The 23-year-old - who can operate anywhere down the left side - was released by the Owls in the summer and subsequently signed a two-year deal with the Suffolk outfit.
Penney spoke about his intention to ‘kick on’ his career again with Ipswich following a frustrating few years at Hillsborough.
The Chesterfield-born player made just two appearances under Moore, with his final one coming in the 3-0 loss at Reading on March 6.
Moore, whose side visit Portman Road on Saturday, said: “We spoke to his advisor and everything else in the summer, but it was not to be.
“No problem - that is what football is all about. Some you win, some you don’t.
“But Matt has done well and got a good move to a good club and we know the capabilities that he possesses.
“We just felt at the time, there were contract offers that went on the table or not and it was a matter of changing (the squad).
“At the time, his contract had ran out and he had opportunities coming in and he’s picked up a good opportunity in Ipswich and we wish him well going forward. I am sure we will see him this weekend.
“We continue to move forward ourselves.”