Seagate Technology (NASDAQ:STX) Stock Price Down 3.2% - Here's Why

Key Points

• Seagate shares fell 3.2% to $690.81 amid broader concerns about Chinese technology advances, competition, memory oversupply and supply-chain conditions, with trading volume 33% above average.
• The long-term outlook remains supported by AI-driven data growth and high-capacity HDDs, including the 44TB Mozaic 4 drives, which could improve margins and reduce data-center operating costs. Analysts maintain a “Moderate Buy” consensus with an average price target of $986.
• Investors are watching Seagate’s fiscal Q1 2027 results, scheduled for October 27, for confirmation of demand, pricing and margin strength. The company recently exceeded earnings and revenue expectations, but substantial insider selling and the stock’s elevated valuation remain risks.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) shares dropped 3.2% on Thursday. The stock traded as low as $652.29 and last traded at $690.81. Approximately 5,858,335 shares were traded during mid-day trading, an increase of 33% from the average session volume of 4,393,910 shares. The stock had previously closed at $713.54.

Trending Headlines about Seagate Technology

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

• Positive Sentiment: Seagate’s 44TB Mozaic 4 hard drives could support further gross-margin expansion. Higher storage density, improved cost efficiency and strong demand from cloud providers may increase profitability as customers deploy more capacity. Can Seagate's 44TB Mozaic 4 Drives Lift Gross Margins Further?
• Positive Sentiment: Analysts see Seagate as a beneficiary of AI-related data growth. HAMR technology and higher-capacity drives, including the 44TB product and a planned 100TB drive by 2032, could reduce the number of drives and operating costs required by data centers. Recent coverage cited fiscal 2026 sales growth, stronger operating margins and substantially higher free cash flow. Seagate's Improving Earnings Support a Cautious Upside
• Positive Sentiment: Seagate is scheduled to report fiscal first-quarter 2027 results after the market closes on October 27. Investors will focus on whether demand, pricing and the company’s margin outlook validate the bullish storage-demand thesis. Seagate to Report Fiscal First Quarter 2027 Results
• Neutral Sentiment: Several reports argue that data creation and AI workloads could provide Seagate with a long growth runway, despite the stock’s recent retreat and elevated valuation. This creates potential upside but leaves the shares sensitive to execution and expectations.
• Negative Sentiment: Reports of technological breakthroughs in China and concerns about competition, memory oversupply and supply-chain conditions have triggered a sell-off in storage and semiconductor stocks, weighing on STX investor sentiment. Seagate and Western Digital Shares Plummet

Analyst Upgrades and Downgrades

A number of brokerages recently commented on STX. Weiss Ratings lowered shares of Seagate Technology from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, October 2nd. JPMorgan Chase & Co. raised their price objective 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. Rosenblatt Securities boosted their price objective on Seagate Technology from $1,300.00 to $1,400.00 and gave the stock a "buy" rating in a report on Wednesday, July 29th. Argus upped their price target on shares of Seagate Technology from $750.00 to $900.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Finally, Fox Advisors lowered Seagate Technology from an "overweight" rating to an "equal weight" rating in a research note on Monday, June 22nd. Twenty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, Seagate Technology has an average rating of "Moderate Buy" and a consensus target price of $986.00.

Seagate Technology Price Performance

The business's 50-day simple moving average is $849.09 and its two-hundred day simple moving average is $800.42. The firm has a market cap of $157.08 billion, a price-to-earnings ratio of 49.77 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.

Seagate Technology (NASDAQ:STX - Get Free Report) last posted its quarterly 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. The firm had revenue of $3.63 billion for the quarter, compared to analysts' expectations of $3.50 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%. The company's revenue for the quarter was up 48.5% compared to the same quarter last year. During the same period in the prior year, the business earned $2.59 EPS. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. As a group, research analysts expect that Seagate Technology Holdings PLC will post 35.70 EPS for the current fiscal year.

Seagate Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th were given a $0.74 dividend. This represents a $2.96 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 24th. Seagate Technology's dividend payout ratio is presently 21.33%.

Insiders Place Their Bets

In other Seagate Technology news, CEO William D. Mosley sold 11,002 shares of the business's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $935.60, for a total value of $10,293,471.20. Following the transaction, the chief executive officer directly owned 362,108 shares in the company, valued at $338,788,244.80. The trade was a 2.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John Morris sold 9,354 shares of Seagate Technology stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $877.91, for a total value of $8,211,970.14. Following the completion of the sale, the executive vice president directly owned 22,693 shares of the company's stock, valued at approximately $19,922,411.63. This trade represents a 29.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 466,959 shares of company stock valued at $378,840,741. 0.51% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in STX. Retirement Wealth Solutions LLC increased 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 in the last quarter. Annis Gardner Whiting Capital Advisors LLC lifted its stake in shares of Seagate Technology by 23.1% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider's stock worth $31,000 after buying an additional 15 shares in the last quarter. WealthCollab LLC lifted its stake in shares of Seagate Technology by 27.4% in the first quarter. WealthCollab LLC now owns 93 shares of the data storage provider's stock worth $36,000 after buying an additional 20 shares in the last quarter. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Seagate Technology during the fourth quarter valued at approximately $37,000. Finally, McMillan Office Inc. purchased a new stake in Seagate Technology during the 1st quarter valued at $39,000. Institutional investors own 92.87% of the company's stock.

About Seagate Technology

Seagate Technology Holdings plc is a data storage technology company that designs, manufactures and supplies solutions for storing, managing and accessing digital information. Its product portfolio is centered on hard disk drives (HDDs), including high-capacity drives used in cloud data centers, enterprise environments, surveillance systems, network-attached storage and personal computing.

The company also offers solid-state drives (SSDs), storage systems, external storage products and related services.

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