Seagate Technology (NASDAQ:STX) Hits New 52-Week High on Better-Than-Expected Earnings

Key Points

• Seagate surged to a new 52-week high after reporting Q3 EPS of $4.10 (vs. $3.47 consensus) and revenue of $3.11B, and then issuing upbeat Q4 guidance (EPS $4.80–$5.20) that investors tied to continued AI/data‑center demand, prompting analyst price‑target increases.
• The company showed strong operating results—revenue up ~44% year‑over‑year, record margins and roughly $1B of free cash flow—helping drive a ~13.7% stock pop and sectorwide lift for storage peers.
• Risks remain: STX now trades at a rich valuation (P/E in the high‑60s to mid‑70s) with a very high reported debt‑to‑equity (~7.6); insiders sold stock recently and the quarterly dividend ($0.74) yields only ~0.4%.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) hit a new 52-week high on Wednesday following a better than expected earnings announcement. The company traded as high as $693.70 and last traded at $672.0470, with a volume of 1541819 shares changing hands. The stock had previously closed at $579.03.

The data storage provider reported $4.10 earnings per share for the quarter, topping analysts' consensus estimates of $3.47 by $0.63. The firm had revenue of $3.11 billion for the quarter, compared to analysts' expectations of $2.94 billion. Seagate Technology had a net margin of 19.59% and a negative return on equity of 936.38%. The company's revenue was up 44.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.90 earnings per share. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS.

Seagate Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 7th. Investors of record on Wednesday, June 24th will be paid a $0.74 dividend. The ex-dividend date of this dividend is Wednesday, June 24th. This represents a $2.96 annualized dividend and a dividend yield of 0.4%. Seagate Technology's payout ratio is currently 33.48%.

Seagate Technology News Roundup

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

• Positive Sentiment: Q3 results materially beat expectations — EPS $4.10 vs. consensus ~$3.47 and revenue $3.11B vs. ~$2.94B; company reported record margins and roughly $1B of free cash flow. Seagate Q3 Press Release
• Positive Sentiment: Very strong forward guidance — Q4 EPS guided to $4.80–$5.20 (street ~3.89) and revenue guided to $3.4–$3.6B — signaling continued AI/data‑center demand. Reuters: Seagate forecasts upbeat quarter
• Positive Sentiment: Wall Street is repricing the stock: Rosenblatt raised its price target to $1,000 (buy), and other firms (Wedbush, BofA, Cantor) have lifted targets to the $700 area — signaling big upside in analyst models. Rosenblatt price-target note
• Positive Sentiment: Sector lift: Seagate’s upbeat forecast helped lift storage peers and pushed storage stocks higher on expectations of sustained AI spending. Reuters: Storage stocks jump
• Neutral Sentiment: Board declared a quarterly dividend of $0.74/share (record June 24, payable July 7); yield ~0.5% — a small income signal but not a primary catalyst.
• Negative Sentiment: Risks and valuation — STX now trades with a high P/E (~65.5) and very high reported debt-to-equity (~7.6). Rapid re‑rating raises downside risk if AI/data‑center demand slows or HAMR adoption/timing disappoints.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on STX. Susquehanna boosted their price objective on shares of Seagate Technology from $485.00 to $615.00 and gave the stock a "neutral" rating in a research note on Wednesday. Bank of America boosted their price objective on shares of Seagate Technology from $605.00 to $700.00 and gave the stock a "buy" rating in a research note on Monday. Morgan Stanley upped their price objective on shares of Seagate Technology from $582.00 to $767.00 and gave the company an "overweight" rating in a research note on Wednesday. Sanford C. Bernstein upped their price target on shares of Seagate Technology from $500.00 to $620.00 and gave the company an "outperform" rating in a research report on Thursday, April 9th. Finally, Argus upped their price target on shares of Seagate Technology from $300.00 to $450.00 and gave the company a "buy" rating in a research report on Thursday, January 29th. Twenty analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $654.96.

Insider Activity at Seagate Technology

In other news, EVP Kian Fatt Chong sold 5,846 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $416.48, for a total transaction of $2,434,742.08. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Jay L. Geldmacher sold 925 shares of the stock in a transaction dated Friday, January 30th. The stock was sold at an average price of $448.02, for a total transaction of $414,418.50. Following the transaction, the director directly owned 223 shares in the company, valued at $99,908.46. This trade represents a 80.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 111,550 shares of company stock worth $46,476,441 over the last quarter. Company insiders own 0.79% of the company's stock.

Hedge Funds Weigh In On Seagate Technology

Institutional investors and hedge funds have recently made changes to their positions in the stock. Salomon & Ludwin LLC raised its holdings in shares of Seagate Technology by 124.4% in the 4th quarter. Salomon & Ludwin LLC now owns 92 shares of the data storage provider's stock worth $27,000 after acquiring an additional 51 shares during the last quarter. Rakuten Securities Inc. raised its holdings in shares of 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. Armstrong Advisory Group Inc. acquired a new stake in shares of Seagate Technology in the 4th quarter worth about $28,000. Avion Wealth raised its holdings in shares of Seagate Technology by 343.5% in the 4th quarter. Avion Wealth now owns 102 shares of the data storage provider's stock worth $28,000 after acquiring an additional 79 shares during the last quarter. Finally, Concord Wealth Partners acquired a new stake in shares of Seagate Technology in the 4th quarter worth about $28,000. Institutional investors own 92.87% of the company's stock.

Seagate Technology Stock Up 13.7%

The company has a debt-to-equity ratio of 7.63, a quick ratio of 0.72 and a current ratio of 1.12. The company has a market cap of $143.58 billion, a price-to-earnings ratio of 74.70, a price-to-earnings-growth ratio of 0.99 and a beta of 1.61. The stock's fifty day moving average is $444.55 and its two-hundred day moving average is $351.81.

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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