Penumbra, Inc. (NYSE:PEN) has faced a notable shift in analyst sentiment, with Wall Street Zen downgrading its rating from “buy” to “hold” in a report issued on Saturday. This adjustment reflects a broader trend among analysts who have recently reassessed their positions on the company’s stock.
Analysts have varied opinions on Penumbra’s future performance. UBS Group set a price target of $335.00 while maintaining a “buy” rating on July 30. Conversely, Wells Fargo & Company established a lower price objective of $290.00 in their analysis dated October 1. On October 7, Evercore ISI reduced their price target from $300.00 to $285.00 but still rated the stock as “outperform.” Truist Financial followed suit, lowering their price target to $300.00 while keeping their “buy” rating intact on October 15. Needham & Company LLC reaffirmed a “buy” rating and set a target price of $326.00 on October 27.
As a result of these evaluations, one analyst has assigned a Strong Buy rating, fourteen have given a Buy rating, and three have issued a Hold rating on Penumbra’s stock. According to MarketBeat data, the company currently holds an average rating of “Moderate Buy” and a consensus price target of $305.94.
Insider Transactions and Market Activity
Recent insider trading activity has further highlighted the dynamics at Penumbra. Chief Financial Officer Maggie Yuen sold 2,000 shares at an average price of $250.00 on August 13, netting $500,000.00. Following this transaction, Yuen’s holdings decreased to 12,943 shares, valued at approximately $3,235,750, marking a 13.38% reduction in her position. The transaction was disclosed in a filing with the Securities and Exchange Commission (SEC).
CEO Adam Elsesser also participated in insider selling, offloading 16,030 shares on August 6 at an average price of $238.20. This sale amounted to around $3,818,346.00, and resulted in a 9.20% decrease in his ownership, leaving him with 158,204 shares valued at approximately $37,684,192.80. Over the past ninety days, insiders have sold a total of 64,460 shares worth around $16,322,614. Currently, corporate insiders hold 4.20% of the stock.
Institutional Investors Adjust Their Stakes
Institutional investors are also making strategic adjustments to their holdings in Penumbra. In the first quarter, Sumitomo Mitsui Trust Group Inc. increased its stake by 2.4%, owning 6,418 shares worth $1,716,000 after acquiring an additional 148 shares. KBC Group NV raised its investment by 10.9%, now holding 1,603 shares valued at $429,000.
First Horizon Advisors Inc. made a significant move by increasing their stake by 404.8%, now owning 106 shares worth $28,000. Teacher Retirement System of Texas raised its stake by 36.8%, accumulating 10,773 shares valued at $2,881,000 after adding 2,897 shares. Additionally, Silver Oak Securities Incorporated acquired a new stake valued at approximately $278,000.
Overall, institutional investors possess 88.88% of Penumbra’s stock, which suggests a strong interest in the company despite the recent downgrades.
Penumbra, Inc. specializes in designing, developing, manufacturing, and marketing medical devices globally. Its product portfolio includes innovative peripheral products such as the Indigo System for thrombus aspiration, Lightning Flash and Lightning Bolt systems for thrombectomy, and CAT RX.
The ongoing analysis and insider trading at Penumbra reflect the complexities of the company’s market position and investor sentiment. As analysts continue to evaluate Penumbra’s potential, stakeholders remain watchful of further developments that may impact the company’s trajectory.
