Seagate Technology (NASDAQ:STX) Stock Price Down 1.9% - Time to Sell?

Key Points

• Seagate shares fell 1.9% to $905.92 in midday trading, with volume about 30% below the average. Despite the decline, analysts maintain a “Moderate Buy” consensus and an average price target of $986, with several firms recently raising their targets.
• The company reported strong quarterly results, posting $5.71 in EPS versus the $5.10 consensus estimate and revenue of $3.63 billion, up 48.5% year over year. Seagate guided for fiscal Q1 2027 EPS of $7.10–$7.50.
• Seagate declared a quarterly dividend of $0.74, equal to a 0.3% annualized yield. Insiders sold roughly $378.6 million of stock over the past three months, though the reported sales were attributed to tax withholding obligations tied to vested equity awards.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) dropped 1.9% during trading on Thursday. The stock traded as low as $898.80 and last traded at $905.92. Approximately 3,059,817 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 4,341,840 shares. The stock had previously closed at $923.86.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. Wedbush upped their price objective on shares of Seagate Technology from $825.00 to $1,000.00 and gave the stock an "outperform" rating in a report on Wednesday, July 29th. Barclays raised their target price on shares of Seagate Technology from $1,000.00 to $1,250.00 and gave the stock an "overweight" rating in a report on Thursday, July 30th. JPMorgan Chase & Co. upped their target price on shares of Seagate Technology from $1,095.00 to $1,240.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. China Renaissance increased their target price on shares of Seagate Technology from $802.00 to $983.00 in a report on Friday, June 12th. Finally, Rosenblatt Securities increased their target price on Seagate Technology from $1,300.00 to $1,400.00 and gave the stock a "buy" rating in a research report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Seagate Technology has a consensus rating of "Moderate Buy" and an average target price of $986.00.

Seagate Technology Price Performance

The firm has a 50 day simple moving average of $845.18 and a 200-day simple moving average of $753.25. 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 company has a market cap of $206.00 billion, a PE ratio of 65.27 and a beta of 2.06.

Seagate Technology (NASDAQ:STX - Get Free Report) last issued its earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.10 by $0.61. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%.The company had revenue of $3.63 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same quarter last year, the business posted $2.59 EPS. The firm's quarterly revenue 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, 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 business also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th will be issued a $0.74 dividend. This represents a $2.96 annualized dividend and a yield of 0.3%. The ex-dividend date is Thursday, September 24th. Seagate Technology's dividend payout ratio is presently 21.33%.

Insiders Place Their Bets

In related news, CFO Gianluca Romano sold 49,984 shares of the business's stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $772.16, for a total transaction of $38,595,645.44. Following the completion of the transaction, the chief financial officer owned 70,756 shares in the company, valued at approximately $54,634,952.96. The trade was a 41.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through 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 firm's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $772.14, for a total value of $75,584,012.46. Following the transaction, the chief executive officer owned 378,108 shares in the company, valued at $291,952,311.12. This represents a 20.57% decrease in their position. 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 466,959 shares of company stock worth $378,615,011 in the last three months. 0.51% of the stock is owned by insiders.

Hedge Funds Weigh In On Seagate Technology

Institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP raised its stake in Seagate Technology by 2,655.9% during the second quarter. Wellington Management Group LLP now owns 2,414,136 shares of the data storage provider's stock worth $2,329,641,000 after purchasing an additional 2,326,538 shares during the period. Geode Capital Management LLC grew its stake in Seagate Technology by 5.0% in the fourth quarter. Geode Capital Management LLC now owns 4,896,815 shares of the data storage provider's stock worth $1,343,683,000 after purchasing an additional 234,436 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Seagate Technology by 8.3% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,193,063 shares of the data storage provider's stock worth $879,338,000 after purchasing an additional 243,551 shares during the period. National Pension Service grew its position in shares of Seagate Technology by 0.8% during the 2nd quarter. National Pension Service now owns 834,705 shares of the data storage provider's stock valued at $805,490,000 after buying an additional 6,944 shares during the last quarter. Finally, Norges Bank bought a new stake in Seagate Technology in the fourth quarter valued at $498,363,000. 92.87% of the stock is owned by institutional investors and hedge funds.

Seagate Technology Company Profile

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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