Seagate Technology (NASDAQ:STX) Stock Jumps 3.7% Following Better-Than-Expected Earnings

Key Points

• Seagate shares rose 3.7% after the company reported quarterly EPS of $7.68, beating the $7.45 consensus, while revenue of $4.23 billion also exceeded estimates.
• Strong HDD demand, higher pricing and adoption of Mozaic technology are driving expectations for continued growth, with expanded validation of Seagate’s high-capacity drives supporting potential cloud and AI infrastructure deployments.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus and average price target of $951.92, though some firms have lowered targets and elevated valuation and heavy insider selling could add downside risk.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s stock price was up 3.7% during mid-day trading on Tuesday following a better than expected earnings announcement. The company traded as high as $687.05 and last traded at $667.85. 8,107,242 shares changed hands during trading, an increase of 83% from the average daily volume of 4,421,041 shares. The stock had previously closed at $644.21.

The data storage provider reported $7.68 EPS for the quarter, beating analysts' consensus estimates of $7.45 by $0.23. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. The firm had revenue of $4.23 billion during the quarter, compared to the consensus estimate of $4.15 billion.

Seagate Technology News Summary

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

• Positive Sentiment: Analysts expect Seagate’s quarterly revenue to increase roughly 58%, with potential upside to earnings guidance of $7.10–$7.50 per share. Strong HDD demand, higher pricing and growing adoption of the company’s Mozaic technology are supporting expectations for a beat. Seagate Technology Q1 preview: Analysts project earnings beat amid strong HDD demand
• Positive Sentiment: Seagate announced that its HAMR and SMR high-capacity drives achieved expanded interoperability with Broadcom systems and were validated at Microsoft Azure. The milestone could accelerate deployment by hyperscale cloud providers and strengthen Seagate’s position in AI infrastructure. Seagate Simplifies High-Capacity Storage Scaling for AI and Cloud Infrastructure
• Positive Sentiment: Bank of America and Morgan Stanley raised their price targets ahead of earnings, while Rosenblatt sees near-term profit upside as Seagate’s advanced drives scale. Industry commentary also points to tight memory and storage supply through 2028 because of AI demand. STX rises premarket ahead of Seagate’s Q1 report
• Neutral Sentiment: The earnings release is the immediate event risk. With expectations already elevated, investors will focus on data-center demand, pricing, Mozaic production, contract visibility and management’s outlook for coming quarters. Seagate has reportedly secured demand through 2028, but the stock’s sharp prior pullback highlights continued volatility. Seagate stock rises ahead of earnings as AI storage demand grows
• Negative Sentiment: Rosenblatt and Cantor Fitzgerald reduced their price targets, although both retain constructive views. Cantor still rates STX “overweight” with a $1,000 target, while the cuts reinforce concerns that the stock’s valuation and earnings expectations leave limited room for disappointment.
• Negative Sentiment: EVP James Lee sold 547 shares worth approximately $351,000, reducing his direct holdings by 34.5%. The sale was disclosed in an SEC filing and may weigh modestly on sentiment, though it is small relative to Seagate’s market value. Seagate Technology EVP sells stock

Analyst Upgrades and Downgrades

STX has been the topic of several recent research reports. Weiss Ratings upgraded Seagate Technology from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, October 16th. Zacks Research lowered shares of Seagate Technology from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. Cantor Fitzgerald cut their price objective on shares of Seagate Technology from $1,300.00 to $1,000.00 and set an "overweight" rating on the stock in a research report on Monday. Wedbush increased their target price on shares of Seagate Technology from $825.00 to $1,000.00 and gave the company an "outperform" rating in a research note on Wednesday, July 29th. Finally, Sanford C. Bernstein restated an "outperform" rating and issued a $1,350.00 target price on shares of Seagate Technology in a report on Wednesday, July 29th. Twenty-two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $951.92.

Insider Transactions at Seagate Technology

In other news, EVP John Morris sold 9,354 shares of the stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $877.91, for a total transaction of $8,211,970.14. Following the transaction, the executive vice president directly owned 22,693 shares in the company, valued at approximately $19,922,411.63. This trade represents a 29.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Teh sold 52,730 shares of Seagate Technology stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $782.08, for a total transaction of $41,239,078.40. Following the transaction, the executive vice president directly owned 5,810 shares in the company, valued at approximately $4,543,884.80. The trade was a 90.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 467,506 shares of company stock worth $379,191,992. Insiders own 0.51% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in STX. NewEdge Advisors LLC raised its stake in Seagate Technology by 85.9% in the first quarter. NewEdge Advisors LLC now owns 22,046 shares of the data storage provider's stock valued at $8,637,000 after buying an additional 10,190 shares during the last quarter. UNICOM Systems Inc. boosted its holdings in Seagate Technology by 18.2% in the second quarter. UNICOM Systems Inc. now owns 43,500 shares of the data storage provider's stock worth $41,978,000 after acquiring an additional 6,700 shares in the last quarter. USA Financial Formulas acquired a new position in shares of Seagate Technology during the first quarter valued at about $1,328,000. Financial Insights Inc. acquired a new position in shares of Seagate Technology during the second quarter valued at about $706,000. Finally, Silverleafe Capital Partners LLC purchased a new position in shares of Seagate Technology in the 3rd quarter valued at approximately $820,000. 92.87% of the stock is currently owned by hedge funds and other institutional investors.

Seagate Technology Stock Up 3.7%

The stock has a market capitalization of $151.86 billion, a PE ratio of 48.12 and a beta of 2.06. The company has a current ratio of 1.67, a quick ratio of 1.17 and a debt-to-equity ratio of 1.56. The company's 50-day moving average is $816.49 and its 200 day moving average is $680.95.

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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