Seagate Technology (NASDAQ:STX) Cut to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Seagate Technology from “strong buy” to “buy,” though broader analyst sentiment remains “Moderate Buy” with a consensus price target of $986.
• Seagate reported strong quarterly results, with revenue up 48.5% year over year to $3.63 billion and EPS of $5.71, beating estimates; fiscal Q1 2027 EPS guidance is $7.10–$7.50.
• Insiders have sold significant amounts of stock—191,765 shares worth about $161.9 million over the past three months—although the disclosed transactions were made under pre-arranged Rule 10b5-1 plans.

Seagate Technology (NASDAQ:STX - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Sunday, Wall Street Zen reports.

Several other brokerages have also commented on STX. Melius Research initiated coverage on shares of Seagate Technology in a research note on Monday, June 29th. They set a "buy" rating and a $1,600.00 price target on the stock. 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 research note on Wednesday, July 29th. Sanford C. Bernstein reiterated an "outperform" rating and issued a $1,350.00 price objective on shares of Seagate Technology in a report on Wednesday, July 29th. Wedbush increased their target price on shares of Seagate Technology from $825.00 to $1,000.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 29th. Finally, Rosenblatt Securities raised their target price on Seagate Technology from $1,300.00 to $1,400.00 and gave the company a "buy" 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.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $986.00.

Seagate Technology Stock Up 6.3%

Shares of Seagate Technology stock opened at $849.28 on Friday. The firm has a market cap of $192.49 billion, a price-to-earnings ratio of 61.19 and a beta of 2.06. The stock has a 50-day simple moving average of $851.92 and a 200-day simple moving average of $709.75. Seagate Technology has a 52-week low of $183.02 and a 52-week high of $1,145.00. The company has a debt-to-equity ratio of 1.56, a current ratio of 1.67 and a quick ratio of 1.17.

Seagate Technology (NASDAQ:STX - Get Free Report) last released its quarterly earnings data 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. The firm had revenue of $3.63 billion for the quarter, compared to the consensus estimate of $3.50 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%.The firm's revenue was up 48.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.59 earnings per share. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. On average, equities research analysts expect that Seagate Technology will post 35.7 earnings per share for the current fiscal year.

Insider Transactions at Seagate Technology

In related news, Director Yolanda Conyers sold 750 shares of the stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $815.11, for a total value of $611,332.50. Following the completion of the transaction, the director owned 3,351 shares of the company's stock, valued at $2,731,433.61. This represents a 18.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Teh sold 9,862 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $852.97, for a total value of $8,411,990.14. Following the transaction, the executive vice president owned 5,210 shares of the company's stock, valued at $4,443,973.70. This trade represents a 65.43% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 191,765 shares of company stock worth $161,865,249. 0.79% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Rakuten Securities Inc. lifted its position in Seagate Technology by 884.2% during the 2nd quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider's stock valued at $27,000 after purchasing an additional 168 shares during the period. Retirement Wealth Solutions LLC increased its holdings in 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 purchasing an additional 12 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC lifted its stake in Seagate Technology by 23.1% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider's stock valued at $31,000 after buying an additional 15 shares during the period. Quarry LP bought a new position in Seagate Technology during the fourth quarter worth about $31,000. Finally, WealthCollab LLC boosted its holdings in Seagate Technology by 27.4% during the first quarter. WealthCollab LLC now owns 93 shares of the data storage provider's stock worth $36,000 after buying an additional 20 shares during the last quarter. 92.87% of the stock is owned by institutional investors.

More Seagate Technology News

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

• Positive Sentiment: A rally that began in NAND memory broadened across the storage complex, with Seagate benefiting alongside SK Hynix and other memory-linked companies. The strength suggests investors are increasing exposure to companies positioned to supply AI data centers and expanding storage capacity. SK Hynix Surges 7% as Memory Bid Widens Beyond NAND; Seagate Rallies 5%
• Positive Sentiment: The broader AI trade remained a leading market theme, supporting semiconductor and storage shares. Seagate’s recent results reinforce the bullish case: quarterly revenue rose 48.5% year over year to $3.63 billion, while EPS of $5.71 exceeded estimates and management guided to $7.10–$7.50 in fiscal first-quarter 2027 EPS. Memory, Other AI-Related Stocks Lead the Market's Top Performers Friday
• Neutral Sentiment: Director Yolanda Lee Conyers sold 750 shares for approximately $611,000, but the transaction was executed under a pre-arranged Rule 10b5-1 plan. The sale is therefore a limited signal of changing insider sentiment.
• Negative Sentiment: CEO William Mosley separately sold 30,000 shares valued at approximately $24.5 million under a 10b5-1 plan. Although he retained a substantial stake, the sizable insider sale may weigh modestly on sentiment, particularly after STX’s strong run and elevated valuation.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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