Seagate Technology (NASDAQ:STX) Shares Down 1% - Here's What Happened

Key Points

• Seagate shares fell about 1% in mid-day trading, with volume running below average. The stock dipped as low as $695.14 before last trading near $733.35.
• Investor sentiment remains mixed: analysts are broadly bullish and several firms recently raised price targets, but comments from the CEO about how long it would take to build new factories sparked a selloff across storage and memory stocks.
• Fundamentals and shareholder returns remain strong, as Seagate recently beat quarterly earnings and revenue estimates, posted 44.1% year-over-year revenue growth, and announced a quarterly dividend of $0.74 per share.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s stock price was down 1% during mid-day trading on Tuesday . The company traded as low as $695.14 and last traded at $733.35. Approximately 3,629,131 shares traded hands during trading, a decline of 14% from the average daily volume of 4,236,080 shares. The stock had previously closed at $740.84.

Seagate Technology News Roundup

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

• Positive Sentiment: Analysts remain constructive on Seagate’s business, with one report highlighting continued Wall Street optimism and another noting Evercore ISI raised its price target. Are Wall Street Analysts Bullish on Seagate Technology Stock?
• Positive Sentiment: Longer-term demand trends remain favorable, with commentary pointing to structural growth in AI storage needs, strong demand for mass-capacity drives, and ongoing adoption of Mozaic HAMR technology. Can Structural Growth & Durable Demand Fuel the Next Rally in Seagate?
• Neutral Sentiment: Seagate’s presentation at the J.P. Morgan conference provided more detail on its strategy, but the market focus has shifted to capacity constraints rather than new product or financial updates. Seagate Technology Holdings plc (STX) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
• Negative Sentiment: CEO comments that it would take too long to build new factories triggered a sharp selloff and dragged down other memory and storage names, reinforcing concerns about near-term supply constraints. Seagate leads memory sell-off as CEO says it would 'take too long' to build new factories

Wall Street Analyst Weigh In

A number of analysts recently issued reports on STX shares. TD Cowen boosted their price objective on Seagate Technology from $500.00 to $850.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Mizuho boosted their price objective on Seagate Technology from $565.00 to $700.00 and gave the company an "outperform" rating in a research note on Wednesday, April 29th. KeyCorp set a $500.00 target price on Seagate Technology in a research note on Wednesday, January 28th. Morgan Stanley upped their target price on Seagate Technology from $582.00 to $767.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 29th. Finally, JPMorgan Chase & Co. upped their target price on Seagate Technology from $525.00 to $775.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $733.71.

Seagate Technology Price Performance

The firm has a market capitalization of $164.44 billion, a P/E ratio of 69.58 and a beta of 1.98. The company has a debt-to-equity ratio of 3.16, a quick ratio of 0.85 and a current ratio of 1.33. The business has a 50 day simple moving average of $533.71 and a two-hundred day simple moving average of $398.04.

Seagate Technology (NASDAQ:STX - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The data storage provider reported $4.10 EPS for the quarter, beating the consensus estimate of $3.51 by $0.59. The firm had revenue of $3.11 billion for the quarter, compared to analyst estimates of $2.96 billion. Seagate Technology had a return on equity of 1,005.65% and a net margin of 21.60%.The company's revenue was up 44.1% on a year-over-year basis. During the same period in the prior year, the company earned $1.90 EPS. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. On average, sell-side analysts expect that Seagate Technology Holdings PLC will post 14.1 EPS for the current fiscal year.

Seagate Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Wednesday, June 24th will be given a dividend of $0.74 per share. The ex-dividend date is Wednesday, June 24th. This represents a $2.96 annualized dividend and a dividend yield of 0.4%. Seagate Technology's dividend payout ratio is 28.08%.

Insider Activity

In other news, EVP John Christopher Morris sold 5,626 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $738.37, for a total transaction of $4,154,069.62. Following the transaction, the executive vice president directly owned 11,954 shares in the company, valued at approximately $8,826,474.98. This represents a 32.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 22,488 shares of the stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $774.22, for a total value of $17,410,659.36. Following the transaction, the chief financial officer owned 42,847 shares in the company, valued at $33,173,004.34. This trade represents a 34.42% 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. In the last three months, insiders sold 118,283 shares of company stock worth $65,989,618. 0.79% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Seagate Technology

Several institutional investors have recently bought and sold shares of STX. WCM Investment Management LLC purchased a new stake in Seagate Technology during the 3rd quarter valued at about $1,187,621,000. Arrowstreet Capital Limited Partnership boosted its holdings in Seagate Technology by 1,072.5% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,949,512 shares of the data storage provider's stock valued at $696,262,000 after acquiring an additional 2,697,957 shares during the period. Massachusetts Financial Services Co. MA boosted its holdings in 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 acquiring an additional 1,883,769 shares during the period. Norges Bank purchased a new stake in Seagate Technology during the 4th quarter valued at about $498,363,000. Finally, Soroban Capital Partners LP boosted its holdings in Seagate Technology by 1,468.1% during the 2nd quarter. Soroban Capital Partners LP now owns 1,417,600 shares of the data storage provider's stock valued at $204,602,000 after acquiring an additional 1,327,197 shares during the period. 92.87% of the stock is currently owned by hedge funds and other institutional investors.

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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