest data, Penguin Solutions has a market capitalization of $878.75 million. The company's stock has experienced significant volatility recently, with the price falling 19.07% over the past three months. This decline aligns with one of the InvestingPro Tips, which notes that "Price has fallen significantly over the last three months."
Despite the recent share price decline, InvestingPro Tips suggest that "Net income is expected to grow this year," and "Analysts predict the company will be profitable this year." These projections could indicate potential for future stock price recovery, which may be of interest to investors considering the recent insider sale.
It's also noteworthy that Penguin Solutions has a price-to-book ratio of 2.24, suggesting the stock is trading above its book value. The company's revenue for the last twelve months stands at $1.17 billion, although it has experienced a revenue decline of 18.77% over the same period.
For those interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for Penguin Solutions, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.