Seagate Technology (NASDAQ:STX) Trading Down 1.4% - Should You Sell?

Key Points

• Seagate shares fell 1.4% to $816.64 in Tuesday trading, on volume 46% below the average session level.
• The company’s AI-driven storage outlook remains a major positive: quarterly EPS and revenue beat estimates, revenue rose 48.5% year over year, and analysts maintain a largely bullish view with a “Moderate Buy” consensus and average price target of $986.
• Valuation and execution risks remain significant. Seagate trades at about 58.8 times earnings after a strong multiyear rally, while elevated insider selling and its sensitivity to AI demand, HAMR production and cash-flow expectations could increase volatility.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s share price fell 1.4% during trading on Tuesday . The stock traded as low as $802.05 and last traded at $816.64. Approximately 2,345,149 shares traded hands during trading, a decline of 46% from the average session volume of 4,377,436 shares. The stock had previously closed at $828.38.

Seagate Technology News Roundup

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

• Positive Sentiment: AI data-center expansion is increasing demand for mass-capacity storage, including conventional hard drives, NAND flash and DRAM. Seagate is positioned to benefit as AI workloads create a growing data-storage bottleneck. AI’s memory stack: What investors need to know
• Positive Sentiment: Recent coverage highlights Seagate’s HAMR advances and improving cash flow as additional catalysts. The company’s latest quarterly results also exceeded expectations, with earnings and revenue above consensus and revenue up 48.5% year over year; management’s next-quarter earnings guidance is strong. Seagate’s YTD Gains are Double the Industry
• Positive Sentiment: Wall Street remains constructive, with analysts suggesting the AI-storage trade may have further room to run. A separate report also describes Seagate as potentially undervalued based on discounted-cash-flow estimates, while Wall Street Zen upgraded the shares to Strong Buy. Forget Nvidia. This AI Stock Is Selling the Storage Behind the Boom
• Neutral Sentiment: Seagate’s appearance at an AI-focused conference has increased visibility into its role in the data-center ecosystem, but it also raises the question of whether the strong AI narrative is already reflected in the stock’s valuation. Seagate Heads to AI Summit
• Negative Sentiment: Valuation and execution risks are limiting enthusiasm. After an extraordinary multi-year advance, Seagate trades at elevated earnings multiples, leaving the shares vulnerable if AI-related demand, HAMR production or future cash-flow expectations fall short. Recent selling across concentrated AI and semiconductor investments also highlights volatility risk. Seagate Stock May Be 30% Undervalued on AI Bubble Fears

Analyst Ratings Changes

A number of research analysts have commented on STX shares. Bank of America increased their price objective 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. Weiss Ratings restated a "buy (b)" rating on shares of Seagate Technology in a research note on Wednesday, June 24th. Zacks Research raised shares of Seagate Technology from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 28th. Evercore lifted their price target on Seagate Technology from $750.00 to $1,000.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 12th. Finally, Wells Fargo & Company upped their price objective on Seagate Technology from $1,100.00 to $1,180.00 and gave the company an "overweight" rating in a research note on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Seagate Technology has a consensus rating of "Moderate Buy" and an average price target of $986.00.

Seagate Technology Trading Down 1.4%

The firm has a market cap of $185.09 billion, a P/E ratio of 58.84 and a beta of 2.06. The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.17 and a current ratio of 1.67. The firm has a fifty day moving average of $865.57 and a 200-day moving average of $700.60.

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 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 firm had revenue of $3.63 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same period last year, the company earned $2.59 earnings per share. The firm'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. Equities research analysts forecast that Seagate Technology Holdings PLC will post 35.7 earnings per share 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 dividend of $0.74 per share. This represents a $2.96 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, September 24th. Seagate Technology's payout ratio is presently 21.33%.

Insider Activity

In other news, CEO William D. Mosley sold 20,657 shares of Seagate Technology stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $910.48, for a total transaction of $18,807,785.36. Following the sale, the chief executive officer owned 320,860 shares of the company's stock, valued at approximately $292,136,612.80. The trade was a 6.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 14,091 shares of the business's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $811.25, for a total value of $11,431,323.75. Following the transaction, the chief financial officer owned 21,543 shares of the company's stock, valued at approximately $17,476,758.75. This represents a 39.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 162,015 shares of company stock worth $137,693,196 in the last quarter. Company insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Seagate Technology

Several institutional investors have recently bought and sold shares of the stock. Rakuten Securities Inc. raised its position in shares of Seagate Technology by 884.2% during the 2nd quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider's stock worth $27,000 after buying an additional 168 shares in the last quarter. Retirement Wealth Solutions LLC increased its stake in shares of Seagate Technology by 70.6% during the second quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider's stock valued at $28,000 after acquiring an additional 12 shares during the period. Annis Gardner Whiting Capital Advisors LLC increased its stake in shares of Seagate Technology by 23.1% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider's stock valued at $31,000 after acquiring an additional 15 shares during the period. Quarry LP bought a new stake in Seagate Technology during the fourth quarter worth approximately $31,000. Finally, WealthCollab LLC lifted its position in 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 purchasing an additional 20 shares during the period. Institutional investors and hedge funds own 92.87% of the company's stock.

About Seagate Technology

Seagate Technology NASDAQ: STX is a global data storage company that designs, manufactures and sells a broad range of storage products and systems. The firm's product portfolio includes traditional hard disk drives (HDDs), solid-state drives (SSDs), hybrid storage devices and integrated storage systems aimed at enterprise, cloud, OEM and consumer markets. Seagate also provides services that support its hardware offerings, including data recovery and storage management solutions.

Seagate's products are used in a wide array of applications, from large-scale data centers and cloud infrastructure to desktop and portable consumer devices.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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