Seagate Technology (NASDAQ:STX) Stock Price Up 3.4% - Here's Why

Key Points

• Seagate shares rose 3.4% to $660.81, despite trading below their 50-day and 200-day moving averages.
• Analyst sentiment remains positive, with 22 Buy ratings and five Holds producing a “Moderate Buy” consensus and an average price target of $973.40.
• The company exceeded quarterly earnings and revenue expectations, while reporting 48.5% year-over-year revenue growth; however, insiders sold approximately $378.8 million of stock over the past 90 days.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) traded up 3.4% on Monday. The stock traded as high as $675.71 and last traded at $660.81. 4,120,823 shares were traded during trading, a decline of 6% from the average daily volume of 4,401,292 shares. The stock had previously closed at $639.01.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on STX. Bank of America boosted their target price on shares of Seagate Technology from $1,000.00 to $1,150.00 and gave the company a "buy" rating in a research note on Wednesday, July 1st. Zacks Research cut Seagate Technology from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 28th. Weiss Ratings raised Seagate Technology from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday. Wedbush lifted their price target on Seagate Technology from $825.00 to $1,000.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. Finally, Wall Street Zen raised Seagate Technology from a "buy" rating to a "strong-buy" rating in a research report on Saturday, September 26th. Twenty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $973.40.

Seagate Technology Price Performance

The stock's 50-day moving average is $842.38 and its 200 day moving average is $804.55. The stock has a market capitalization of $150.26 billion, a PE ratio of 47.61 and a beta of 2.06. The company has a quick ratio of 1.17, a current ratio of 1.67 and a debt-to-equity ratio of 1.56.

Seagate Technology (NASDAQ:STX - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share 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 firm had revenue of $3.63 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same quarter in the prior year, the business earned $2.59 EPS. The company's revenue for the quarter 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. As a group, equities analysts predict that Seagate Technology Holdings PLC will post 35.70 earnings per share for the current year.

Seagate Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th were issued 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 was Thursday, September 24th. Seagate Technology's payout ratio is currently 21.33%.

Insider Activity at Seagate Technology

In related news, EVP Ban Teh sold 52,730 shares of Seagate Technology stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $782.08, for a total transaction of $41,239,078.40. Following the completion of the sale, the executive vice president owned 5,810 shares of the company's stock, valued at approximately $4,543,884.80. This trade represents a 90.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Mosley sold 97,889 shares of Seagate Technology stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $772.14, for a total value of $75,584,012.46. Following the sale, the chief executive officer directly owned 378,108 shares of the company's stock, valued at approximately $291,952,311.12. The trade was a 20.57% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 466,959 shares of company stock valued at $378,840,741. 0.51% of the stock is owned by insiders.

Institutional Investors Weigh In On Seagate Technology

Hedge funds and other institutional investors have recently made changes to their positions in the company. Retirement Wealth Solutions LLC boosted its stake in Seagate Technology by 70.6% during the second quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider's stock worth $28,000 after buying an additional 12 shares in the last quarter. Bridgewater Advisors Inc. increased its holdings in Seagate Technology by 0.9% in the 1st quarter. Bridgewater Advisors Inc. now owns 1,477 shares of the data storage provider's stock valued at $579,000 after buying an additional 13 shares during the period. Baker Tilly Wealth Management LLC increased its holdings in Seagate Technology by 4.6% in the 3rd quarter. Baker Tilly Wealth Management LLC now owns 319 shares of the data storage provider's stock valued at $295,000 after buying an additional 14 shares during the period. Annis Gardner Whiting Capital Advisors LLC raised its stake in shares of Seagate Technology by 23.1% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider's stock valued at $31,000 after buying an additional 15 shares in the last quarter. Finally, Blalock Williams LLC raised its stake in shares of Seagate Technology by 2.6% in the 2nd quarter. Blalock Williams LLC now owns 636 shares of the data storage provider's stock valued at $614,000 after buying an additional 16 shares in the last quarter. 92.87% of the stock is owned by hedge funds and other institutional investors.

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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