Research analysts at Wall Street Zen have downgraded Penumbra, Inc. (NYSE:PEN) from a “buy” rating to a “hold” rating, as reported in a research document released on Saturday. This marks a notable shift in sentiment for the company, which designs and manufactures medical devices globally, including various thrombectomy systems.
Other firms have also recently reassessed their outlook on Penumbra, with UBS Group maintaining a “buy” rating and setting a price target of $335.00 on July 30. Conversely, Wells Fargo & Company established a lower price objective of $290.00 on October 1. Similarly, Evercore ISI reduced its price target from $300.00 to $285.00 while issuing an “outperform” rating on October 7. Truist Financial followed suit, lowering its price goal from $310.00 to $300.00 and maintaining a “buy” rating on October 15. Needham & Company LLC reaffirmed a “buy” rating with a price target of $326.00 on October 27.
An analysis of the company’s ratings reveals a mixed outlook. One investment analyst has rated the stock as a “Strong Buy,” while fourteen others have issued “Buy” ratings, and three analysts currently recommend a “Hold.” According to data from MarketBeat, Penumbra has an average rating of “Moderate Buy” with a consensus price target of $305.94.
Recent Insider Transactions Raise Eyebrows
In addition to the ratings changes, there has been significant insider trading activity. Chief Financial Officer Maggie Yuen sold 2,000 shares of Penumbra on August 13 at an average price of $250.00, amounting to a total of $500,000.00. Following this transaction, Yuen’s holdings decreased by 13.38%, leaving her with 12,943 shares valued at approximately $3,235,750.
Additionally, CEO Adam Elsesser divested 16,030 shares on August 6 at an average price of $238.20, resulting in a total transaction value of $3,818,346.00. After this sale, Elsesser holds 158,204 shares, valued at around $37,684,192.80, representing a 9.20% decrease in his position. Over the past ninety days, insiders have sold a total of 64,460 shares worth approximately $16,322,614, with corporate insiders currently owning 4.20% of the stock.
Institutional Investors Adjust Holdings
A number of institutional investors have made adjustments to their holdings in Penumbra. Sumitomo Mitsui Trust Group Inc. increased its stake by 2.4% in the first quarter, now owning 6,418 shares valued at $1,716,000 after acquiring an additional 148 shares. KBC Group NV also raised its stake by 10.9%, now holding 1,603 shares valued at $429,000.
First Horizon Advisors Inc. recorded a substantial increase of 404.8% in its stake, now owning 106 shares worth $28,000 after acquiring an additional 85 shares. Teacher Retirement System of Texas raised its position by 36.8%, now owning 10,773 shares valued at $2,881,000 following the acquisition of 2,897 shares. Lastly, Silver Oak Securities Incorporated purchased a new stake worth approximately $278,000 in the first quarter.
Institutional investors now control 88.88% of Penumbra’s stock, reflecting significant confidence in the company’s long-term prospects despite recent downgrades.
Penumbra, Inc. continues to be a key player in the medical devices sector, with its innovative products designed to address critical health needs. As analysts and investors navigate the current market conditions, the company’s performance will remain under scrutiny.
