Seagate Technology (NASDAQ:STX) Shares Up 3.4% - Here's Why

Key Points

• Seagate shares rose 3.4% to approximately $821.67, supported by strong quarterly results and continued investor interest in data-storage demand from cloud computing, artificial intelligence and data centers.
• The company reported EPS of $5.71 on $3.63 billion in revenue, beating estimates and marking 48.5% year-over-year revenue growth. Fiscal Q1 2027 EPS guidance of $7.10–$7.50 further reinforced the bullish outlook.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $986, although elevated valuation, high volatility and roughly $159 million in recent insider selling remain potential risks.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) shares rose 3.4% on Tuesday . The company traded as high as $826.00 and last traded at $821.67. Approximately 2,553,692 shares traded hands during mid-day trading, a decline of 42% from the average daily volume of 4,415,587 shares. The stock had previously closed at $794.65.

More Seagate Technology News

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

• Positive Sentiment: Seagate was highlighted among three S&P 500 stocks suited to long-term investors, reflecting its established position in data storage and potential to benefit from continued growth in cloud computing, artificial intelligence and data-center demand. 3 S&P 500 Stocks for Long-Term Investors
• Positive Sentiment: Brokerages maintain an overall “Moderate Buy” rating for STX, with a consensus price target of $986. Recent firms including Barclays, Wells Fargo, Bank of America and Cantor Fitzgerald raised or reiterated bullish price targets ranging from $1,150 to $1,300, signaling confidence in Seagate’s earnings outlook. Seagate Technology Receives Moderate Buy Recommendation
• Positive Sentiment: The company’s latest quarterly results were strong: earnings per share of $5.71 exceeded estimates by $0.61, revenue reached $3.63 billion, and sales increased 48.5% year over year. Management’s fiscal first-quarter 2027 EPS guidance of $7.10–$7.50 also supports the bullish case.
• Neutral Sentiment: Seagate declared a quarterly dividend of $0.74 per share, equivalent to a $2.96 annualized payout and a yield of approximately 0.4%. The dividend provides modest income but is unlikely to be a major near-term trading catalyst.
• Negative Sentiment: Shares declined amid broad technology-sector weakness. With a beta of 2.06 and an elevated valuation, STX may experience amplified moves when investors reduce exposure to growth and semiconductor-related stocks. Seagate Technology Slides Amid Broader Tech Sector Weakness
• Negative Sentiment: Several executives, including the CEO, CFO and multiple EVPs, sold approximately $38 million of shares around $836–$853. Many sales were made under pre-arranged Rule 10b5-1 plans, limiting their value as a discretionary warning signal, but the concentration of insider selling may still weigh on investor sentiment.

Wall Street Analyst Weigh In

STX has been the subject of several analyst reports. Wedbush raised their price target on Seagate Technology from $825.00 to $1,000.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. Susquehanna increased their price objective on shares of Seagate Technology from $775.00 to $875.00 and gave the company a "neutral" rating in a research report on Wednesday, July 29th. Melius Research started 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 objective for the company. JPMorgan Chase & Co. upped their price objective on Seagate Technology from $1,095.00 to $1,240.00 and gave the company an "overweight" rating in a research report on Wednesday, July 29th. Finally, China Renaissance increased their target price on Seagate Technology from $802.00 to $983.00 in a research note on Friday, June 12th. 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 stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $986.00.

Seagate Technology Stock Up 3.4%

The firm has a market capitalization of $186.23 billion, a PE ratio of 59.20 and a beta of 2.06. The company has a fifty day moving average price of $888.74 and a 200-day moving average price of $685.82. The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.17 and a current ratio of 1.67.

Seagate Technology (NASDAQ:STX - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share 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 company had revenue of $3.63 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same period in the prior year, the company posted $2.59 EPS. The firm's revenue for the quarter was up 48.5% on a year-over-year basis. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. As a group, analysts expect that Seagate Technology Holdings PLC will post 34.42 earnings per share for the current year.

Seagate Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th will be given a $0.74 dividend. This represents a $2.96 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, September 24th. Seagate Technology's dividend payout ratio is presently 21.33%.

Insider Activity at Seagate Technology

In other Seagate Technology news, CFO Gianluca Romano sold 9,076 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $849.35, for a total value of $7,708,700.60. Following the completion of the sale, the chief financial officer directly owned 22,997 shares in the company, valued at approximately $19,532,501.95. This trade represents a 28.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP James Ci Lee sold 3,939 shares of the business's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $849.35, for a total value of $3,345,589.65. Following the sale, the executive vice president owned 1,191 shares in the company, valued at $1,011,575.85. The trade was a 76.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 184,752 shares of company stock valued at $159,470,949 over the last 90 days. Insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Rakuten Securities Inc. increased its position in shares of Seagate Technology by 884.2% in the 2nd quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider's stock valued at $27,000 after acquiring an additional 168 shares during the period. Concord Wealth Partners acquired a new stake in Seagate Technology during the 4th quarter worth about $28,000. Retirement Wealth Solutions LLC grew its stake in Seagate Technology by 70.6% during the 2nd 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 grew its stake in Seagate Technology by 23.1% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider's stock valued at $31,000 after purchasing an additional 15 shares during the last quarter. Finally, Quarry LP acquired a new position in shares of Seagate Technology in the fourth quarter valued at about $31,000. Institutional investors and hedge funds own 92.87% of the company's stock.

About Seagate Technology

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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