Seagate Technology (NASDAQ:STX) Trading Up 6.5% - Here's What Happened

Key Points

• Seagate shares rose 6.5% to $904.38 in mid-day trading, with volume 15% above the average session level.
• Analysts broadly remain bullish after Seagate exceeded quarterly estimates, reporting $5.71 in EPS versus $5.10 expected and $3.63 billion in revenue, up 48.5% year over year. The stock has a “Moderate Buy” consensus rating and an average price target of $986.
• Seagate announced a quarterly dividend of $0.74 per share, equivalent to an annualized $2.96 payout and a 0.3% yield. Meanwhile, insiders have sold 191,765 shares worth approximately $161.9 million over the past 90 days.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) was up 6.5% during mid-day trading on Tuesday . The company traded as high as $925.44 and last traded at $904.38. 5,010,924 shares changed hands during trading, an increase of 15% from the average session volume of 4,347,545 shares. The stock had previously closed at $849.28.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on STX. Citigroup lifted their price objective on Seagate Technology from $1,240.00 to $1,300.00 and gave the stock a "buy" rating in a report on Wednesday, July 29th. Susquehanna increased their price objective on Seagate Technology from $775.00 to $875.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. JPMorgan Chase & Co. raised their price target on Seagate Technology from $1,095.00 to $1,240.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. Wedbush boosted their target price on Seagate Technology from $825.00 to $1,000.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 29th. Finally, Melius Research began coverage on shares of Seagate Technology in a research report on Monday, June 29th. They set a "buy" rating and a $1,600.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $986.00.

Seagate Technology Stock Up 6.5%

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 market capitalization of $204.97 billion, a PE ratio of 65.16 and a beta of 2.06. The company has a 50 day moving average price of $849.54 and a 200-day moving average price of $714.80.

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

Seagate Technology Dividend Announcement

The business 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. The ex-dividend date is Thursday, September 24th. This represents a $2.96 dividend on an annualized basis and a yield of 0.3%. Seagate Technology's payout ratio is currently 21.33%.

Insider Activity

In other Seagate Technology news, CEO William D. Mosley sold 30,000 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The shares were 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 of the company's stock, valued at approximately $240,939,735.04. This represents a 9.23% decrease in their ownership of the stock. The sale was disclosed in a filing 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, EVP Ban Teh sold 9,862 shares of the firm's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $852.97, for a total value of $8,411,990.14. Following the completion of the transaction, the executive vice president directly owned 5,210 shares in the company, valued at approximately $4,443,973.70. This represents a 65.43% 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. Over the last ninety days, insiders have sold 191,765 shares of company stock worth $161,865,249. Company insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Seagate Technology

Several institutional investors and hedge funds have recently modified their holdings of the stock. Retirement Wealth Solutions LLC boosted its holdings in shares of 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 during the last quarter. Jones Financial Companies Lllp purchased a new stake in shares of Seagate Technology during the 2nd quarter worth approximately $39,000. Trust Co. of Vermont bought a new position in shares of Seagate Technology during the 2nd quarter valued at approximately $54,000. Triumph Capital Management boosted its position in shares of Seagate Technology by 93.5% during the 2nd quarter. Triumph Capital Management now owns 60 shares of the data storage provider's stock valued at $58,000 after acquiring an additional 29 shares during the last quarter. Finally, Cornerstone Financial Management LLC grew its holdings in shares of Seagate Technology by 109.7% in the second quarter. Cornerstone Financial Management LLC now owns 65 shares of the data storage provider's stock valued at $63,000 after purchasing an additional 34 shares in the last quarter. Institutional investors own 92.87% of the company's stock.

Seagate Technology Company Profile

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.

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