Seagate Technology (NASDAQ:STX) Stock Price Down 2.7% - Here's Why

Key Points

• Seagate shares fell 2.7% to $862.33 in Thursday trading, despite strong fundamentals and growth prospects. The decline may reflect profit-taking after the stock nearly quadrupled over the past year and reached a relatively high earnings multiple.
• Demand remains supported by AI infrastructure, cloud spending and mass-capacity storage, with HAMR and the Mozaic platform increasing drive capacity and efficiency. Seagate expects fiscal 2027 revenue growth to exceed fiscal 2026.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $986; recent targets range from $1,090 to $1,350. The company also reported quarterly revenue growth of 48.5% year over year and EPS of $5.71, beating estimates.

Shares of Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) were down 2.7% during trading on Thursday . The stock traded as low as $848.24 and last traded at $862.33. Approximately 3,056,401 shares changed hands during mid-day trading, a decline of 30% from the average daily volume of 4,341,430 shares. The stock had previously closed at $885.92.

Key Stories Impacting Seagate Technology

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

• Positive Sentiment: Seagate expects fiscal 2027 revenue growth to exceed fiscal 2026, supported by cloud spending, AI adoption and expanding demand for mass-capacity storage. The outlook suggests momentum may continue beyond the company’s recent earnings growth. Can Seagate Sustain Its Strong Revenue Growth in Fiscal 2027?
• Positive Sentiment: Seagate’s HAMR technology and Mozaic platform are increasing drive capacity, exabyte shipments and efficiency, positioning the company to benefit from customers’ need for higher-capacity data-center storage. Seagate's HAMR Bet is Paying Off
• Positive Sentiment: Commentary comparing Seagate with Vertiv identifies both as beneficiaries of AI infrastructure spending and highlights Seagate’s strong earnings performance. Reports that much of Seagate’s current production is already committed also point to robust near-term demand. The Two Most Compelling AI Infrastructure Plays Right Now
• Neutral Sentiment: Seagate completed the redemption of its exchangeable notes, an action that removes a financing obligation but does not materially change the company’s operating outlook. Seagate Completes Redemption of Exchangeable Notes
• Negative Sentiment: After roughly quadrupling over the past year and trading at a high earnings multiple, STX is vulnerable to profit-taking. Further upside depends on sustained AI demand, successful HAMR expansion and continued execution, leaving little room for disappointment. Price Prediction: Seagate Stock Will Hit $1000 on This Date

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on STX shares. JPMorgan Chase & Co. increased their target price on shares of Seagate Technology from $1,095.00 to $1,240.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 29th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $1,300.00 target price on shares of Seagate Technology in a research note on Wednesday, July 29th. Sanford C. Bernstein restated an "outperform" rating and set a $1,350.00 price target on shares of Seagate Technology in a research report on Wednesday, July 29th. Mizuho raised their price target on Seagate Technology from $875.00 to $1,090.00 and gave the company an "outperform" rating in a report on Monday, June 8th. Finally, Zacks Research raised Seagate Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 28th. One 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 currently has an average rating of "Moderate Buy" and a consensus target price of $986.00.

Seagate Technology Stock Performance

The stock has a 50-day moving average of $847.74 and a 200 day moving average of $721.54. The company has a debt-to-equity ratio of 1.56, a current ratio of 1.67 and a quick ratio of 1.17. The stock has a market capitalization of $195.45 billion, a price-to-earnings ratio of 62.13 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, beating the consensus estimate 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 quarter last year, the firm earned $2.59 EPS. The company'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. On average, analysts expect that Seagate Technology Holdings PLC will post 35.7 EPS for the current year.

Seagate Technology Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th will be paid a $0.74 dividend. This represents a $2.96 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Thursday, September 24th. Seagate Technology's dividend payout ratio is presently 21.33%.

Insider Buying and Selling at Seagate Technology

In other Seagate Technology news, CEO William D. Mosley sold 30,000 shares of Seagate Technology stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $816.28, for a total transaction of $24,488,400.00. Following the transaction, the chief executive officer directly owned 295,168 shares in the company, valued at approximately $240,939,735.04. The trade was a 9.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Teh sold 9,862 shares of the company's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $852.97, for a total transaction of $8,411,990.14. Following the completion of the transaction, the executive vice president owned 5,210 shares of the company's stock, valued at $4,443,973.70. This trade represents a 65.43% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 186,323 shares of company stock worth $157,393,279 in the last three months. 0.79% of the stock is owned by insiders.

Institutional Trading of Seagate Technology

Institutional investors have recently made changes to their positions in the business. Bouchey Financial Group Ltd. bought a new position in Seagate Technology in the second quarter valued at $377,000. Miramontes Capital LLC bought a new stake in Seagate Technology during the second quarter worth about $335,000. IPG Investment Advisors LLC raised its holdings in Seagate Technology by 16.0% during the second quarter. IPG Investment Advisors LLC now owns 1,032 shares of the data storage provider's stock worth $997,000 after acquiring an additional 142 shares in the last quarter. MCF Advisors LLC boosted its position in Seagate Technology by 97.1% during the second quarter. MCF Advisors LLC now owns 203 shares of the data storage provider's stock valued at $196,000 after purchasing an additional 100 shares during the last quarter. Finally, Lotus Asset Management LLC bought a new position in Seagate Technology in the second quarter valued at approximately $676,000. Institutional investors own 92.87% of the company's stock.

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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