Seagate Technology (NASDAQ:STX) Shares Gap Down - What's Next?

Key Points

• Seagate shares gapped lower, opening at $818.60 after previously closing at $850 and later trading around $781.79. The stock remains below its 50-day moving average of $893.23 but above its 200-day average of $683.35.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $986. Recent targets range as high as $1,090, though Fox Advisors downgraded the stock to “equal weight.”
• Seagate reported strong quarterly results, including $5.71 earnings per share versus the $5.10 estimate and 48.5% year-over-year revenue growth to $3.63 billion. The company also declared a $0.74 quarterly dividend, while executives have sold shares under pre-arranged trading plans.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $850.00, but opened at $818.60. Seagate Technology shares last traded at $781.7910, with a volume of 467,083 shares.

Analysts Set New Price Targets

A number of analysts recently commented on STX shares. Mizuho increased their price target on Seagate Technology from $875.00 to $1,090.00 and gave the company an "outperform" rating in a research report on Monday, June 8th. Fox Advisors cut Seagate Technology from an "overweight" rating to an "equal weight" rating in a research report on Monday, June 22nd. TD Cowen upped their price objective on Seagate Technology from $850.00 to $1,000.00 and gave the company a "buy" rating in a research note on Wednesday, July 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. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Seagate Technology in a research report on Wednesday, June 24th. One investment 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. According to data from MarketBeat, Seagate Technology has a consensus rating of "Moderate Buy" and a consensus price target of $986.00.

Seagate Technology Stock Performance

The company's 50 day moving average price is $893.23 and its 200-day moving average price is $683.35. The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.17 and a current ratio of 1.67. The company has a market cap of $181.84 billion, a PE ratio of 57.98 and a beta of 2.06.

Seagate Technology (NASDAQ:STX - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The data storage provider reported $5.71 EPS for the quarter, topping analysts' consensus estimates of $5.10 by $0.61. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. The company had revenue of $3.63 billion for the quarter, compared to analysts' expectations of $3.50 billion. During the same quarter in the previous year, the firm posted $2.59 EPS. Seagate Technology'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. Equities research analysts anticipate that Seagate Technology Holdings PLC will post 34.42 earnings per share for the current fiscal year.

Seagate Technology Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th will be paid a $0.74 dividend. The ex-dividend date is Thursday, September 24th. This represents a $2.96 annualized dividend and a dividend yield of 0.4%. Seagate Technology's payout ratio is presently 21.33%.

Insider Activity

In other news, CEO William D. Mosley sold 20,657 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $910.48, for a total transaction of $18,807,785.36. Following the transaction, the chief executive officer owned 320,860 shares of the company's stock, valued at $292,136,612.80. This represents a 6.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 14,091 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $811.25, for a total value of $11,431,323.75. Following the transaction, the chief financial officer owned 21,543 shares of the company's stock, valued at $17,476,758.75. The trade was a 39.54% 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 133,650 shares of company stock valued at $116,077,574 in the last 90 days. Insiders own 0.79% of the company's stock.

Hedge Funds Weigh In On Seagate Technology

Several large investors have recently modified their holdings of the business. Retirement Wealth Solutions LLC lifted its stake in Seagate Technology by 70.6% in the 2nd quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider's stock worth $28,000 after purchasing an additional 12 shares in the last quarter. Bridgewater Advisors Inc. grew its position in shares of Seagate Technology by 0.9% in the first quarter. Bridgewater Advisors Inc. now owns 1,477 shares of the data storage provider's stock valued at $579,000 after purchasing an additional 13 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC increased its holdings in shares of Seagate Technology by 23.1% in 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 purchasing an additional 15 shares during the last quarter. Blalock Williams LLC increased its holdings in shares of Seagate Technology by 2.6% in the second quarter. Blalock Williams LLC now owns 636 shares of the data storage provider's stock valued at $614,000 after purchasing an additional 16 shares during the last quarter. Finally, Beaumont Financial Advisors LLC lifted its position in Seagate Technology by 2.1% during 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. Hedge funds and other institutional investors 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.

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