Seagate Technology (NASDAQ:STX) Shares Cross Above 200-Day Moving Average Following Analyst Downgrade

Key Points

• Seagate shares crossed above their 200-day moving average, reaching $698.94 and last trading near $697.97 after Bank of America raised its price target to $1,200 while maintaining a buy rating.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating from 28 analysts and an average price target of $971.64, although some firms have recently reduced targets amid concerns about slowing exabyte growth and limited room for margin expansion.
• Seagate reported strong quarterly results, including 61% year-over-year revenue growth to $4.23 billion and adjusted EPS of $7.68, while raising its quarterly dividend 2.7% to $0.76 per share. Insider selling has been substantial, with executives selling about 467,506 shares worth $379.2 million over the past 90 days, primarily to cover tax obligations.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s share price crossed above its 200-day moving average during trading on Wednesday after Bank of America raised their price target on the stock from $1,150.00 to $1,200.00. The stock has a 200-day moving average of $684.81 and traded as high as $698.94. Bank of America currently has a buy rating on the stock. Seagate Technology shares last traded at $697.97, with a volume of 10,799,121 shares changing hands.

Other equities research analysts have also recently issued reports about the stock. Wells Fargo & Company decreased their price objective on shares of Seagate Technology from $1,180.00 to $865.00 and set an "overweight" rating for the company in a report on Friday, October 16th. Morgan Stanley raised their target price on Seagate Technology from $1,187.00 to $1,200.00 and gave the company an "overweight" rating in a report on Tuesday, October 20th. Argus boosted their price target on Seagate Technology from $750.00 to $900.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. JPMorgan Chase & Co. upped their price target on Seagate Technology from $1,095.00 to $1,240.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 29th. Finally, Rosenblatt Securities increased their price objective 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. Twenty-two analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $971.64.

Insider Activity

In other Seagate Technology news, EVP John Morris sold 15,466 shares of the business's stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $772.15, for a total transaction of $11,942,071.90. Following the completion of the transaction, the executive vice president owned 31,132 shares of the company's stock, valued at $24,038,573.80. The trade was a 33.19% decrease in their position. 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 Mosley sold 97,889 shares of the stock in a transaction that occurred 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 sale, the chief executive officer owned 378,108 shares of the company's stock, valued at approximately $291,952,311.12. The trade was a 20.57% decrease in their position. 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 467,506 shares of company stock valued at $379,191,992. 0.51% of the stock is owned by corporate insiders.

Trending Headlines about Seagate Technology

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

• Positive Sentiment: Seagate reported fiscal Q1 revenue of $4.23 billion, up 61% year over year, and adjusted earnings of $7.68 per share, exceeding Wall Street estimates. Data-center revenue rose 63%, while strong pricing, AI-related demand and HAMR adoption drove record profitability and cash flow. Seagate Technology Reports Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: Management projected approximately $4.8 billion of revenue and $9.20 in non-GAAP EPS for the December quarter, above consensus expectations. Nearline capacity is largely committed under supply agreements through 2028, with some commentary pointing to commitments extending through 2030. Seagate expects December-quarter revenue and EPS
• Positive Sentiment: Seagate raised its quarterly dividend 2.7% to $0.76 per share and continues to benefit from AI infrastructure demand. Several analysts still see substantial upside, including buy or overweight ratings from Citigroup, Wells Fargo, TD Cowen and Morgan Stanley. Seagate Q1 earnings call highlights
• Neutral Sentiment: Analysts broadly remain constructive on Seagate Technology, but multiple firms lowered their price targets after the results. Citigroup reduced its target to $1,050, Wells Fargo to $820 and TD Cowen to $900; Wedbush maintained an outperform rating with a $1,000 target.
• Negative Sentiment: The market appears concerned that exabyte shipment growth and future margin expansion may slow, particularly after STX’s sharp prior rally. The stock’s high valuation left little room for disappointment, prompting profit-taking and a downgrade from Summit Insights to “hold”; Susquehanna also cut its rating to “neutral.” Seagate pullback on slower exabyte growth

Institutional Investors Weigh In On Seagate Technology

Hedge funds and other institutional investors have recently modified their holdings of the stock. Retirement Wealth Solutions LLC grew its position in Seagate Technology by 70.6% in the 2nd quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider's stock worth $28,000 after purchasing an additional 12 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC raised its position in shares of Seagate Technology by 23.1% during 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 last quarter. WealthCollab LLC raised its position in shares of Seagate Technology by 27.4% during the first quarter. WealthCollab LLC now owns 93 shares of the data storage provider's stock valued at $36,000 after buying an additional 20 shares during the last quarter. McMillan Office Inc. bought a new stake in shares of Seagate Technology in the first quarter valued at about $39,000. Finally, Catalyst Capital Advisors LLC bought a new stake in shares of Seagate Technology in the first quarter valued at about $39,000. Institutional investors and hedge funds own 92.87% of the company's stock.

Seagate Technology Trading Up 4.5%

The firm has a market cap of $158.71 billion, a P/E ratio of 50.29 and a beta of 2.06. The company's 50 day moving average is $805.84 and its two-hundred day moving average is $684.81. 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 posted its quarterly earnings results on Tuesday, October 27th. The data storage provider reported $7.68 EPS for the quarter, beating the consensus estimate of $7.45 by $0.23. The firm had revenue of $4.23 billion during the quarter, compared to analysts' expectations of $4.15 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%. The company's revenue for the quarter was up 61.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.61 EPS. On average, sell-side analysts predict that Seagate Technology Holdings PLC will post 35.79 earnings per share for the current year.

Seagate Technology Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Wednesday, December 23rd will be given a dividend of $0.76 per share. This is an increase from Seagate Technology's previous quarterly dividend of $0.74. The ex-dividend date is Wednesday, December 23rd. This represents a $3.04 dividend on an annualized basis and a dividend yield of 0.4%. Seagate Technology's dividend payout ratio is 21.33%.

Seagate Technology Company Profile

Seagate Technology Holdings plc NASDAQ: STX is a data storage company that develops and manufactures mass-capacity storage products and solutions. Its portfolio is centered on hard disk drives (HDDs) used in cloud data centers, enterprise systems, network-attached storage, video and imaging applications, and personal computers.

The company also provides storage-related services and solutions designed to help organizations store, manage, protect, and access large volumes of digital information.

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