Seagate Technology (NASDAQ:STX) Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Seagate Technology to “strong buy” from “hold.” The broader analyst consensus remains “moderate buy,” with an average price target of $970.
• Seagate reported quarterly EPS of $5.71, beating estimates of $5.10, while revenue rose 48.5% year over year to $3.63 billion. Its fiscal Q1 2027 guidance of $7.10–$7.50 EPS and $4.0–$4.2 billion in revenue also exceeded analyst expectations, driven by strong AI and data-center storage demand.
• Risks remain after the stock’s major rally: Seagate trades at a high valuation and has elevated volatility, while insiders sold roughly $126.2 million of shares over the past 90 days.

Seagate Technology (NASDAQ:STX - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Tuesday,Zacks.com reports.

STX has been the topic of a number of other research reports. TD Cowen lifted their price target on shares of Seagate Technology from $850.00 to $1,000.00 and gave the company a "buy" rating in a research note on Wednesday. Susquehanna raised their price objective on shares of Seagate Technology from $775.00 to $875.00 and gave the stock a "neutral" rating in a report on Wednesday. Loop Capital boosted their price objective on shares of Seagate Technology from $950.00 to $1,140.00 and gave the company a "buy" rating in a research report on Friday, May 15th. Bank of America upped their target price on shares of Seagate Technology from $1,000.00 to $1,150.00 and gave the stock a "buy" rating in a research note on Wednesday, July 1st. Finally, BNP Paribas Exane increased their target price on Seagate Technology from $530.00 to $860.00 and gave the stock an "outperform" rating in a report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $970.00.

Seagate Technology Trading Up 2.3%

NASDAQ STX opened at $764.43 on Tuesday. The firm has a market cap of $171.41 billion, a P/E ratio of 55.07 and a beta of 2.04. The company has a debt-to-equity ratio of 3.16, a current ratio of 1.33 and a quick ratio of 0.85. The stock's 50-day moving average is $895.22 and its 200-day moving average is $622.36. Seagate Technology has a one year low of $138.30 and a one year high of $1,145.00.

Seagate Technology (NASDAQ:STX - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share for the quarter, beating the consensus estimate of $5.10 by $0.61. Seagate Technology had a return on equity of 680.78% and a net margin of 26.11%.The business had revenue of $3.63 billion for the quarter, compared to analysts' expectations of $3.50 billion. During the same quarter in the previous year, the business posted $2.59 EPS. Seagate Technology's revenue for the quarter was up 48.5% on a year-over-year basis. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. Sell-side analysts anticipate that Seagate Technology will post 26.84 earnings per share for the current fiscal year.

Insider Buying and Selling at Seagate Technology

In other Seagate Technology news, EVP John Christopher Morris sold 5,626 shares of the business's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $738.37, for a total transaction of $4,154,069.62. Following the sale, the executive vice president directly owned 11,954 shares of the company's stock, valued at $8,826,474.98. The trade was a 32.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William D. Mosley sold 30,000 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $751.29, for a total transaction of $22,538,700.00. Following the transaction, the chief executive officer owned 339,591 shares of the company's stock, valued at approximately $255,131,322.39. This represents a 8.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 151,069 shares of company stock worth $126,191,753. Company insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. PFA Pension Forsikringsaktieselskab bought a new stake in shares of Seagate Technology in the 4th quarter valued at about $23,882,000. New York State Teachers Retirement System grew its holdings in Seagate Technology by 5.0% during the fourth quarter. New York State Teachers Retirement System now owns 187,044 shares of the data storage provider's stock worth $51,510,000 after purchasing an additional 8,991 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its position in Seagate Technology by 1.2% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 518,806 shares of the data storage provider's stock worth $142,874,000 after buying an additional 6,028 shares during the last quarter. Praxis Investment Management Inc. increased its position in Seagate Technology by 56.5% during the fourth quarter. Praxis Investment Management Inc. now owns 6,615 shares of the data storage provider's stock worth $1,822,000 after buying an additional 2,389 shares during the last quarter. Finally, Ritholtz Wealth Management raised its stake in Seagate Technology by 64.5% in the fourth quarter. Ritholtz Wealth Management now owns 21,321 shares of the data storage provider's stock valued at $5,872,000 after buying an additional 8,358 shares during the period. 92.87% of the stock is owned by institutional investors and hedge funds.

Seagate Technology News Roundup

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

• Positive Sentiment: Results exceeded expectations: Seagate reported non-GAAP EPS of $5.71 versus the $5.10 consensus and revenue of $3.63 billion versus $3.50 billion. Revenue rose 48.5% year over year, while the company highlighted record profitability and $3.1 billion in fiscal-year free cash flow. Seagate fiscal fourth-quarter results
• Positive Sentiment: Upbeat guidance raised confidence: Fiscal first-quarter 2027 EPS is expected at $7.10-$7.50, well above the approximately $5.63 analyst estimate, with revenue guidance of $4.0-$4.2 billion versus consensus near $3.7 billion. The outlook supports the view that demand is not limited to a short-lived AI spending spike. Seagate AI-driven storage outlook
• Positive Sentiment: AI storage demand and pricing power: Cloud and data-center customers are expanding storage capacity, while Seagate’s HAMR and Mozaic technologies allow higher-capacity drives without equivalent manufacturing expansion. Analysts cited strong execution, scarce supply and a potentially favorable new pricing environment. Wall Street praises Seagate execution and pricing power
• Positive Sentiment: Analyst sentiment improved: Citi, JPMorgan, Wells Fargo, TD Cowen, Wedbush, Susquehanna and Rosenblatt raised their price targets, with targets ranging from $875 to $1,400. Cantor Fitzgerald also reaffirmed an overweight rating with a $1,300 target, reinforcing the bullish reaction to the earnings report.
• Neutral Sentiment: Dividend declared: Seagate announced a quarterly dividend of $0.74 per share, payable October 7 to shareholders of record September 24. The payout provides income support but is modest relative to the stock’s valuation and growth profile.
• Negative Sentiment: Valuation and volatility remain risks: The stock trades at a high earnings multiple after a major rally, and its elevated beta leaves it vulnerable if AI infrastructure spending slows. A broader memory-sector selloff and concerns that strong results are already priced in could limit further gains.

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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