Seagate Technology (NASDAQ:STX) Hits New 1-Year High - What's Next?

Key Points

• Seagate Technology shares reached a new 52-week high at $174.68 during trading, with an average price target set at $154.50 by analysts.
• The company reported earnings per share of $2.59 for the last quarter, exceeding expectations and marking a 29.5% revenue increase year-over-year.
• Seagate announced a quarterly dividend of $0.72, representing an annualized dividend yield of 1.7%.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) shares reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $174.68 and last traded at $170.98, with a volume of 816019 shares changing hands. The stock had previously closed at $170.50.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on STX shares. Wells Fargo & Company raised their price objective on shares of Seagate Technology from $122.00 to $160.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 17th. Robert W. Baird raised their price objective on shares of Seagate Technology from $120.00 to $188.00 and gave the company an "outperform" rating in a research note on Wednesday, July 30th. Wall Street Zen lowered Seagate Technology from a "buy" rating to a "hold" rating in a research report on Friday, May 30th. Wedbush restated an "outperform" rating and set a $140.00 price target on shares of Seagate Technology in a research note on Wednesday, May 21st. Finally, BNP Paribas raised Seagate Technology from a "strong sell" rating to a "hold" rating in a research note on Friday, May 16th. Fourteen investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $154.50.

Seagate Technology Stock Up 2.0%

The firm has a market capitalization of $37.00 billion, a PE ratio of 25.70, a price-to-earnings-growth ratio of 1.03 and a beta of 1.53. The firm's 50-day simple moving average is $152.66 and its 200-day simple moving average is $116.82.

Seagate Technology (NASDAQ:STX - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The data storage provider reported $2.59 earnings per share for the quarter, topping analysts' consensus estimates of $2.45 by $0.14. Seagate Technology had a net margin of 16.15% and a negative return on equity of 169.60%. The business had revenue of $2.44 billion for the quarter, compared to analysts' expectations of $2.40 billion. During the same quarter in the prior year, the company earned $1.05 earnings per share. The business's revenue was up 29.5% compared to the same quarter last year. Seagate Technology has set its Q1 2026 guidance at 2.100-2.500 EPS. On average, equities research analysts forecast that Seagate Technology Holdings PLC will post 6.83 earnings per share for the current year.

Seagate Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 9th. Shareholders of record on Tuesday, September 30th will be paid a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Tuesday, September 30th. Seagate Technology's dividend payout ratio (DPR) is presently 42.54%.

Seagate Technology declared that its board has approved a share repurchase program on Thursday, May 22nd that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the data storage provider to purchase up to 21.6% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling at Seagate Technology

In related news, insider James Ci Lee sold 1,116 shares of the business's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $153.36, for a total transaction of $171,149.76. Following the completion of the transaction, the insider owned 257 shares in the company, valued at $39,413.52. The trade was a 81.28% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Ban Seng Teh sold 1,724 shares of the business's stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $151.61, for a total transaction of $261,375.64. Following the sale, the executive vice president directly owned 6,147 shares in the company, valued at approximately $931,946.67. This represents a 21.90% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 117,712 shares of company stock worth $16,448,971. 0.81% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Salvus Wealth Management LLC raised its position in shares of Seagate Technology by 2.0% in the second quarter. Salvus Wealth Management LLC now owns 3,416 shares of the data storage provider's stock valued at $493,000 after buying an additional 68 shares during the last quarter. Asset Dedication LLC lifted its stake in Seagate Technology by 9.5% in the second quarter. Asset Dedication LLC now owns 809 shares of the data storage provider's stock worth $117,000 after acquiring an additional 70 shares during the last quarter. GoalVest Advisory LLC lifted its position in shares of Seagate Technology by 30.6% during the 2nd quarter. GoalVest Advisory LLC now owns 320 shares of the data storage provider's stock worth $46,000 after buying an additional 75 shares during the last quarter. Angeles Wealth Management LLC lifted its position in shares of Seagate Technology by 2.2% during the 2nd quarter. Angeles Wealth Management LLC now owns 3,485 shares of the data storage provider's stock worth $503,000 after buying an additional 76 shares during the last quarter. Finally, Bessemer Group Inc. raised its position in Seagate Technology by 3.3% in the 2nd quarter. Bessemer Group Inc. now owns 2,502 shares of the data storage provider's stock valued at $361,000 after purchasing an additional 81 shares during the last quarter. Hedge funds and other institutional investors own 92.87% of the company's stock.

About Seagate Technology

Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives.

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