Seagate Technology (NASDAQ:STX) Stock Price Down 4.1% – Here’s Why

Seagate Technology Holdings PLC (NASDAQ:STX) fell 4.1% on Thursday. The company traded as low as $770.06 and last traded at $774.83. Approximately 4,819,477 shares traded hands during mid-day trading, an increase of 10% from the average session volume of 4,377,359 shares. The stock had previously closed at $807.57.

Seagate Technology News Summary

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

• Positive Sentiment: AI workloads continue to generate substantial demand for low-cost, high-capacity HDD storage. Analysts view Seagate and Western Digital as potential beneficiaries of an HDD upcycle, although supply risks remain. Seagate vs. Western Digital: Which HDD Stock Has More Room to Run?
• Positive Sentiment: Seagate recently reported stronger-than-expected quarterly results, with earnings and revenue exceeding estimates and revenue rising sharply year over year. The company also provided bullish near-term earnings guidance, supporting the long-term growth case.
• Positive Sentiment: Seagate paid its dividend to shareholders, reinforcing its appeal to income-oriented investors. However, the stock’s substantial appreciation changes the dividend-yield calculation for new buyers. HP, Merck, and Seagate Just Paid Their Shareholders

Wall Street Analyst Weigh In

Several research firms have recently commented on STX. Wedbush boosted their target price on shares of Seagate Technology from $825.00 to $1,000.00 and gave the stock an “outperform” rating in a report on Wednesday, July 29th. Argus increased their price objective on shares of Seagate Technology from $750.00 to $900.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Citigroup raised their price objective on 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. Fox Advisors cut Seagate Technology from an “overweight” rating to an “equal weight” rating in a report on Monday, June 22nd. Finally, Melius Research assumed coverage on Seagate Technology in a research note on Monday, June 29th. They set a “buy” rating and a $1,600.00 price target for the company. Twenty-two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $986.00.

Seagate Technology Price Performance

The company has a quick ratio of 1.17, a current ratio of 1.67 and a debt-to-equity ratio of 1.56. The company has a market capitalization of $176.19 billion, a PE ratio of 55.82 and a beta of 2.06. The firm’s 50 day simple moving average is $858.09 and its 200 day simple moving average is $788.17.

Seagate Technology (NASDAQ:STX) last released its quarterly earnings results on Tuesday, July 28th. The data storage provider reported $5.71 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 firm had revenue of $3.63 billion during the quarter, compared to analysts’ expectations of $3.50 billion. During the same period in the previous year, the company earned $2.59 EPS. The firm’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. As a group, research analysts anticipate that Seagate Technology Holdings PLC will post 35.7 EPS for the current fiscal year.

Seagate Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 7th. Investors of record on Thursday, September 24th were paid a $0.74 dividend. This represents a $2.96 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 24th. Seagate Technology’s dividend payout ratio (DPR) is currently 21.33%.

Insider Activity at Seagate Technology

In other Seagate Technology news, CEO William D. Mosley sold 11,002 shares of the company’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $935.60, for a total value of $10,293,471.20. Following the transaction, the chief executive officer directly owned 362,108 shares in the company, valued at $338,788,244.80. This represents a 2.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 49,984 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 70,756 shares in the company, valued at approximately $54,634,952.96. This trade represents a 41.40% 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. Over the last 90 days, insiders have sold 466,959 shares of company stock worth $378,840,741. Corporate insiders own 0.51% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of STX. Retirement Wealth Solutions LLC raised its holdings in shares of Seagate Technology by 70.6% in the second quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider’s stock valued at $28,000 after acquiring an additional 12 shares in the last quarter. Jones Financial Companies Lllp purchased a new position in Seagate Technology during the 2nd quarter valued at about $39,000. Trust Co. of Vermont bought a new stake in shares of Seagate Technology in the 2nd quarter valued at about $54,000. Triumph Capital Management lifted its position in shares of Seagate Technology by 93.5% in the 2nd quarter. Triumph Capital Management now owns 60 shares of the data storage provider’s stock worth $58,000 after purchasing an additional 29 shares during the period. Finally, Cornerstone Financial Management LLC boosted its stake in shares of Seagate Technology by 109.7% during the second quarter. Cornerstone Financial Management LLC now owns 65 shares of the data storage provider’s stock valued at $63,000 after purchasing an additional 34 shares in the last quarter. 92.87% of the stock is currently owned by hedge funds and other institutional investors.

Seagate Technology Company Profile

Seagate Technology Holdings plc is a data storage technology company that designs, manufactures and supplies solutions for storing, managing and accessing digital information. Its product portfolio is centered on hard disk drives (HDDs), including high-capacity drives used in cloud data centers, enterprise environments, surveillance systems, network-attached storage and personal computing.

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