Seagate Technology (NASDAQ:STX) Shares Gap Down – Should You Sell?

Seagate Technology Holdings PLC (NASDAQ:STX)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $965.00, but opened at $896.74. Seagate Technology shares last traded at $926.7690, with a volume of 627,986 shares traded.

Trending Headlines about Seagate Technology

Here are the key news stories impacting Seagate Technology this week:

• Positive Sentiment: Bank of America raised its price target on Seagate to $1,150 from $1,000 and kept a buy rating, signaling confidence in upside potential. Benzinga article
• Positive Sentiment: Zacks upgraded Seagate to a Strong Buy, citing improving earnings expectations and strengthening growth momentum. Zacks article
• Positive Sentiment: Zacks also highlighted Seagate as an “incredible growth stock,” pointing to solid growth attributes and strong momentum. Zacks article
• Neutral Sentiment: Several articles noted Seagate’s data-center business is growing quickly, supported by cloud demand, Mozaic adoption, and long-term supply agreements through fiscal 2027. Zacks article
• Negative Sentiment: Shares fell with the broader memory group as traders worried about a possible supply glut; the weakness was described as a sector-wide pullback rather than a company-specific issue. 247WallSt article
• Negative Sentiment: CEO William D. Mosley disclosed two stock sales totaling more than 30,000 shares, which can weigh on sentiment even though both were made under a pre-arranged 10b5-1 trading plan.
• Negative Sentiment: Zacks Research downgraded Seagate from Strong Buy to Hold, creating a small headwind for bullish investor sentiment. Zacks.com article

Wall Street Analysts Forecast Growth

STX has been the topic of several analyst reports. Evercore increased their price objective on Seagate Technology from $750.00 to $1,000.00 and gave the company an “outperform” rating in a research note on Tuesday, May 12th. Bank of America upped their price target on Seagate Technology from $1,000.00 to $1,150.00 and gave the stock a “buy” rating in a report on Wednesday. Fox Advisors lowered Seagate Technology from an “overweight” rating to an “equal weight” rating in a research report on Monday, June 22nd. Citigroup lifted their price objective on Seagate Technology from $740.00 to $1,150.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Finally, BNP Paribas Exane upped their target price on shares of Seagate Technology from $530.00 to $860.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 29th. Twenty-one investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $880.52.

Seagate Technology Trading Down 10.4%

The stock has a market cap of $183.90 billion, a price-to-earnings ratio of 77.81 and a beta of 2.04. The business’s 50 day moving average is $848.51 and its 200 day moving average is $548.43. The company has a debt-to-equity ratio of 3.16, a current ratio of 1.33 and a quick ratio of 0.85.

Seagate Technology (NASDAQ:STX) last posted its quarterly earnings results on Tuesday, April 28th. The data storage provider reported $4.10 earnings per share for the quarter, beating analysts’ consensus estimates of $3.51 by $0.59. The company had revenue of $3.11 billion for the quarter, compared to analysts’ expectations of $2.96 billion. Seagate Technology had a return on equity of 1,005.65% and a net margin of 21.60%.Seagate Technology’s quarterly revenue was up 44.1% on a year-over-year basis. During the same period last year, the firm earned $1.90 earnings per share. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. As a group, equities analysts expect that Seagate Technology Holdings PLC will post 14.26 earnings per share for the current fiscal year.

Seagate Technology Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Wednesday, June 24th will be given a dividend of $0.74 per share. This represents a $2.96 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Wednesday, June 24th. Seagate Technology’s dividend payout ratio (DPR) is 28.08%.

Insiders Place Their Bets

In related news, EVP Ban Seng Teh sold 989 shares of the company’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $880.19, for a total value of $870,507.91. Following the completion of the transaction, the executive vice president directly owned 4,290 shares of the company’s stock, valued at $3,776,015.10. This represents a 18.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 903 shares of the stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $880.19, for a total transaction of $794,811.57. Following the completion of the transaction, the chief financial officer owned 42,860 shares in the company, valued at $37,724,943.40. This represents a 2.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 151,069 shares of company stock worth $126,191,753 in the last three months. 0.79% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. PFA Pension Forsikringsaktieselskab acquired a new position in shares of Seagate Technology in the 4th quarter valued at $23,882,000. New York State Teachers Retirement System boosted its stake in Seagate Technology by 5.0% during the 4th quarter. New York State Teachers Retirement System now owns 187,044 shares of the data storage provider’s stock worth $51,510,000 after purchasing an additional 8,991 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its stake in Seagate Technology by 1.2% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 518,806 shares of the data storage provider’s stock worth $142,874,000 after purchasing an additional 6,028 shares during the period. Praxis Investment Management Inc. grew its position in Seagate Technology by 56.5% during the 4th quarter. Praxis Investment Management Inc. now owns 6,615 shares of the data storage provider’s stock worth $1,822,000 after purchasing an additional 2,389 shares during the last quarter. Finally, Ritholtz Wealth Management grew its position in Seagate Technology by 64.5% during the 4th quarter. Ritholtz Wealth Management now owns 21,321 shares of the data storage provider’s stock worth $5,872,000 after purchasing an additional 8,358 shares during the last quarter. 92.87% of the stock is owned by hedge funds and other institutional investors.

Seagate Technology Company Profile

Seagate Technology (NASDAQ: STX) is a global data storage company that designs, manufactures and sells a broad range of storage products and systems. The firm’s product portfolio includes traditional hard disk drives (HDDs), solid-state drives (SSDs), hybrid storage devices and integrated storage systems aimed at enterprise, cloud, OEM and consumer markets. Seagate also provides services that support its hardware offerings, including data recovery and storage management solutions.

Seagate’s products are used in a wide array of applications, from large-scale data centers and cloud infrastructure to desktop and portable consumer devices.