Seagate Technology (NASDAQ:STX) Stock Price Down 3% Following Insider Selling

Key Points

• Seagate shares fell 3% to $805.55 after CEO William Mosley, CFO Gianluca Romano and EVP John Morris sold company stock worth a combined approximately $4.1 million.
• Despite the insider selling, Wall Street remains broadly bullish: analysts give Seagate a consensus “Moderate Buy” rating with an average price target of $986, while recent targets range as high as $1,350.
• Seagate reported strong quarterly results, with EPS of $5.71 and revenue of $3.63 billion, up 48.5% year over year. AI-related storage demand and 20% growth in Edge IoT revenue remain key growth catalysts, although valuation and competition pose risks.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) dropped 3% during mid-day trading on Monday following insider selling activity. The stock traded as low as $769.00 and last traded at $805.55. 4,115,708 shares were traded during trading, a decline of 5% from the average session volume of 4,338,342 shares. The stock had previously closed at $830.17.

Specifically, CEO William D. Mosley sold 2,849 shares of the business's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $862.13, for a total transaction of $2,456,208.37. Following the completion of the sale, the chief executive officer owned 296,449 shares in the company, valued at approximately $255,577,576.37. The trade was a 0.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Gianluca Romano sold 1,348 shares of the firm's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $862.13, for a total transaction of $1,162,151.24. Following the completion of the transaction, the chief financial officer owned 28,930 shares in the company, valued at $24,941,420.90. The trade was a 4.45% decrease in their position. The disclosure for this sale is available in the SEC filing. In other Seagate Technology news, EVP John Morris sold 572 shares of the business's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $862.13, for a total transaction of $493,138.36. Following the completion of the sale, the executive vice president directly owned 15,707 shares in the company, valued at $13,541,475.91. The trade was a 3.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.

Wall Street Analyst Weigh In

STX has been the topic of several recent research reports. Susquehanna lifted their target price on shares of Seagate Technology from $775.00 to $875.00 and gave the company a "neutral" rating in a report on Wednesday, July 29th. Mizuho increased 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. Weiss Ratings reissued a "buy (b)" rating on shares of Seagate Technology in a research report on Wednesday, June 24th. Argus upped their target price on Seagate Technology from $750.00 to $900.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Finally, Sanford C. Bernstein reiterated an "outperform" rating and set a $1,350.00 target price on shares of Seagate Technology in a report on Wednesday, July 29th. One 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 company. According to data from MarketBeat, Seagate Technology presently has a consensus rating of "Moderate Buy" and an average price target of $986.00.

Key Seagate Technology News

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

• Positive Sentiment: Seagate’s AI-storage opportunity remains a key bullish catalyst. Company research found that 99% of organizations expect artificial intelligence to increase their storage requirements, while only 38% believe they are fully prepared for future data demands—suggesting significant potential demand for Seagate’s products. Global Seagate Research Finds Nearly All Organizations Expect AI to Increase Storage Requirements
• Positive Sentiment: Seagate is reportedly shipping next-generation HAMR hard drives into hyperscale customer contracts, positioning it favorably to capture AI-driven capacity demand. Its nearline capacity is described as committed through 2027, and analysts continue to raise price targets. Seagate Vs. Western Digital: One Moved First on AI Storage Demand
• Positive Sentiment: Edge IoT revenue increased 20% year over year in fiscal fourth quarter, adding another growth avenue beyond Seagate’s core storage business. Can Seagate Extend the Growth Momentum in Its Edge IoT Business?
• Negative Sentiment: Investors are questioning whether Seagate’s elevated valuation already reflects much of its AI upside. Reports say the CEO, CFO and CTO have been selling shares, while an executive separately sold approximately $493,000 of stock. Such transactions can raise concerns about insider confidence, even when they may be routine. Seagate Has Real Upside Left
• Negative Sentiment: Edge IoT growth could face seasonal demand, competition and potential displacement by solid-state drives, creating uncertainty about how long the recent momentum can continue. Can Seagate Extend the Growth Momentum in Its Edge IoT Business?

Seagate Technology Stock Performance

The firm has a market capitalization of $183.18 billion, a PE ratio of 58.04 and a beta of 2.06. 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 50-day moving average price of $848.79 and a 200-day moving average price of $727.69.

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

Seagate Technology Dividend Announcement

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

Institutional Trading of Seagate Technology

A number of hedge funds have recently made changes to their positions in STX. NewEdge Advisors LLC grew its position 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 worth $8,637,000 after buying an additional 10,190 shares during the last quarter. GLOBALT Investments LLC GA lifted its position in shares of Seagate Technology by 820.8% during the 4th quarter. GLOBALT Investments LLC GA now owns 9,760 shares of the data storage provider's stock valued at $2,688,000 after acquiring an additional 8,700 shares during the last quarter. Tredje AP fonden lifted its position in shares of Seagate Technology by 446.6% during the 4th quarter. Tredje AP fonden now owns 111,339 shares of the data storage provider's stock valued at $30,662,000 after acquiring an additional 90,968 shares during the last quarter. USA Financial Formulas bought a new stake in shares of Seagate Technology during the 1st quarter worth $1,328,000. Finally, Profund Advisors LLC boosted its stake in shares of Seagate Technology by 458.6% during the 4th quarter. Profund Advisors LLC now owns 20,282 shares of the data storage provider's stock worth $5,585,000 after acquiring an additional 16,651 shares in the last quarter. Institutional investors and hedge funds 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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