Seagate Technology Holdings PLC to Issue Quarterly Dividend of $0.74 (NASDAQ:STX)

Key Points

• Seagate declared a quarterly dividend of $0.74 per share, payable October 7 to shareholders of record on September 24. The dividend is supported by a 30.7% payout ratio and represents an annualized dividend of $2.96 per share.
• Seagate reported quarterly EPS of $5.71, exceeding estimates of $5.10, while revenue reached $3.63 billion and increased 48.5% year over year. The company issued first-quarter fiscal 2027 EPS guidance of $7.10 to $7.50.
• Shares rose 3.5% to $773.37, while institutional investors owned 92.87% of the stock. Insiders sold approximately $126.2 million in shares over the past 90 days.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) declared a quarterly dividend on Tuesday, July 28th. Shareholders of record on Thursday, September 24th will be paid a dividend of 0.74 per share by the data storage provider on Wednesday, October 7th. This represents a c) dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, September 24th.

Seagate Technology has increased its dividend by an average of 0.0%annually over the last three years and has increased its dividend annually for the last 1 consecutive years. Seagate Technology has a dividend payout ratio of 30.7% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Seagate Technology to earn $26.84 per share next year, which means the company should continue to be able to cover its $2.96 annual dividend with an expected future payout ratio of 11.0%.

Seagate Technology Trading Up 3.5%

Shares of NASDAQ:STX traded up $26.07 during trading on Wednesday, reaching $773.37. 1,640,259 shares of the company were exchanged, compared to its average volume of 4,324,460. The business's fifty day simple moving average is $894.95 and its 200-day simple moving average is $618.98. The company has a debt-to-equity ratio of 3.16, a current ratio of 1.33 and a quick ratio of 0.85. Seagate Technology has a 12-month low of $138.30 and a 12-month high of $1,145.00. The firm has a market capitalization of $173.41 billion, a PE ratio of 74.79 and a beta of 2.04.

Seagate Technology (NASDAQ:STX - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.10 by $0.61. The firm 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 1,005.65% and a net margin of 21.60%.Seagate Technology's quarterly revenue was up 48.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.59 earnings per share. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. On average, research analysts anticipate that Seagate Technology will post 14.14 EPS for the current year.

Insider Buying and Selling

In related news, CFO Gianluca Romano sold 903 shares of the firm's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $880.19, for a total transaction of $794,811.57. Following the sale, the chief financial officer owned 42,860 shares of the company's stock, valued at $37,724,943.40. This trade represents a 2.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP John Christopher Morris sold 1,364 shares of Seagate Technology stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $880.19, for a total value of $1,200,579.16. Following the completion of the transaction, the executive vice president owned 12,088 shares in the company, valued at $10,639,736.72. This trade represents a 10.14% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 151,069 shares of company stock valued at $126,191,753. Company insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. State Street Corp lifted its position in Seagate Technology by 1.0% during the fourth quarter. State Street Corp now owns 9,370,805 shares of the data storage provider's stock valued at $2,587,535,000 after acquiring an additional 94,527 shares during the last quarter. Morgan Stanley grew its holdings in Seagate Technology by 5.1% in the fourth quarter. Morgan Stanley now owns 5,317,516 shares of the data storage provider's stock worth $1,464,391,000 after purchasing an additional 258,151 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Seagate Technology by 5.0% during the fourth quarter. Geode Capital Management LLC now owns 4,896,815 shares of the data storage provider's stock worth $1,343,683,000 after purchasing an additional 234,436 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Seagate Technology by 8.3% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,193,063 shares of the data storage provider's stock valued at $879,338,000 after purchasing an additional 243,551 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA lifted its holdings in shares of Seagate Technology by 1,510.1% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 2,008,516 shares of the data storage provider's stock valued at $553,125,000 after purchasing an additional 1,883,769 shares during the last quarter. Hedge funds and other institutional investors 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.

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