Seagate Technology (NASDAQ:STX) Shares Down 4.7% - Should You Sell?

Key Points

• Seagate shares fell 4.7% to $812.76 amid broader selling in storage and memory stocks, as investors questioned whether AI-driven demand and pricing can support elevated valuations.
• The company’s fundamentals remain strong: quarterly EPS of $5.71 and revenue of $3.63 billion exceeded expectations, while revenue increased 48.5% year over year. Analysts maintain a generally bullish outlook, with a “Moderate Buy” consensus and an average price target of $986.
• Key risks include intense valuation expectations, potential future memory oversupply from industry capacity expansion, and insider selling. Seagate trades at a P/E ratio of 58.56 and has a 0.4% dividend yield.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s stock price traded down 4.7% during trading on Friday . The company traded as low as $761.80 and last traded at $812.76. 5,897,687 shares were traded during mid-day trading, an increase of 33% from the average session volume of 4,443,026 shares. The stock had previously closed at $852.95.

Key Seagate Technology News

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

• Positive Sentiment: Analysts raised Seagate’s estimated fair value from $959.48 to $1,115.87, citing stronger hard-drive pricing power, AI-related storage demand, and improving expectations for margins and cash generation. Seagate stock fair value rises after analysts lift storage demand
• Positive Sentiment: Jim Cramer argued that Seagate’s recent earnings were not poor, reinforcing the view that the company remains a beneficiary of AI-related demand. Seagate previously exceeded quarterly earnings and revenue expectations and issued strong forward EPS guidance. Jim Cramer discusses Seagate earnings
• Neutral Sentiment: Seagate remains one of the growth stocks highlighted for August, with analysts pointing to continued AI-driven demand as a potential long-term opportunity. Top-ranked growth stocks for August
• Negative Sentiment: Western Digital’s earnings beat was overshadowed by guidance that failed to meet extremely high investor expectations. Because Seagate and Western Digital compete in hard-disk drives, the disappointment triggered broader selling across memory and storage stocks. Why Western Digital stock is sinking
• Negative Sentiment: Shares across the sector, including Seagate, Western Digital, Sandisk, Micron and SK Hynix, continued to weaken as investors questioned whether AI-related memory demand and pricing can sustain current valuations.
• Negative Sentiment: SK Hynix’s approval of roughly $38 billion for two new memory fabrication plants heightened concerns about future capacity expansion, capital spending and a possible oversupply cycle in 2027. SK Hynix approves new memory fabs

Wall Street Analyst Weigh In

A number of analysts have issued reports on STX shares. Cantor Fitzgerald reissued an "overweight" rating and issued a $1,300.00 target price on shares of Seagate Technology in a research report on Wednesday, July 29th. JPMorgan Chase & Co. increased their price target on Seagate Technology from $1,095.00 to $1,240.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 29th. The Goldman Sachs Group boosted their price objective on Seagate Technology from $385.00 to $700.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Barclays upped their price objective on shares of Seagate Technology from $1,000.00 to $1,250.00 and gave the company an "overweight" rating in a report on Thursday, July 30th. Finally, Citigroup lifted their target price on shares of Seagate Technology from $1,240.00 to $1,300.00 and gave the stock a "buy" rating in a research note on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $986.00.

Seagate Technology Price Performance

The business's 50-day moving average price is $896.05 and its 200 day moving average price is $644.70. The company has a market capitalization of $184.21 billion, a P/E ratio of 58.56 and a beta of 2.06. The company has a quick ratio of 1.17, a current ratio of 1.67 and a debt-to-equity ratio of 1.56.

Seagate Technology (NASDAQ:STX - Get Free Report) last posted its earnings results on Tuesday, July 28th. The data storage provider reported $5.71 EPS for the quarter, topping the consensus estimate of $5.10 by $0.61. The business had revenue of $3.63 billion during the quarter, compared to analysts' expectations of $3.50 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%.The firm's revenue was up 48.5% on a year-over-year basis. During the same period in the previous year, the business earned $2.59 earnings per share. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. Analysts anticipate that Seagate Technology Holdings PLC will post 33.08 EPS for the current fiscal year.

Seagate Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th will be issued a $0.74 dividend. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, September 24th. Seagate Technology's payout ratio is presently 21.33%.

Insiders Place Their Bets

In related news, CFO Gianluca Romano sold 903 shares of Seagate Technology stock in a transaction on Friday, June 12th. The shares were sold at an average price of $880.19, for a total value of $794,811.57. Following the transaction, the chief financial officer directly owned 42,860 shares of the company's stock, valued at $37,724,943.40. The trade was a 2.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Ban Seng Teh sold 989 shares of the company's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $880.19, for a total transaction of $870,507.91. Following the sale, the executive vice president owned 4,290 shares of the company's stock, valued at $3,776,015.10. This represents a 18.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 149,638 shares of company stock valued at $126,692,095 over the last three months. 0.79% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Seagate Technology

A number of hedge funds have recently modified their holdings of STX. State Street Corp grew its stake 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 worth $2,587,535,000 after purchasing an additional 94,527 shares during the last quarter. Morgan Stanley lifted its holdings in Seagate Technology by 5.1% in the 4th quarter. Morgan Stanley now owns 5,317,516 shares of the data storage provider's stock worth $1,464,391,000 after buying an additional 258,151 shares during the period. Geode Capital Management LLC grew its position in shares of Seagate Technology by 5.0% in the 4th quarter. Geode Capital Management LLC now owns 4,896,815 shares of the data storage provider's stock worth $1,343,683,000 after buying an additional 234,436 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of Seagate Technology by 8.3% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,193,063 shares of the data storage provider's stock worth $879,338,000 after buying an additional 243,551 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA increased its stake in shares of Seagate Technology by 1,510.1% during the fourth 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 buying an additional 1,883,769 shares during the period. Hedge funds and other institutional investors own 92.87% of the company's stock.

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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