Seagate Technology (NASDAQ:STX) Shares Up 7.8% Following Strong Earnings

Key Points

• Seagate shares jumped 7.8% after fiscal fourth-quarter results beat expectations, with EPS of $5.71 versus $5.10 expected and revenue of $3.63 billion, up 48.5% year over year.
• Management issued strong fiscal Q1 2027 guidance of $4.0–$4.2 billion in revenue and $7.10–$7.50 in EPS, citing continued AI infrastructure and cloud-storage demand.
• Analysts broadly remain bullish, with a consensus “Moderate Buy” rating and $957.20 price target, though the stock’s elevated valuation and volatility across the AI-storage sector could limit further gains.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s stock price rose 7.8% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $806.99 and last traded at $805.6840. 4,436,278 shares changed hands during mid-day trading, an increase of 2% from the average daily volume of 4,361,423 shares. The stock had previously closed at $747.30.

The data storage provider reported $5.71 EPS for the quarter, beating analysts' consensus estimates of $5.10 by $0.61. Seagate Technology had a net margin of 21.60% and a return on equity of 1,005.65%. The business had revenue of $3.63 billion for the quarter, compared to the consensus estimate of $3.50 billion. During the same quarter last year, the firm posted $2.59 EPS. The company's revenue for the quarter was up 48.5% on a year-over-year basis. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS.

Seagate Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th will be given a $0.74 dividend. This represents a $2.96 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, September 24th. Seagate Technology's payout ratio is presently 28.08%.

Seagate Technology News Summary

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

• Positive Sentiment: Seagate reported fiscal Q4 non-GAAP EPS of $5.71, exceeding the $5.10 consensus estimate, while revenue rose 48.5% year over year to $3.63 billion, above expectations of approximately $3.50 billion. Seagate fiscal fourth-quarter results
• Positive Sentiment: Management forecast fiscal Q1 2027 revenue of $4.0 billion to $4.2 billion and EPS of $7.10 to $7.50, well above analyst expectations of roughly $3.7 billion in revenue and $5.63 in EPS. The outlook points to continued momentum from AI infrastructure and cloud-storage demand. Seagate upbeat forecast
• Positive Sentiment: Investors highlighted record profitability, fiscal 2026 annual revenue growth of 34%, and record free cash flow of $3.1 billion. Seagate also cited durable data-center demand, progress with its HAMR and Mozaic storage technologies, margin expansion and strong cash generation. Seagate earnings call highlights
• Positive Sentiment: Several analysts raised their targets following the results: Wells Fargo to $1,180, Rosenblatt to $1,400, Citigroup to $1,300, Wedbush to $1,000 and Susquehanna to $875. Cantor Fitzgerald reaffirmed an overweight rating with a $1,300 target, reinforcing bullish expectations for AI-related storage growth.
• Neutral Sentiment: Seagate’s quarterly dividend was declared at $0.74 per share, payable October 7 to shareholders of record September 24. The approximately 0.4% yield is supportive but unlikely to be a major near-term trading catalyst.
• Negative Sentiment: The broader memory and storage sector remains volatile, with SanDisk and Micron falling amid concerns about AI-trade sustainability and potential valuation contraction. Seagate’s elevated valuation and the fact that its shares had already priced in significant optimism could limit further gains if future results or guidance fall short.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. Wall Street Zen upgraded shares of Seagate Technology from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Fox Advisors cut Seagate Technology from an "overweight" rating to an "equal weight" rating in a research note on Monday, June 22nd. Evercore raised their price target on shares of Seagate Technology from $750.00 to $1,000.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 12th. BNP Paribas Exane upped their price objective on shares of Seagate Technology from $530.00 to $860.00 and gave the company an "outperform" rating in a report on Wednesday, April 29th. Finally, Bank of America raised their target price on shares of Seagate Technology from $1,000.00 to $1,150.00 and gave the stock a "buy" rating in a report on Wednesday, July 1st. Twenty-two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $957.20.

Insider Activity at Seagate Technology

In related news, EVP John Christopher Morris sold 1,364 shares of the firm's 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 transaction, the executive vice president directly owned 12,088 shares of the company's stock, valued at approximately $10,639,736.72. This trade represents a 10.14% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Seng Teh sold 989 shares of the business's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $880.19, for a total value of $870,507.91. Following the sale, the executive vice president owned 4,290 shares of the company's stock, valued at approximately $3,776,015.10. This trade represents a 18.73% 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. Insiders sold a total of 151,069 shares of company stock worth $126,191,753 over the last 90 days. 0.79% of the stock is owned by insiders.

Institutional Trading of Seagate Technology

Several large investors have recently made changes to their positions in the company. Walker Asset Management LLC purchased a new position in Seagate Technology in the 2nd quarter valued at $338,000. Ballast Inc. purchased a new position in shares of Seagate Technology in the second quarter worth about $222,000. Regent Peak Wealth Advisors LLC acquired a new position in Seagate Technology during the second quarter worth about $354,000. Taylor & Morgan Wealth Management LLC boosted its position in Seagate Technology by 8.8% during the second quarter. Taylor & Morgan Wealth Management LLC now owns 603 shares of the data storage provider's stock worth $582,000 after acquiring an additional 49 shares during the last quarter. Finally, Nolet Wealth Management LLC purchased a new stake in Seagate Technology during the 2nd quarter valued at about $293,000. 92.87% of the stock is currently owned by hedge funds and other institutional investors.

Seagate Technology Stock Performance

The company has a current ratio of 1.33, a quick ratio of 0.85 and a debt-to-equity ratio of 3.16. The stock's fifty day simple moving average is $894.95 and its 200 day simple moving average is $618.98. The company has a market cap of $177.29 billion, a price-to-earnings ratio of 75.02 and a beta of 2.04.

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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