Seagate Technology (NASDAQ:STX) Shares Down 6.2% - Time to Sell?

Key Points

• Seagate Technology shares fell 6.2% on Monday, hitting an intraday low of $840.01 and trading well below the prior close, with volume sharply under the average session level.
• Despite the drop, Wall Street sentiment remains constructive: 22 analysts rate the stock Buy, five Hold, and the consensus price target is $898.52, while several firms recently raised their targets and ratings.
• The company has shown strong fundamental performance, with recent quarterly EPS of $4.10 beating estimates and revenue rising 44.1% year over year; it also paid a $0.74 quarterly dividend, though insiders have been selling shares in recent months.

Shares of Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) dropped 6.2% on Monday . The stock traded as low as $840.01 and last traded at $854.0050. 472,771 shares traded hands during mid-day trading, a decline of 89% from the average session volume of 4,218,140 shares. The stock had previously closed at $910.34.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on STX shares. UBS Group raised their price objective on Seagate Technology from $515.00 to $545.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. Sanford C. Bernstein upped their target price on shares of Seagate Technology from $620.00 to $1,000.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 29th. Wells Fargo & Company upgraded shares of Seagate Technology from an "equal weight" rating to an "overweight" rating and increased their price target for the stock from $900.00 to $1,100.00 in a research note on Friday. Bank of America lifted their price target on shares of Seagate Technology from $1,000.00 to $1,150.00 and gave the company a "buy" rating in a research report on Wednesday, July 1st. Finally, Evercore boosted their price objective on shares of Seagate Technology from $750.00 to $1,000.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 12th. Twenty-two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, Seagate Technology presently has an average rating of "Moderate Buy" and a consensus price target of $898.52.

Seagate Technology Stock Down 5.3%

The company has a debt-to-equity ratio of 3.16, a current ratio of 1.33 and a quick ratio of 0.85. The stock has a 50 day simple moving average of $880.60 and a 200-day simple moving average of $572.75. The firm has a market cap of $193.36 billion, a PE ratio of 81.82 and a beta of 2.04.

Seagate Technology (NASDAQ:STX - Get Free Report) last released its earnings results on Tuesday, April 28th. The data storage provider reported $4.10 EPS for the quarter, topping analysts' consensus estimates of $3.51 by $0.59. The firm had revenue of $3.11 billion for 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% on a year-over-year basis. During the same period in the prior year, the firm posted $1.90 earnings per share. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. Sell-side analysts predict that Seagate Technology Holdings PLC will post 14.14 EPS for the current fiscal year.

Seagate Technology Announces Dividend

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

Insider Activity

In other news, EVP Ban Seng Teh sold 8,003 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were 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 filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William D. Mosley sold 30,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $751.29, for a total transaction of $22,538,700.00. Following the sale, the chief executive officer directly owned 339,591 shares of the company's stock, valued at $255,131,322.39. This trade represents a 8.12% decrease in their position. 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 have sold 151,069 shares of company stock worth $126,191,753. Corporate insiders own 0.79% of the company's stock.

Institutional Trading of Seagate Technology

Institutional investors and hedge funds have recently modified their holdings of the business. Integrated Wealth Concepts LLC boosted its position in shares of Seagate Technology by 168.0% during the first quarter. Integrated Wealth Concepts LLC now owns 7,177 shares of the data storage provider's stock valued at $610,000 after buying an additional 4,499 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in Seagate Technology in the 2nd quarter worth about $262,000. Cerity Partners LLC raised its position in Seagate Technology by 25.8% in the 2nd quarter. Cerity Partners LLC now owns 36,682 shares of the data storage provider's stock worth $5,294,000 after buying an additional 7,517 shares during the last quarter. Sei Investments Co. lifted its stake in Seagate Technology by 64.8% during the 2nd quarter. Sei Investments Co. now owns 8,543 shares of the data storage provider's stock valued at $1,233,000 after acquiring an additional 3,358 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its stake in Seagate Technology by 0.4% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 127,887 shares of the data storage provider's stock valued at $18,458,000 after acquiring an additional 462 shares during the period. 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.

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