Seagate Technology (NASDAQ:STX) Shares Up 1.1% - Time to Buy?

Key Points

• Seagate shares rose 1.1% to $783, while trading volume was 11% below average. The stock remains highly valued, with a P/E ratio of 56.41 and a market capitalization of approximately $178 billion.
• AI and data-center demand are the main growth drivers, supported by disciplined capacity additions that could bolster pricing and margins. However, potential competition from TDK and Toshiba, along with broader weakness in the memory trade, creates supply and sentiment risks.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $986. Seagate recently beat earnings and revenue expectations, but investors are awaiting further results to determine whether AI demand can justify the stock’s elevated valuation.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s share price shot up 1.1% during trading on Friday. The company traded as high as $789.59 and last traded at $783.00. 3,913,994 shares traded hands during mid-day trading, a decline of 11% from the average session volume of 4,376,333 shares. The stock had previously closed at $774.83.

Key Seagate Technology News

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

• Positive Sentiment: Seagate’s AI-driven growth remains the primary bullish argument. Demand from data-center and AI infrastructure buildouts is supporting expectations for strong hard-drive sales, though investors are questioning whether that growth justifies the stock’s elevated valuation. Can Seagate’s AI-Driven Growth Justify Its Sky-High Expectations?
• Positive Sentiment: Commentary from Jim Cramer highlighted Seagate and Western Digital’s restrained capacity additions amid surging AI storage demand, suggesting disciplined supply could support pricing and margins. Seagate and Western Digital Capacity Strategy
• Neutral Sentiment: Seagate generated $3.1 billion in fiscal 2026 free cash flow, comfortably covering its $0.74 quarterly dividend. However, the annualized $2.96 payout represents only a modest yield at the recent share price, limiting the dividend’s appeal as an income catalyst. Seagate’s Dividend Has a Large Cash Cushion
• Neutral Sentiment: Investors are looking ahead to Seagate’s next quarterly earnings report for evidence that AI demand, revenue growth, and management guidance can support the stock’s high earnings expectations. What to Expect From Seagate Technology’s Next Quarterly Earnings Report
• Negative Sentiment: Reports involving a TDK unit bid and Toshiba’s expansion of AI hard-drive capacity raised concerns about additional competition and future industry supply, contributing to a sharp sell-off in STX. Seagate Down After TDK and Toshiba News
• Negative Sentiment: Disappointing preliminary results from Samsung cooled the broader memory and AI trade, creating negative sentiment for storage-related stocks even though Seagate’s business is focused on hard drives. The Memory Trade Cools After Samsung’s Results

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on STX. Argus raised their target price on Seagate Technology from $750.00 to $900.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. China Renaissance increased their price objective on shares of Seagate Technology from $802.00 to $983.00 in a report on Friday, June 12th. Wedbush raised their price objective on shares of Seagate Technology from $825.00 to $1,000.00 and gave the company an "outperform" rating in a research report on Wednesday, July 29th. Rosenblatt Securities boosted their target price on shares of Seagate Technology from $1,300.00 to $1,400.00 and gave the stock a "buy" rating in a research note on Wednesday, July 29th. Finally, Wells Fargo & Company upped their target price on shares of Seagate Technology from $1,100.00 to $1,180.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 29th. Twenty-two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $986.00.

Seagate Technology Stock Performance

The firm has a fifty day moving average of $856.56 and a 200-day moving average of $790.73. 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 firm has a market cap of $178.05 billion, a P/E ratio of 56.41 and a beta of 2.06.

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

Seagate Technology Dividend Announcement

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

Insider Buying and Selling at Seagate Technology

In other Seagate Technology news, CEO William D. Mosley sold 97,889 shares of Seagate Technology stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $772.14, for a total transaction of $75,584,012.46. Following the completion of 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP John Morris sold 15,466 shares of the company'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 sale, 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 disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 466,959 shares of company stock valued at $378,840,741 in the last three months. Insiders own 0.51% of the company's stock.

Institutional Investors Weigh In On Seagate Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in STX. Wellington Management Group LLP increased its position in shares of Seagate Technology by 2,655.9% in 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 buying an additional 2,326,538 shares in the last quarter. Janus Henderson Group PLC lifted its holdings in Seagate Technology by 3,872.1% during the first quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider's stock worth $378,985,000 after acquiring an additional 943,170 shares in the last quarter. Deutsche Bank AG grew its stake in Seagate Technology by 102.0% in the fourth quarter. Deutsche Bank AG now owns 1,599,962 shares of the data storage provider's stock valued at $440,614,000 after acquiring an additional 807,962 shares during the period. Amanah Holdings Trust bought a new stake in shares of Seagate Technology in the fourth quarter worth about $79,801,000. Finally, Swedbank AB increased its holdings in shares of Seagate Technology by 67.6% in the first quarter. Swedbank AB now owns 709,160 shares of the data storage provider's stock worth $277,821,000 after acquiring an additional 285,949 shares in the last quarter. Institutional investors own 92.87% of the company's stock.

About Seagate Technology

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.

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