Penguin Solutions Inc

PENG is in a confirmed Stage 4 decline with price below key EMAs and the 50DMA acting as support. The medium-term bias is bearish, but price is currently holding near the 50DMA, making fresh bearish entries unfavorable. We will look to sell into rallies into the 9/21 EMA resistance zone on rejection rather than initiating here.

• ↑Q3 revenue $479 M (+47.7% YoY), $57.6 M above forecasts.
• ↑Non-GAAP EPS $0.84 beat by $0.28; net income $44.7 M.
• ↓Negative earnings yield and low book-to-price ratios suggest overvaluation.