Seagate Technology (NASDAQ:STX) Shares Up 2.5% – Should You Buy?

Seagate Technology Holdings PLC (NASDAQ:STX)’s share price was up 2.5% on Thursday . The company traded as high as $816.68 and last traded at $803.13. Approximately 4,812,780 shares changed hands during trading, an increase of 11% from the average session volume of 4,322,525 shares. The stock had previously closed at $783.18.

Key Headlines Impacting Seagate Technology

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

• Positive Sentiment: Seagate has significantly outperformed other AI-infrastructure stocks over the past year, while Wall Street remains optimistic. The consensus rating is “Moderate Buy,” with an average price target of $986, suggesting further upside from recent trading levels. Seagate performance versus AI infrastructure stocks
• Positive Sentiment: The bullish case is supported by Seagate’s latest quarterly results: earnings of $5.71 per share exceeded estimates of $5.10, revenue rose 48.5% year over year to $3.63 billion, and fiscal first-quarter 2027 EPS guidance was set at $7.10 to $7.50. Analysts have also raised several price targets following the report. Seagate earnings report
• Positive Sentiment: Seagate completed the retirement and exchange of approximately $150.7 million of 2028 notes. The transaction reduces upcoming debt obligations, although it also used about $151 million in cash and issued 1.65 million ordinary shares. Seagate 2028 notes retirement
• Neutral Sentiment: Seagate’s quarterly dividend remains $0.74 per share, or $2.96 annually, with a yield of approximately 0.4%. The payout provides modest shareholder income but is unlikely to be a major near-term catalyst. Seagate dividend and stock information
• Negative Sentiment: CEO William Mosley, CFO Gianluca Romano and EVPs John Morris and Ban Teh collectively sold large amounts of STX stock. The filings indicate that many transactions were conducted under pre-arranged Rule 10b5-1 plans or to cover tax withholding on vested equity awards, which reduces their value as a bearish signal but still created short-term selling pressure. Seagate insider sale filing

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Citigroup lifted their price target on shares of Seagate Technology from $1,240.00 to $1,300.00 and gave the company a “buy” rating in a research report on Wednesday, July 29th. Rosenblatt Securities lifted their price objective on Seagate Technology from $1,300.00 to $1,400.00 and gave the company a “buy” rating in a research report on Wednesday, July 29th. Barclays raised their target price on shares of Seagate Technology from $1,000.00 to $1,250.00 and gave the company an “overweight” rating in a research note on Thursday, July 30th. TD Cowen increased their price target on Seagate Technology from $850.00 to $1,000.00 and gave the stock a “buy” rating in a report on Wednesday, July 29th. Finally, Morgan Stanley lifted their price objective on shares of Seagate Technology from $1,035.00 to $1,187.00 and gave the company an “overweight” rating in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $986.00.

Seagate Technology Trading Up 2.5%

The company’s 50-day moving average price is $844.88 and its 200 day moving average price is $735.67. The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.17 and a current ratio of 1.67. The stock has a market cap of $182.58 billion, a PE ratio of 57.85 and a beta of 2.06.

Seagate Technology (NASDAQ:STX) last issued its quarterly earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.10 by $0.61. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. The company had revenue of $3.63 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same period in the prior year, the firm earned $2.59 earnings per share. The business’s revenue for the quarter was up 48.5% compared to the same quarter last year. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. On average, sell-side analysts forecast that Seagate Technology Holdings PLC will post 35.7 EPS for the current fiscal year.

Seagate Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th will be paid a dividend of $0.74 per share. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, September 24th. Seagate Technology’s payout ratio is 21.33%.

Insider Buying and Selling at Seagate Technology

In related news, CFO Gianluca Romano sold 49,984 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $772.16, for a total transaction of $38,595,645.44. Following the sale, the chief financial officer owned 70,756 shares of the company’s stock, valued at $54,634,952.96. This trade represents a 41.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William D. Mosley sold 97,889 shares of the company’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $772.14, for a total value of $75,584,012.46. Following the completion of the transaction, the chief executive officer owned 378,108 shares of the company’s stock, valued at $291,952,311.12. The trade was a 20.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 457,605 shares of company stock valued at $370,403,041 over the last 90 days. 0.51% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Seagate Technology

Institutional investors and hedge funds have recently bought and sold shares of the business. Wellington Management Group LLP lifted its holdings in Seagate Technology by 2,655.9% during the 2nd quarter. Wellington Management Group LLP now owns 2,414,136 shares of the data storage provider’s stock valued at $2,329,641,000 after purchasing an additional 2,326,538 shares during the last quarter. Norges Bank acquired a new stake in Seagate Technology during the 4th quarter worth approximately $498,363,000. Janus Henderson Group PLC raised its holdings in Seagate Technology by 3,872.1% during the 1st quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider’s stock worth $378,985,000 after purchasing an additional 943,170 shares during the last quarter. Deutsche Bank AG boosted its stake in Seagate Technology by 102.0% during the fourth quarter. Deutsche Bank AG now owns 1,599,962 shares of the data storage provider’s stock worth $440,614,000 after acquiring an additional 807,962 shares in the last quarter. Finally, National Pension Service lifted its stake in shares of Seagate Technology by 298.7% in the fourth quarter. National Pension Service now owns 997,223 shares of the data storage provider’s stock valued at $274,625,000 after buying an additional 747,102 shares in the last quarter. 92.87% of the stock is owned by institutional investors and hedge funds.

About Seagate Technology

Seagate Technology Holdings plc is a data storage technology company that develops and manufactures mass-capacity storage solutions for businesses and consumers. Its product portfolio is centered on hard disk drives (HDDs), which are used in cloud data centers, enterprise systems, network-attached storage, video and imaging applications, and personal computing.

The company also offers solid-state drives (SSDs), external storage products, storage systems, and related data-management and recovery services.