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

Key Points

• Seagate Technology shares gapped up before trading, opening at $1,111 after closing at $993.25 and last trading around $1,026.23. The move reflects renewed investor enthusiasm for the stock.
• Shares are being boosted by AI-related storage demand, with Micron’s strong results helping lift memory and chip stocks and reinforcing Seagate’s role as an AI data-storage beneficiary. Commentary also points to improving revenue, margins, and pricing power.
• Analysts remain constructive, with several firms raising price targets and Seagate posting better-than-expected quarterly results of $4.10 EPS on $3.11 billion in revenue. The company also raised Q4 guidance, though the stock remains volatile after a prior selloff tied to AI spending concerns.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s share price gapped up prior to trading on Thursday . The stock had previously closed at $993.25, but opened at $1,111.00. Seagate Technology shares last traded at $1,026.2320, with a volume of 1,001,436 shares changing hands.

Key Stories Impacting Seagate Technology

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

• Positive Sentiment: Micron’s earnings beat and upbeat outlook sparked a broad rally in memory and chip stocks, lifting Seagate alongside peers such as Western Digital and SanDisk on expectations that AI infrastructure spending will keep driving storage demand. Micron and Qualcomm forecasts ignite $400 billion AI chip stock rally
• Positive Sentiment: Market commentary highlighted Seagate as an AI data-storage winner with improving revenue, margins, and pricing power, reinforcing the bullish thesis that the company is a key beneficiary of long-term AI storage demand. Seagate (STX) Gets Fresh Backing As An AI Data Storage Winner
• Neutral Sentiment: Analysts and investors continue to frame Seagate as a strong AI infrastructure play, but the stock has already had a huge run, so near-term moves may depend on whether the company can keep delivering on earnings and guidance. Is Seagate (STX) Turning AI-Fueled Pricing Power Into a More Durable Earnings Model?
• Negative Sentiment: Earlier this week, Seagate was hit by a sharp selloff tied to worries about leveraged AI spending, higher rate expectations, and weakness in South Korean chipmakers, showing the stock remains sensitive to shifts in sentiment across the AI hardware trade. Why Seagate (STX) Shares Are Getting Obliterated Today

Analysts Set New Price Targets

A number of brokerages recently issued reports on STX. Rosenblatt Securities increased their target price on Seagate Technology from $500.00 to $1,000.00 and gave the stock a "buy" rating in a report on Wednesday, April 29th. Wedbush upped their price objective on shares of Seagate Technology from $700.00 to $825.00 and gave the stock an "outperform" rating in a report on Monday, April 27th. Zacks Research upgraded shares of Seagate Technology from a "hold" rating to a "strong-buy" rating in a report on Friday, May 1st. Morgan Stanley boosted their target price on shares of Seagate Technology from $767.00 to $1,035.00 and gave the stock an "overweight" rating in a research report on Monday, June 15th. Finally, BNP Paribas Exane upped their target price on shares of Seagate Technology from $530.00 to $860.00 and gave the stock an "outperform" rating in a report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $831.79.

Seagate Technology Trading Up 2.8%

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 firm's fifty day moving average is $801.27 and its two-hundred day moving average is $521.30. The firm has a market capitalization of $229.02 billion, a PE ratio of 97.08 and a beta of 2.04.

Seagate Technology (NASDAQ:STX - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The data storage provider reported $4.10 EPS for the quarter, beating the consensus estimate of $3.51 by $0.59. The firm had revenue of $3.11 billion during the quarter, compared to analyst estimates of $2.96 billion. Seagate Technology had a net margin of 21.60% and a return on equity of 1,005.65%. The company's revenue for the quarter was up 44.1% on a year-over-year basis. During the same quarter last year, the business posted $1.90 EPS. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. On average, equities analysts predict that Seagate Technology Holdings PLC will post 14.14 EPS for the current fiscal year.

Seagate Technology Announces Dividend

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

Insider Activity at Seagate Technology

In other Seagate Technology news, EVP John Christopher Morris sold 1,364 shares of Seagate Technology stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $880.19, for a total value of $1,200,579.16. Following the sale, the executive vice president owned 12,088 shares of the company's stock, valued at approximately $10,639,736.72. The trade was a 10.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Shankar Arumugavelu sold 1,000 shares of the business's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $927.68, for a total transaction of $927,680.00. Following the completion of the transaction, the director owned 6,626 shares in the company, valued at approximately $6,146,807.68. The trade was a 13.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 141,069 shares of company stock worth $107,161,712. 0.79% of the stock is owned by company insiders.

Hedge Funds Weigh In On Seagate Technology

Institutional investors have recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership increased its position in Seagate Technology by 1,072.5% in the third quarter. Arrowstreet Capital Limited Partnership now owns 2,949,512 shares of the data storage provider's stock worth $696,262,000 after buying an additional 2,697,957 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its position in shares of Seagate Technology by 1,510.1% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 2,008,516 shares of the data storage provider's stock valued at $553,125,000 after buying an additional 1,883,769 shares during the last quarter. Norges Bank bought a new position in shares of Seagate Technology during the 4th quarter worth $498,363,000. Soroban Capital Partners LP boosted its position in Seagate Technology by 1,468.1% during the second quarter. Soroban Capital Partners LP now owns 1,417,600 shares of the data storage provider's stock worth $204,602,000 after purchasing an additional 1,327,197 shares during the period. Finally, Janus Henderson Group PLC boosted its position in Seagate Technology by 3,872.1% during the first quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider's stock worth $378,985,000 after purchasing an additional 943,170 shares during the period. 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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