Seagate Technology (NASDAQ:STX) Shares Gap Up - Should You Buy?

Key Points

• Seagate Technology shares gapped up and were last trading around $862.91, after opening well above the prior close. The move came amid strong market attention on the stock.
• Analysts remain bullish on STX, with 22 Buy ratings and 5 Hold ratings and a consensus target price of $898.52. Recent firms, including Mizuho and Bank of America, also raised their price targets.
• Recent earnings and guidance were strong, with Seagate reporting $4.10 EPS versus the $3.51 estimate and revenue of $3.11 billion, up 44.1% year over year. The company also set Q4 2026 EPS guidance at $4.80 to $5.20.

Shares of Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $802.45, but opened at $864.00. Seagate Technology shares last traded at $862.9050, with a volume of 615,029 shares trading hands.

Wall Street Analysts Forecast Growth

STX has been the subject of a number of recent research reports. Wall Street Zen upgraded shares of Seagate Technology from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Mizuho raised their price target on shares of Seagate Technology from $875.00 to $1,090.00 and gave the company an "outperform" rating in a report on Monday, June 8th. Bank of America lifted their price objective on shares of Seagate Technology from $1,000.00 to $1,150.00 and gave the stock a "buy" rating in a research report on Wednesday, July 1st. Fox Advisors lowered shares of Seagate Technology from an "overweight" rating to an "equal weight" rating in a research note on Monday, June 22nd. Finally, The Goldman Sachs Group increased their target price on shares of Seagate Technology from $385.00 to $700.00 and gave the company a "buy" rating in a research report on Wednesday, April 29th. Twenty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $898.52.

Seagate Technology Stock Up 9.6%

The company has a market capitalization of $197.20 billion, a price-to-earnings ratio of 83.31 and a beta of 2.04. 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 business's 50 day moving average is $886.38 and its 200 day moving average is $595.30.

Seagate Technology (NASDAQ:STX - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The data storage provider reported $4.10 earnings per share (EPS) for the quarter, beating 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 business had revenue of $3.11 billion for the quarter, compared to analyst estimates of $2.96 billion. During the same quarter in the prior year, the business posted $1.90 EPS. Seagate Technology's revenue for the quarter was up 44.1% compared to the same quarter last year. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. Sell-side analysts anticipate that Seagate Technology Holdings PLC will post 14.14 earnings per share for the current year.

Seagate Technology Dividend Announcement

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

Insider Transactions at Seagate Technology

In other news, EVP John Christopher Morris sold 5,626 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $738.37, for a total value of $4,154,069.62. Following the transaction, the executive vice president directly owned 11,954 shares of the company's stock, valued at approximately $8,826,474.98. This represents a 32.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 22,488 shares of the stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $774.22, for a total value of $17,410,659.36. Following the completion of the transaction, the chief financial officer directly owned 42,847 shares in the company, valued at $33,173,004.34. This represents a 34.42% 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. Over the last 90 days, insiders have sold 151,069 shares of company stock worth $126,191,753. Insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Seagate Technology

A number of large investors have recently bought and sold shares of the company. PFA Pension Forsikringsaktieselskab acquired a new position in Seagate Technology during the fourth quarter worth $23,882,000. New York State Teachers Retirement System grew its stake in shares of Seagate Technology by 5.0% in the fourth quarter. New York State Teachers Retirement System now owns 187,044 shares of the data storage provider's stock valued at $51,510,000 after buying an additional 8,991 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its holdings in shares of 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 holdings 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 during the period. Finally, Ritholtz Wealth Management lifted its stake in Seagate Technology by 64.5% during the 4th quarter. Ritholtz Wealth Management now owns 21,321 shares of the data storage provider's stock worth $5,872,000 after acquiring an additional 8,358 shares in the last quarter. Hedge funds and other 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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