Seagate Technology (NASDAQ:STX) Shares Gap Down - Should You Sell?

Key Points

• Seagate shares fell 8.7%, opening at $929.50 after previously closing at $994.79, despite strong recent momentum and a roughly 134% six-month gain.
• Seagate reported quarterly earnings of $5.71 per share and $3.63 billion in revenue, beating estimates and posting 48.5% year-over-year revenue growth. Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $986.
• AI-driven data-center demand and record cash flow support the bullish outlook, but investors face risks from the industry’s boom-and-bust cycle, potential oversupply and elevated valuation. Insiders also sold shares recently, while the company declared a quarterly dividend of $0.74.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $994.79, but opened at $929.50. Seagate Technology shares last traded at $931.21, with a volume of 573,770 shares changing hands.

Key Headlines Impacting Seagate Technology

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

• Positive Sentiment: Seagate shares have gained alongside SanDisk, Micron and other memory stocks as investors anticipate sustained AI-driven demand for data-center storage. Why Sandisk Stock Is Getting Its Mojo Back
• Positive Sentiment: Recent analysis highlights Seagate’s record cash flow and argues that AI infrastructure expansion is strengthening demand for high-capacity hard drives and storage systems. Seagate Stock Gains as AI Storage Demand Fuels Record Cash Flow
• Positive Sentiment: Growth-focused commentary cites Seagate’s above-average financial growth and positioning as reasons the stock could continue outperforming the broader market. 3 Reasons Why Growth Investors Shouldn't Overlook Seagate
• Positive Sentiment: Jim Cramer described memory and storage as one of the market’s most explosive opportunities and included STX among stocks that may still have significant upside. Cramer Says Red-Hot Stock Can Double Again
• Neutral Sentiment: Seagate’s shares have risen roughly 134% over six months and reached a new 52-week high, reflecting strong momentum but also increasing expectations after its recent earnings beat. 3 Reasons We Love Seagate
• Negative Sentiment: Memory and storage markets are historically boom-and-bust industries: aggressive capacity expansion can eventually create oversupply and pressure pricing, margins and STX’s valuation. Jim Cramer Says It's Not Too Late to Invest in Memory Stocks

Wall Street Analysts Forecast Growth

STX has been the subject of several recent analyst reports. JPMorgan Chase & Co. increased their price target on Seagate Technology from $1,095.00 to $1,240.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 29th. UBS Group lifted their price objective on shares of Seagate Technology from $515.00 to $545.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. The Goldman Sachs Group upped their price objective on shares of Seagate Technology from $385.00 to $700.00 and gave the stock a "buy" rating in a report on Wednesday, April 29th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $1,300.00 target price on shares of Seagate Technology in a research report on Wednesday, July 29th. Finally, Evercore raised their target price on shares of Seagate Technology from $750.00 to $1,000.00 and gave the company an "outperform" rating in a research note on Tuesday, May 12th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, Seagate Technology presently has a consensus rating of "Moderate Buy" and an average target price of $986.00.

Seagate Technology Trading Down 8.7%

The company has a market capitalization of $205.88 billion, a price-to-earnings ratio of 65.97 and a beta of 2.06. The firm has a 50-day moving average price of $893.72 and a 200-day moving average price of $671.34. The company has a current ratio of 1.67, a quick ratio of 1.17 and a debt-to-equity ratio of 1.56.

Seagate Technology (NASDAQ:STX - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share for the quarter, beating the consensus estimate of $5.10 by $0.61. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%.The business had revenue of $3.63 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same quarter in the prior year, the firm posted $2.59 earnings per share. The company's revenue was up 48.5% on a year-over-year basis. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. As a group, sell-side analysts predict that Seagate Technology Holdings PLC will post 34.42 EPS for the current year.

Seagate Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th will be issued a $0.74 dividend. This represents a $2.96 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Thursday, September 24th. Seagate Technology's dividend payout ratio is presently 21.33%.

Insider Activity

In related news, CFO Gianluca Romano sold 14,091 shares of the business's stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $811.25, for a total value of $11,431,323.75. Following the sale, the chief financial officer directly owned 21,543 shares in the company, valued at $17,476,758.75. The trade was a 39.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William D. Mosley sold 30,000 shares of the 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 approximately $255,131,322.39. This represents a 8.12% 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. In the last quarter, insiders sold 163,650 shares of company stock worth $138,616,274. Corporate insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Salomon & Ludwin LLC boosted its stake in shares of Seagate Technology by 124.4% during the 4th quarter. Salomon & Ludwin LLC now owns 92 shares of the data storage provider's stock worth $27,000 after acquiring an additional 51 shares in the last quarter. Rakuten Securities Inc. grew its holdings in shares of Seagate Technology by 884.2% in the 2nd quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider's stock worth $27,000 after acquiring an additional 168 shares during the last quarter. Concord Wealth Partners acquired a new stake in shares of Seagate Technology during the fourth quarter worth $28,000. Annis Gardner Whiting Capital Advisors LLC raised its position in shares of 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 worth $31,000 after purchasing an additional 15 shares during the period. Finally, Quarry LP purchased a new stake in shares of Seagate Technology during the fourth quarter valued at $31,000. Institutional investors and hedge funds 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.

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.

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