Penguin Solutions Inc

PENG is in Stage 3 distribution, evidenced by failed rallies and price below the 9/21 EMAs. The medium-term bias is bearish, but price is currently holding at 50DMA support, making fresh short entries unfavorable. We will trim into rallies into the 9/21 EMA and 50DMA resistance area.

• ↑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.