Seagate Technology (NASDAQ:STX) Shares Down 5.1% on Analyst Downgrade

Key Points

• Seagate Technology shares fell 5.1% after Fox Advisors downgraded the stock from Overweight to Equal Weight, with heavy trading volume adding to the move.
• Despite the downgrade, several other analysts remain upbeat: recent price-target hikes from firms like Mizuho, Cantor Fitzgerald, and Rosenblatt reflect continued optimism around Seagate’s AI-related storage demand.
• The company has also benefited from strong fundamentals, including a recent earnings beat and raised guidance, though some commentary notes the stock’s sharp rally has left valuation looking stretched.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) was down 5.1% during mid-day trading on Tuesday after Fox Advisors downgraded the stock from an overweight rating to an equal weight rating. The company traded as low as $983.00 and last traded at $1,038.59. 5,185,729 shares changed hands during trading, an increase of 25% from the average daily volume of 4,163,436 shares. The stock had previously closed at $1,094.04.

Other research analysts also recently issued reports about the stock. Cantor Fitzgerald increased their target price on shares of Seagate Technology from $700.00 to $1,000.00 and gave the company an "overweight" rating in a research report on Wednesday, April 29th. UBS Group lifted their price target on shares of Seagate Technology from $515.00 to $545.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. The Goldman Sachs Group upped 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. Mizuho increased their price objective on Seagate Technology from $875.00 to $1,090.00 and gave the company an "outperform" rating in a report on Monday, June 8th. Finally, Rosenblatt Securities raised their target price on Seagate Technology from $500.00 to $1,000.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Seagate Technology presently has a consensus rating of "Moderate Buy" and an average price target of $831.79.

Insider Buying and Selling at Seagate Technology

In other Seagate Technology news, EVP Ban Seng Teh sold 8,003 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $817.28, for a total transaction of $6,540,691.84. Following the sale, the executive vice president owned 3,691 shares in the company, valued at $3,016,580.48. This represents a 68.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John Christopher Morris sold 5,626 shares of the firm's stock in a transaction on Monday, May 4th. The stock was sold at an average price of $738.37, for a total value of $4,154,069.62. Following the completion of the transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 141,069 shares of company stock valued at $107,161,712 in the last quarter. Corporate insiders own 0.79% of the company's stock.

More Seagate Technology News

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

• Positive Sentiment: Mizuho raised its price target on Seagate to $1,090 from $875 and kept an Outperform rating, citing improved estimates tied to the company’s AI-related demand outlook. Mizuho Lifts PT on Seagate Technology Holdings (STX)
• Positive Sentiment: Several recent articles highlighted Seagate as one of the biggest AI memory winners this year, with investors and “smart money” still seeing room for further upside after the stock’s powerful year-to-date surge. The smart money agrees that Seagate stock still has room to surge higher
• Neutral Sentiment: Commentary from 24/7 Wall St. said Seagate has had an exceptional run in 2026 as AI-driven storage demand reshapes the outlook for hard-drive makers, but also noted valuation looks stretched after the rally. Up 290% YTD, How High Can Seagate Rally?
• Neutral Sentiment: Another piece suggested Wall Street remains cautious about tech multiple compression and said Seagate may be more attractive on a pullback, implying near-term upside may be limited without a broader market dip. Buy, Hold, or Sell: Wall Street Fears Tech Compression, but This AI Storage Monster Has a Hidden Weapon
• Negative Sentiment: Fox Advisors downgraded Seagate from Overweight to Equal Weight, which likely weighed on the shares by tempering enthusiasm after the strong run-up. Finviz downgrade reference
• Negative Sentiment: Broader memory stocks sold off as the tech rout spread, adding sector pressure on Seagate even though AI-related fundamentals remain constructive. Memory Stock Rout Hits Popular DRAM ETF

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in STX. Integrated Wealth Concepts LLC lifted its holdings in shares of Seagate Technology by 168.0% in the first quarter. Integrated Wealth Concepts LLC now owns 7,177 shares of the data storage provider's stock worth $610,000 after buying an additional 4,499 shares in the last quarter. Sivia Capital Partners LLC bought a new stake in Seagate Technology during the 2nd quarter worth approximately $262,000. Cerity Partners LLC increased its holdings in Seagate Technology by 25.8% during the 2nd quarter. Cerity Partners LLC now owns 36,682 shares of the data storage provider's stock worth $5,294,000 after acquiring an additional 7,517 shares during the period. Sei Investments Co. lifted its stake in Seagate Technology by 64.8% in the 2nd quarter. Sei Investments Co. now owns 8,543 shares of the data storage provider's stock worth $1,233,000 after purchasing an additional 3,358 shares in the last quarter. Finally, The Manufacturers Life Insurance Company lifted its stake in Seagate Technology by 0.4% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 127,887 shares of the data storage provider's stock worth $18,458,000 after purchasing an additional 462 shares in the last quarter. Institutional investors own 92.87% of the company's stock.

Seagate Technology Stock Performance

The company's fifty day simple moving average is $781.00 and its 200 day simple moving average is $510.69. The stock has a market capitalization of $232.88 billion, a P/E ratio of 98.54 and a beta of 2.04. The company has a current ratio of 1.33, a quick ratio of 0.85 and a debt-to-equity ratio of 3.16.

Seagate Technology (NASDAQ:STX - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The data storage provider reported $4.10 earnings per share for the quarter, topping the consensus estimate of $3.51 by $0.59. Seagate Technology had a net margin of 21.60% and a return on equity of 1,005.65%. The firm had revenue of $3.11 billion for the quarter, compared to analysts' expectations of $2.96 billion. During the same quarter in the prior year, the firm posted $1.90 earnings per share. The business's quarterly revenue was up 44.1% on a year-over-year basis. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. As a group, sell-side analysts forecast that Seagate Technology Holdings PLC will post 14.14 earnings per share for the current fiscal year.

Seagate Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Wednesday, June 24th will be paid a $0.74 dividend. This represents a $2.96 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Wednesday, June 24th. Seagate Technology's dividend payout ratio is currently 28.08%.

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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