Seagate Technology (NASDAQ:STX) Shares Down 5.5% - Here's Why

Key Points

• Seagate Technology shares fell 5.5% in mid-day trading, even after the stock had recently been hovering near higher levels. Trading volume was slightly below average.
• Wall Street remains bullish on the stock, with multiple firms raising price targets or upgrading ratings, citing strong demand for high-capacity storage tied to cloud and AI infrastructure spending.
• Recent fundamentals were strong: Seagate beat quarterly earnings and revenue expectations, posted 44.1% year-over-year revenue growth, and continued returning cash to shareholders via a quarterly dividend.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s stock price dropped 5.5% during mid-day trading on Monday . The company traded as low as $840.01 and last traded at $860.66. 4,128,046 shares traded hands during mid-day trading, a decline of 3% from the average session volume of 4,245,331 shares. The stock had previously closed at $910.34.

Seagate Technology News Roundup

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

• Positive Sentiment: Citigroup raised its price target on Seagate Technology Holdings PLC (STX) to $1,240 from $1,150 and maintained a Buy rating, suggesting continued upside potential. Benzinga
• Positive Sentiment: Wells Fargo upgraded Seagate Technology Holdings PLC (STX) to Overweight, citing strong demand for high-capacity storage products tied to cloud and AI infrastructure spending. Yahoo Finance
• Positive Sentiment: Analysts continue to point to Seagate’s AI storage opportunity, with cloud demand and expanding high-capacity HDD adoption supporting a stronger growth outlook. Donanimhaber
• Positive Sentiment: Bank of America recently reiterated a Buy rating and lifted its target to $1,150, reinforcing the view that Seagate’s fundamentals are improving alongside AI-related storage demand. Yahoo Finance

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on STX. Melius Research started coverage on Seagate Technology in a research report on Monday, June 29th. They set a "buy" rating and a $1,600.00 target price on the stock. Rosenblatt Securities increased their price target on shares of Seagate Technology from $500.00 to $1,000.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Morgan Stanley raised their price objective on shares of Seagate Technology from $767.00 to $1,035.00 and gave the stock an "overweight" rating in a report on Monday, June 15th. China Renaissance upped their target price on shares of Seagate Technology from $802.00 to $983.00 in a report on Friday, June 12th. Finally, Fox Advisors lowered shares of Seagate Technology from an "overweight" rating to an "equal weight" rating in a research note on Monday, June 22nd. Twenty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $898.52.

Seagate Technology Trading Down 5.5%

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 stock has a market capitalization of $192.84 billion, a PE ratio of 81.59 and a beta of 2.04. The business's 50-day moving average is $880.60 and its two-hundred day moving average is $572.75.

Seagate Technology (NASDAQ:STX - Get Free Report) last posted its quarterly earnings results 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 business had revenue of $3.11 billion during the quarter, compared to analysts' expectations 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 quarterly revenue was up 44.1% compared to the same quarter last year. During the same period last year, the firm earned $1.90 EPS. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. As a group, equities research analysts anticipate that Seagate Technology Holdings PLC will post 14.14 earnings per share for the current year.

Seagate Technology Dividend Announcement

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

Insider Buying and Selling

In other Seagate Technology news, EVP John Christopher Morris sold 1,364 shares of the company's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $880.19, for a total value of $1,200,579.16. Following the transaction, the executive vice president directly owned 12,088 shares in the company, valued at approximately $10,639,736.72. This represents a 10.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William D. Mosley sold 9,343 shares of the company's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $924.42, for a total transaction of $8,636,856.06. Following the transaction, the chief executive officer directly owned 311,517 shares in the company, valued at $287,972,545.14. The trade was a 2.91% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 151,069 shares of company stock valued at $126,191,753 over the last three months. Insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Seagate Technology

Several hedge funds have recently made changes to their positions in the business. PFA Pension Forsikringsaktieselskab acquired a new position in shares of Seagate Technology in the fourth quarter valued at $23,882,000. New York State Teachers Retirement System boosted its stake 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 buying an additional 8,991 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. increased its holdings in Seagate Technology by 1.2% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 518,806 shares of the data storage provider's stock valued at $142,874,000 after buying an additional 6,028 shares during the period. Praxis Investment Management Inc. raised its stake in shares of Seagate Technology by 56.5% in the 4th quarter. Praxis Investment Management Inc. now owns 6,615 shares of the data storage provider's stock valued at $1,822,000 after buying an additional 2,389 shares in the last quarter. Finally, Ritholtz Wealth Management raised its stake in shares of Seagate Technology by 64.5% in the 4th 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 in the last quarter. Institutional investors and hedge funds 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.