Seagate Technology (NASDAQ:STX) Downgraded to "Buy" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Seagate Technology from “strong buy” to “buy,” though the broader analyst consensus remains “Moderate Buy,” with 22 Buy, one Strong Buy, and four Hold ratings and an average target price of $986.
• Seagate reported stronger-than-expected quarterly results, with EPS of $5.71 versus a $5.10 estimate and revenue of $3.63 billion, up 48.5% year over year. Management guided to fiscal Q1 2027 EPS of $7.10–$7.50, supported by AI-related storage demand and its HAMR-based Mozaic platform.
• The stock opened at $973.44 after a substantial rally, but its valuation remains elevated at roughly 70 times earnings. Meanwhile, insiders sold $138.6 million of shares during the quarter, while institutional investors own 92.87% of the company.

Seagate Technology (NASDAQ:STX - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Saturday.

A number of other equities analysts have also issued reports on STX. Zacks Research upgraded shares of Seagate Technology from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 28th. Bank of America boosted their price objective on shares of Seagate Technology from $1,000.00 to $1,150.00 and gave the stock a "buy" rating in a research report on Wednesday, July 1st. Argus upped their price objective on Seagate Technology from $750.00 to $900.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Morgan Stanley increased their price objective on Seagate Technology from $1,035.00 to $1,187.00 and gave the company an "overweight" rating in a research report on Wednesday, July 29th. Finally, Melius Research started coverage on Seagate Technology in a research note on Monday, June 29th. They issued a "buy" rating and a $1,600.00 target price for the company. One equities 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. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $986.00.

Seagate Technology Stock Performance

Shares of NASDAQ:STX opened at $973.44 on Friday. The business has a fifty day moving average of $891.36 and a 200-day moving average of $664.79. The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.17 and a current ratio of 1.67. Seagate Technology has a twelve month low of $152.05 and a twelve month high of $1,145.00. The firm has a market cap of $220.63 billion, a PE ratio of 70.13 and a beta of 2.06.

Seagate Technology (NASDAQ:STX - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.10 by $0.61. The business had revenue of $3.63 billion for the quarter, compared to the consensus estimate of $3.50 billion. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. The firm's quarterly revenue was up 48.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.59 EPS. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. On average, equities research analysts predict that Seagate Technology will post 34.42 EPS for the current fiscal year.

Insider Buying and Selling at Seagate Technology

In other Seagate Technology news, CEO William D. Mosley sold 17,080 shares of Seagate Technology stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $827.30, for a total value of $14,130,284.00. Following the sale, the chief executive officer owned 295,517 shares of the company's stock, valued at $244,481,214.10. This trade represents a 5.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Seng Teh sold 7,361 shares of the stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $920.80, for a total value of $6,778,008.80. Following the transaction, the executive vice president owned 2,931 shares of the company's stock, valued at approximately $2,698,864.80. The trade was a 71.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 163,650 shares of company stock valued at $138,616,274 over the last quarter. 0.79% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Seagate Technology

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Street Corp increased its position in shares of Seagate Technology by 1.0% in 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 boosted its position in Seagate Technology by 5.1% during the fourth quarter. Morgan Stanley now owns 5,317,516 shares of the data storage provider's stock valued at $1,464,391,000 after purchasing an additional 258,151 shares during the last quarter. Geode Capital Management LLC grew its stake in Seagate Technology by 5.0% in the fourth quarter. Geode Capital Management LLC now owns 4,896,815 shares of the data storage provider's stock valued at $1,343,683,000 after purchasing an additional 234,436 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in Seagate Technology by 8.3% in the fourth 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 in the last quarter. Finally, Northern Trust Corp increased its position in shares of Seagate Technology by 17.4% during the 3rd quarter. Northern Trust Corp now owns 1,920,329 shares of the data storage provider's stock worth $453,313,000 after purchasing an additional 284,758 shares during the last quarter. 92.87% of the stock is owned by institutional investors.

Seagate Technology News Summary

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

• Positive Sentiment: Seagate finished fiscal 2026 ahead of expectations, with revenue of $3.63 billion, adjusted EPS of $5.71, and year-over-year revenue growth of 48.5%. Management also guided to fiscal first-quarter 2027 EPS of $7.10 to $7.50, reinforcing expectations for continued earnings growth. How Seagate’s Strong Fiscal 2026 Beat and HAMR Momentum May Impact Seagate Technology Investors
• Positive Sentiment: Non-GAAP gross margin expanded for the 13th consecutive quarter, while quarterly free cash flow reached its strongest level in more than a decade. These trends suggest improving operating leverage and financial flexibility. Seagate Technology Holdings Following Strong FY2026 Results Looks Undervalued By The Narrative
• Positive Sentiment: AI-related storage demand, supply agreements extending beyond 2028, and Seagate’s HAMR-based Mozaic platform are viewed as catalysts for planned mid-20% exabyte growth. Analysts see the company as a potential underappreciated AI-infrastructure beneficiary. The AI Stock Everyone Knows But Few See Becoming a Future Winner
• Positive Sentiment: Upward earnings-estimate revisions are adding to the bullish case, as analysts anticipate that stronger storage demand and expanding margins could produce further upside for STX. Surging Earnings Estimates Signal Upside for Seagate Stock
• Neutral Sentiment: Although some valuation analysis indicates potential discounted-cash-flow upside, Seagate’s substantial multiyear rally and elevated earnings multiple mean the stock is not uniformly viewed as a bargain. Investors remain exposed to storage-industry cyclicality and high expectations. Seagate Stock Could Trade Below Fair Value While Earnings Look Full

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.

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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