Seagate Technology (NASDAQ:STX) Shares Gap Down - Here's What Happened

Key Points

• Seagate Technology (NASDAQ:STX) gapped down at the open, falling from a prior close of $965.00 to an opening price of $896.74 before trading around $926.77. The move came amid heavy volume of about 627,986 shares.
• Despite the pullback, Wall Street sentiment remains generally constructive: Bank of America raised its price target to $1,150 and reiterated a Buy rating, and multiple other analysts also lifted targets. Overall, the stock still carries a Moderate Buy consensus with an average price target of $880.52.
• There are mixed signals after Seagate’s strong run: recent commentary highlights AI storage demand, HAMR wins, and earnings beats, but Zacks downgraded the stock from Strong Buy to Hold and some analysts warn the rally may already reflect much of the good news.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $965.00, but opened at $896.74. Seagate Technology shares last traded at $926.7690, with a volume of 627,986 shares changing hands.

Key Stories Impacting Seagate Technology

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

• Positive Sentiment: Bank of America raised its price target on Seagate Technology (STX) from $1,000 to $1,150 and reiterated a Buy rating, signaling confidence in further upside from current levels. Bank of America raises Seagate price target
• Positive Sentiment: Recent articles continue to highlight Seagate as a strong momentum and growth stock, supported by AI infrastructure demand, HAMR product wins, and a string of earnings beats. Zacks momentum article
• Neutral Sentiment: Some commentary suggests the stock has already had a huge run this year and may be pricing in much of the good news, which could limit near-term upside even if the long-term story remains strong. Up 250% YTD, Does Seagate Have More Upside Ahead?
• Neutral Sentiment: Zacks Research downgraded Seagate Technology (STX) from Strong Buy to Hold, which adds a note of caution after the stock’s sharp rally. Zacks downgrade
• Negative Sentiment: Several analysts and commentators are warning that Seagate may have less room to run after its rapid 2026 surge, with some preferring other AI storage names on valuation grounds. Seagate vs. Micron article

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. Wells Fargo & Company lifted their price target on Seagate Technology from $700.00 to $900.00 and gave the stock an "equal weight" rating in a research report on Monday, June 1st. TD Cowen upped their price objective on Seagate Technology from $500.00 to $850.00 and gave the company a "buy" rating in a research report on Wednesday, April 29th. Loop Capital raised their price objective on Seagate Technology from $950.00 to $1,140.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Citigroup lifted their target price on Seagate Technology from $740.00 to $1,150.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Finally, China Renaissance boosted their target price on Seagate Technology from $802.00 to $983.00 in a research report on Friday, June 12th. Twenty-one equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, Seagate Technology has an average rating of "Moderate Buy" and an average price target of $880.52.

Seagate Technology Stock Performance

The stock has a market capitalization of $205.96 billion, a PE ratio of 86.99 and a beta of 2.04. The business's 50 day moving average is $835.80 and its 200 day moving average is $540.40. 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 posted its quarterly earnings data on Tuesday, April 28th. The data storage provider reported $4.10 earnings per share for the quarter, topping analysts' consensus estimates 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 company had revenue of $3.11 billion for the quarter, compared to analyst estimates of $2.96 billion. During the same period in the prior year, the company posted $1.90 EPS. The firm's revenue for the quarter was up 44.1% on a year-over-year basis. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. On average, equities research analysts predict that Seagate Technology Holdings PLC will post 14.14 earnings per share for the current fiscal year.

Seagate Technology Announces Dividend

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

Insiders Place Their Bets

In other news, CEO William D. Mosley sold 30,000 shares of the business's stock in a transaction 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 completion of the sale, the chief executive officer directly owned 339,591 shares of the company's stock, valued at approximately $255,131,322.39. The trade was a 8.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Seng Teh sold 8,003 shares of the company's stock in a transaction dated 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 completion of the transaction, the executive vice president owned 3,691 shares in the company, valued at approximately $3,016,580.48. The trade was a 68.44% 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 have sold 121,069 shares of company stock worth $98,747,112 in the last 90 days. 0.79% of the stock is owned by insiders.

Hedge Funds Weigh In On Seagate Technology

Hedge funds have recently added to or reduced their stakes in the stock. Bridgewater Advisors Inc. lifted its position in shares of Seagate Technology by 0.9% in the 1st quarter. Bridgewater Advisors Inc. now owns 1,477 shares of the data storage provider's stock worth $579,000 after purchasing an additional 13 shares during the period. Annis Gardner Whiting Capital Advisors LLC increased its holdings in Seagate Technology by 23.1% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider's stock valued at $31,000 after buying an additional 15 shares during the period. Beaumont Financial Advisors LLC raised its stake in Seagate Technology by 2.1% in the first quarter. Beaumont Financial Advisors LLC now owns 820 shares of the data storage provider's stock worth $321,000 after buying an additional 17 shares in the last quarter. Cornerstone Wealth Group LLC raised its stake in Seagate Technology by 0.5% in the first quarter. Cornerstone Wealth Group LLC now owns 3,542 shares of the data storage provider's stock worth $1,388,000 after buying an additional 19 shares in the last quarter. Finally, WealthCollab LLC lifted its holdings in Seagate Technology by 27.4% during the first quarter. WealthCollab LLC now owns 93 shares of the data storage provider's stock worth $36,000 after buying an additional 20 shares during the period. 92.87% of the stock is currently owned by institutional investors.

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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