Seagate Technology (NASDAQ:STX) Shares Down 5.1% - Here's Why

Key Points

• Seagate shares fell 5.1% to about $506 midday, trading as low as $505.53 on light volume of ~617,000 shares (roughly an 85% drop from average session volume).
• Analysts remain broadly positive—several firms raised price targets (e.g., Morgan Stanley to $582, Loop Capital to $700, Citigroup to $595), with 19 Buy and 6 Hold ratings and a consensus target of $491, giving the stock a "Moderate Buy" outlook.
• Fundamentals show strength and caution: Seagate reported an EPS beat ($3.11 vs. $2.77) and revenue up 21.5% to $2.83B, pays a $0.74 quarterly dividend (annualized $2.96, 0.6% yield), but carries a very high debt-to-equity ratio (7.63) and a negative return on equity.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) fell 5.1% on Wednesday . The stock traded as low as $505.53 and last traded at $506.3090. 617,381 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 4,083,580 shares. The stock had previously closed at $533.44.

Wall Street Analyst Weigh In

STX has been the topic of several research analyst reports. Morgan Stanley boosted their target price on Seagate Technology from $468.00 to $582.00 and gave the company an "overweight" rating in a research note on Monday, April 6th. JPMorgan Chase & Co. started coverage on shares of Seagate Technology in a research report on Monday, March 30th. They set an "overweight" rating and a $525.00 price objective on the stock. Loop Capital upped their price objective on shares of Seagate Technology from $465.00 to $700.00 and gave the stock a "buy" rating in a report on Monday, February 9th. Citigroup raised their target price on shares of Seagate Technology from $480.00 to $595.00 and gave the stock a "buy" rating in a research report on Monday. Finally, Argus boosted 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. Nineteen equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, Seagate Technology has an average rating of "Moderate Buy" and a consensus target price of $491.00.

Seagate Technology Trading Down 4.8%

The stock's fifty day moving average price is $415.62 and its 200 day moving average price is $328.78. The stock has a market cap of $110.71 billion, a P/E ratio of 57.60, a PEG ratio of 1.11 and a beta of 1.61. The company has a current ratio of 1.12, a quick ratio of 0.72 and a debt-to-equity ratio of 7.63.

Seagate Technology (NASDAQ:STX - Get Free Report) last issued its quarterly earnings results on Tuesday, January 27th. The data storage provider reported $3.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.77 by $0.34. Seagate Technology had a net margin of 19.59% and a negative return on equity of 936.38%. The company had revenue of $2.83 billion during the quarter, compared to analyst estimates of $2.73 billion. During the same period last year, the business earned $2.03 EPS. Seagate Technology's quarterly revenue was up 21.5% compared to the same quarter last year. Seagate Technology has set its Q3 2026 guidance at 3.200-3.600 EPS. Equities research analysts expect that Seagate Technology Holdings PLC will post 6.83 earnings per share for the current year.

Seagate Technology Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 8th. Stockholders of record on Wednesday, March 25th were given a $0.74 dividend. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Wednesday, March 25th. Seagate Technology's payout ratio is currently 33.48%.

Insider Transactions at Seagate Technology

In related news, EVP Kian Fatt Chong sold 5,846 shares of the company's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $416.48, for a total value of $2,434,742.08. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP James Ci Lee sold 673 shares of the firm's stock in a transaction that occurred on Monday, January 26th. The shares were sold at an average price of $348.85, for a total transaction of $234,776.05. Following the sale, the executive vice president directly owned 257 shares of the company's stock, valued at $89,654.45. This trade represents a 72.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 112,223 shares of company stock worth $46,711,217 over the last quarter. Corporate insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Seagate Technology

Several institutional investors and hedge funds have recently added to or reduced their stakes in STX. Salomon & Ludwin LLC boosted its holdings in shares of Seagate Technology by 124.4% in the fourth quarter. Salomon & Ludwin LLC now owns 92 shares of the data storage provider's stock worth $27,000 after buying an additional 51 shares during the last quarter. Armstrong Advisory Group Inc. bought a new position in Seagate Technology in the fourth quarter worth approximately $28,000. Concord Wealth Partners purchased a new position in shares of Seagate Technology during the 4th quarter worth $28,000. Avion Wealth grew its position in shares of Seagate Technology by 343.5% during the 4th quarter. Avion Wealth now owns 102 shares of the data storage provider's stock valued at $28,000 after acquiring an additional 79 shares during the period. Finally, Quarry LP purchased a new stake in shares of Seagate Technology in the 4th quarter worth $31,000. Hedge funds and other institutional investors own 92.87% of the company's stock.

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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