Seagate Technology Holdings PLC (NASDAQ:STX) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts remain bullish on Seagate: Twenty-two of 27 analysts rate the stock a “buy,” one rates it a “strong buy,” and the average 12-month price target is $986.
• Strong operating results are supporting the outlook: Quarterly revenue rose 48.5% year over year to $3.63 billion, while EPS of $5.71 exceeded estimates; fiscal Q1 2027 guidance calls for EPS of $7.10–$7.50.
• Valuation and insider selling are key risks: The stock has surged roughly 300% over the past year and trades at a high earnings multiple, while insiders sold substantial shares, including sales linked to tax withholding and a Rule 10b5-1 plan.

Shares of Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) have earned an average rating of "Moderate Buy" from the twenty-seven brokerages that are covering the company, Marketbeat Ratings reports. Four research analysts have rated the stock with a hold recommendation, twenty-two have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $986.00.

A number of equities research analysts recently weighed in on the company. Mizuho raised their price target on Seagate Technology from $875.00 to $1,090.00 and gave the company an "outperform" rating in a report on Monday, June 8th. TD Cowen increased their price objective on Seagate Technology from $850.00 to $1,000.00 and gave the company a "buy" rating in a research report on Wednesday, July 29th. Weiss Ratings reissued a "buy (b)" rating on shares of Seagate Technology in a research note on Wednesday, June 24th. Melius Research started coverage on 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. Finally, Susquehanna raised their price target on Seagate Technology from $775.00 to $875.00 and gave the company a "neutral" rating in a report on Wednesday, July 29th.

Seagate Technology News Summary

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

• Positive Sentiment: Investor enthusiasm is being supported by Seagate’s strong operating momentum. The company recently reported quarterly revenue of $3.63 billion, up 48.5% year over year, while earnings of $5.71 per share exceeded the $5.10 consensus estimate. Management’s fiscal first-quarter 2027 EPS guidance of $7.10 to $7.50 further supports the bullish outlook. AI boom article
• Positive Sentiment: Seagate’s gross margin reached 52.7% last quarter, reflecting the company’s ability to raise prices amid tight storage supply and strong demand. Investors are watching whether pricing power and elevated margins can persist as data-center customers expand capacity. Gross margin article
• Positive Sentiment: Wall Street remains broadly optimistic, with analysts citing Seagate’s outperformance versus other AI-infrastructure stocks and maintaining favorable growth expectations. AI infrastructure comparison
• Neutral Sentiment: Seagate retired approximately $150.7 million of 2028 exchangeable notes using cash and about 1.65 million ordinary shares. The move reduces upcoming debt but involved share issuance, creating a modest dilution consideration. Debt retirement article
• Negative Sentiment: Valuation and insider selling remain risks. EVP John Morris sold roughly $11.9 million of stock, reducing his position by 33.19%; the filing said the transaction covered tax withholding tied to vested equity awards, limiting—but not eliminating—the bearish signal. After a roughly 300% one-year rally, investors may also question how much AI-driven growth is already priced in. Insider selling article

Insider Buying and Selling at Seagate Technology

In other news, EVP Ban Teh sold 52,730 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $782.08, for a total value of $41,239,078.40. Following the transaction, the executive vice president owned 5,810 shares of the company's stock, valued at $4,543,884.80. This represents a 90.08% decrease in their position. The transaction 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, EVP John Morris sold 15,466 shares of the firm's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $772.15, for a total value of $11,942,071.90. Following the completion of the transaction, the executive vice president owned 31,132 shares in the company, valued at $24,038,573.80. This represents a 33.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 457,605 shares of company stock worth $370,403,041 over the last quarter. Company insiders own 0.51% of the company's stock.

Hedge Funds Weigh In On Seagate Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Retirement Wealth Solutions LLC raised its position in shares of Seagate Technology by 70.6% in the 2nd 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 during the period. Jones Financial Companies Lllp bought a new stake in Seagate Technology in the second quarter valued at approximately $39,000. Trust Co. of Vermont acquired a new stake in Seagate Technology in the second quarter worth $54,000. Triumph Capital Management raised its holdings in Seagate Technology by 93.5% in the second 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 position 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 worth $63,000 after purchasing an additional 34 shares in the last quarter. Institutional investors own 92.87% of the company's stock.

Seagate Technology Stock Up 6.9%

STX opened at $858.79 on Friday. The firm has a market cap of $195.28 billion, a price-to-earnings ratio of 61.87 and a beta of 2.06. 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 firm's 50-day simple moving average is $842.11 and its 200-day simple moving average is $739.30. Seagate Technology has a twelve month low of $209.00 and a twelve month high of $1,145.00.

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

Seagate Technology Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th will be given a dividend of $0.74 per share. The ex-dividend date is Thursday, September 24th. This represents a $2.96 dividend on an annualized basis and a yield of 0.3%. Seagate Technology's dividend payout ratio is presently 21.33%.

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.

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