Seagate Technology (NASDAQ:STX) Shares Up 11.1% After Strong Earnings

Key Points

• 11.1% jump after Q3 beat: Seagate reported EPS of $4.10 vs. $3.47 expected and revenue of $3.11B (up 44.1% YoY), and guided Q4 EPS to 4.80–5.20 while citing AI-driven demand, record margins and near-$1B free cash flow.
• Dozens of brokerages raised price targets — including Rosenblatt to $1,000, JPMorgan to $775 and Morgan Stanley to $767 — signaling a re‑rating tied to anticipated AI/data‑center storage spending that helped drive the rally.
• Seagate declared a quarterly dividend of $0.74 (annualized $2.96, ~0.5% yield); meanwhile insiders have sold stock recently (111,550 shares, ~$46.5M over 90 days) and institutional ownership is about 92.9%.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) shot up 11.1% on Wednesday following a stronger than expected earnings report. The company traded as high as $697.00 and last traded at $643.30. 10,806,099 shares changed hands during trading, an increase of 161% from the average session volume of 4,135,762 shares. The stock had previously closed at $579.03.

The data storage provider reported $4.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.47 by $0.63. The business had revenue of $3.11 billion for the quarter, compared to the consensus estimate of $2.94 billion. Seagate Technology had a net margin of 19.59% and a negative return on equity of 936.38%. Seagate Technology's quarterly revenue was up 44.1% on a year-over-year basis. During the same quarter last year, the company posted $1.90 earnings per share. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS.

Seagate Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Wednesday, June 24th will be paid a $0.74 dividend. The ex-dividend date is Wednesday, June 24th. This represents a $2.96 annualized dividend and a dividend yield of 0.5%. Seagate Technology's dividend payout ratio (DPR) is presently 33.48%.

Seagate Technology News Summary

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

• Positive Sentiment: Q3 results beat and upbeat guidance: Seagate reported $4.10 EPS and $3.11B revenue, far above expectations, cited sustained AI-related demand, record margins and near-$1B free cash flow, and guided Q4 revenue and EPS above consensus — a core reason shares are higher today. Business Wire: Q3 Results
• Positive Sentiment: Widespread analyst upgrades and huge target lifts: Dozens of firms raised targets (examples: Rosenblatt to $1,000, JPMorgan to $775, Morgan Stanley to $767, Barclays to $750, TD Cowen to $850, BNP to $860), signaling a fresh re-rating of Seagate on durable AI/data-center demand. The volume of bullish revises amplified the rally. 247wallst: Rosenblatt $1,000 PT
• Positive Sentiment: Market/sector momentum around AI storage: Multiple outlets tie Seagate’s beat to a broader memory/storage rally as investors position for AI infrastructure spending, lifting peers as well. Reuters: Storage stocks jump
• Neutral Sentiment: Dividend maintained/announced: Seagate declared a quarterly dividend (record June 24 / pay July 7) — a modest yield that supports income investors but is unlikely to be the primary driver of today's move.
• Neutral Sentiment: Sector commentary and investor enthusiasm: Coverage in Investopedia and other outlets highlights the AI/memory theme that’s lifting many names; useful context but not company-specific news. Investopedia: Memory stocks
• Negative Sentiment: Some analyst targets still below the rally price: A few shops (e.g., UBS, Susquehanna) have targets that sit below the current intraday level, creating potential resistance or profit-taking points for traders. Benzinga: UBS / Susquehanna notes

Analyst Ratings Changes

Several brokerages have recently issued reports on STX. Bank of America raised their price objective on shares of Seagate Technology from $700.00 to $840.00 and gave the stock a "buy" rating in a research note on Monday. Mizuho raised their price objective on shares of Seagate Technology from $565.00 to $700.00 and gave the stock an "outperform" rating in a research note on Wednesday. Loop Capital raised their price objective on shares of Seagate Technology from $700.00 to $800.00 and gave the stock a "buy" rating in a research note on Thursday, April 23rd. Barclays raised their price objective on shares of Seagate Technology from $625.00 to $750.00 and gave the stock an "overweight" rating in a research note on Wednesday. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Seagate Technology in a research report on Friday, March 27th. Twenty equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $680.79.

Insider Buying and Selling

In other Seagate Technology news, CEO William D. Mosley sold 24,584 shares of Seagate Technology stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $406.77, for a total transaction of $10,000,033.68. Following the completion of the transaction, the chief executive officer directly owned 375,591 shares of the company's stock, valued at approximately $152,779,151.07. This trade represents a 6.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Kian Fatt Chong sold 5,846 shares of Seagate Technology stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $416.48, for a total value of $2,434,742.08. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 111,550 shares of company stock valued at $46,476,441 in the last ninety days. Insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in shares of Seagate Technology by 1.6% during the third quarter. Vanguard Group Inc. now owns 28,140,287 shares of the data storage provider's stock valued at $6,642,796,000 after acquiring an additional 442,749 shares during the period. State Street Corp lifted its holdings in shares of Seagate Technology by 1.0% during the fourth quarter. State Street Corp now owns 9,370,805 shares of the data storage provider's stock valued at $2,587,535,000 after acquiring an additional 94,527 shares during the period. Morgan Stanley raised its holdings in shares of Seagate Technology by 5.1% in the fourth quarter. Morgan Stanley now owns 5,317,516 shares of the data storage provider's stock valued at $1,464,391,000 after buying an additional 258,151 shares during the last quarter. WCM Investment Management LLC bought a new position in shares of Seagate Technology in the third quarter valued at about $1,187,621,000. Finally, Geode Capital Management LLC raised its holdings in shares of Seagate Technology by 5.0% in the fourth quarter. Geode Capital Management LLC now owns 4,896,815 shares of the data storage provider's stock valued at $1,343,683,000 after buying an additional 234,436 shares during the last quarter. 92.87% of the stock is owned by institutional investors.

Seagate Technology Price Performance

The stock has a fifty day moving average of $444.55 and a 200-day moving average of $351.81. The company has a quick ratio of 0.72, a current ratio of 1.12 and a debt-to-equity ratio of 7.63. The firm has a market capitalization of $140.29 billion, a P/E ratio of 72.77, a PEG ratio of 0.99 and a beta of 1.61.

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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