Seagate Technology (NASDAQ:STX) Trading Down 2% - What's Next?

Key Points

• Seagate shares fell 2% to about $885.92 in mid-day trading, while volume was 22% below the average session level.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $986; JPMorgan and Citigroup recently raised their targets to $1,240 and $1,300, respectively.
• Seagate reported strong quarterly results, with EPS of $5.71 and revenue of $3.63 billion, up 48.5% year over year. Its HAMR and Mozaic technologies are positioned to benefit from AI-driven demand for high-capacity data-center storage.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) was down 2% during mid-day trading on Wednesday . The stock traded as low as $885.39 and last traded at $885.92. 3,392,873 shares were traded during mid-day trading, a decline of 22% from the average session volume of 4,348,081 shares. The stock had previously closed at $904.38.

Trending Headlines about Seagate Technology

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

• Positive Sentiment: Seagate completed the redemption of its exchangeable notes, a capital-structure development that removes the related obligations and may reduce future dilution concerns. Seagate Completes Redemption of Exchangeable Notes
• Positive Sentiment: Seagate’s HAMR technology and Mozaic platform are increasing drive capacity, exabyte growth and efficiency. The technology is positioned to benefit as AI workloads drive demand for higher-capacity storage. Seagate's HAMR Bet is Paying Off
• Positive Sentiment: Market commentary remains bullish, citing strong AI-related storage demand, record backlogs and expectations for additional upside after Seagate’s substantial one-year gain. Bull of the Day: Seagate Technology
• Positive Sentiment: One investment thesis says much of Seagate’s expected production is already committed, providing visibility into demand and supporting the view that AI data-center growth can extend the rally. Here's the One Storage Stock I'd Buy With $2,000
• Neutral Sentiment: A forecast projects STX reaching $1,000, but says that outcome depends on multiple factors aligning, including continued demand and execution. The conditional outlook highlights both upside potential and execution risk. Price Prediction: Seagate Stock Will Hit $1000 on This Date
• Neutral Sentiment: Seagate’s shares recently rose sharply alongside broader strength in storage stocks, increasing the possibility of consolidation as investors assess whether the AI-driven gains can be sustained. Seagate Technology Holdings Jumps

Analysts Set New Price Targets

Several analysts recently weighed in on STX shares. Weiss Ratings reissued a "buy (b)" rating on shares of Seagate Technology in a research note on Wednesday, June 24th. Susquehanna lifted their target price on Seagate Technology from $775.00 to $875.00 and gave the stock a "neutral" rating in a report on Wednesday, July 29th. JPMorgan Chase & Co. increased their price target on Seagate Technology from $1,095.00 to $1,240.00 and gave the company an "overweight" rating in a research note on Wednesday, July 29th. Citigroup raised their price objective on Seagate Technology from $1,240.00 to $1,300.00 and gave the stock a "buy" rating in a research report on Wednesday, July 29th. Finally, Fox Advisors downgraded shares of Seagate Technology from an "overweight" rating to an "equal weight" rating in a research report on Monday, June 22nd. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $986.00.

Seagate Technology Stock Performance

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 firm has a market capitalization of $200.79 billion, a PE ratio of 63.83 and a beta of 2.06. The company's fifty day simple moving average is $848.33 and its 200 day simple moving average is $718.18.

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, 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 in the previous year, the firm posted $2.59 earnings per share. The company's quarterly 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. As a group, equities research analysts expect that Seagate Technology Holdings PLC will post 35.7 EPS for the current fiscal year.

Seagate Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Thursday, September 24th will be issued a dividend of $0.74 per share. The ex-dividend date of this dividend is Thursday, September 24th. This represents a $2.96 dividend on an annualized basis and a yield of 0.3%. Seagate Technology's dividend payout ratio is 21.33%.

Insider Buying and Selling

In other news, EVP James Lee sold 9,013 shares of the company's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $794.84, for a total transaction of $7,163,892.92. Following the sale, the executive vice president directly owned 347 shares in the company, valued at $275,809.48. This represents a 96.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William D. Mosley sold 30,000 shares of the 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 completion of the sale, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 186,323 shares of company stock worth $157,393,279 in the last 90 days. 0.79% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Rakuten Securities Inc. increased its stake in Seagate Technology by 884.2% in the 2nd quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider's stock worth $27,000 after acquiring an additional 168 shares during the last quarter. Retirement Wealth Solutions LLC increased its position in shares of Seagate Technology by 70.6% in the second quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider's stock worth $28,000 after purchasing an additional 12 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC raised its stake in 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 valued at $31,000 after purchasing an additional 15 shares in the last quarter. Quarry LP bought a new stake in Seagate Technology during the fourth quarter valued at approximately $31,000. Finally, WealthCollab LLC grew its stake in Seagate Technology by 27.4% in the 1st 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. 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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