Seagate Technology (NASDAQ:STX) Stock Price Down 10% - Here's Why

Key Points

• Seagate Technology shares fell 10% on Thursday, with heavier-than-normal trading volume, as broader weakness in tech and AI-related stocks weighed on sentiment.
• Despite the drop, the company continues to benefit from AI-driven storage demand, and analysts remain broadly constructive with 22 Buy ratings, five Holds, and a consensus Moderate Buy rating.
• Seagate’s fundamentals were strong in its last quarter, posting $4.10 EPS and $3.11 billion in revenue that both beat estimates, while it also announced a quarterly dividend of $0.74 per share.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s stock price was down 10% during trading on Thursday . The stock traded as low as $739.47 and last traded at $745.49. Approximately 6,154,449 shares traded hands during mid-day trading, an increase of 44% from the average daily volume of 4,263,020 shares. The stock had previously closed at $828.30.

Key Headlines Impacting Seagate Technology

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

• Positive Sentiment: Seagate is being cited as a winner from AI-driven storage demand, with analysts and commentators pointing to strong revenue outlooks, margin expansion, and earnings growth potential. Everyone's Buying NVIDIA, but 2 Smaller AI Stocks Could Soar Higher
• Positive Sentiment: Coverage on the “AI memory war” says Seagate, Western Digital, and Sandisk have posted solid financial performance, and that Seagate remains well-positioned with mostly Buy-rated analyst sentiment. Which Storage Stock Is Best Positioned to Win the AI Memory War? (STX)
• Positive Sentiment: Investor commentary argues Seagate has a cost advantage in hyperscale storage, reinforcing the bull case for the hard-drive maker. I Keep Buying Seagate Because It Has One Massive Cost Advantage Others Don’t
• Neutral Sentiment: Seagate’s upcoming fiscal fourth-quarter and full-year 2026 earnings report on July 28 is keeping investors focused on the next catalyst. Seagate Technology to Report Fiscal Fourth Quarter and Fiscal Year 2026 Financial Results on July 28, 2026
• Negative Sentiment: Broader tech weakness and pressure on semiconductor and AI-related names are likely dragging on STX sentiment today, as investors de-risk from the sector. Sector Update: Tech Stocks Fall Thursday Afternoon
• Negative Sentiment: Commentary says the AI trade remains under pressure, with chip stocks broadly sliding, which adds headwinds for Seagate despite its storage-focused business model. The Chip-Stock Slide Isn't Over. The AI Trade Is Still Under Pressure.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Loop Capital upped their price target on shares of Seagate Technology from $950.00 to $1,140.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Sanford C. Bernstein lifted their price objective on Seagate Technology from $620.00 to $1,000.00 and gave the company an "outperform" rating in a research note on Wednesday, April 29th. BNP Paribas Exane boosted their target price on Seagate Technology from $530.00 to $860.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 29th. Morgan Stanley upped their target price on Seagate Technology from $767.00 to $1,035.00 and gave the stock an "overweight" rating in a research note on Monday, June 15th. Finally, Mizuho raised their price target on Seagate Technology from $875.00 to $1,090.00 and gave the company an "outperform" rating in a report on Monday, June 8th. Twenty-two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $898.52.

Seagate Technology Stock Performance

The company's 50-day moving average price is $887.33 and its two-hundred day moving average price is $584.82. 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 stock has a market cap of $167.16 billion, a PE ratio of 70.73 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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.51 by $0.59. The company had revenue of $3.11 billion during the quarter, compared to the consensus estimate of $2.96 billion. Seagate Technology had a net margin of 21.60% and a return on equity of 1,005.65%. The firm's revenue was up 44.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.90 EPS. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. On average, equities research analysts forecast that Seagate Technology Holdings PLC will post 14.14 EPS for the current year.

Seagate Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 7th. Stockholders of record on Wednesday, June 24th were issued a $0.74 dividend. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date 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 transaction of $4,154,069.62. Following the transaction, the executive vice president directly owned 11,954 shares in the company, valued at approximately $8,826,474.98. This represents a 32.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Seng Teh sold 8,003 shares of the firm's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $817.28, for a total value of $6,540,691.84. Following the transaction, the executive vice president directly owned 3,691 shares in the company, valued at approximately $3,016,580.48. This represents a 68.44% 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 have sold a total of 151,069 shares of company stock valued at $126,191,753 over the last quarter. 0.79% of the stock is owned by company insiders.

Institutional Investors Weigh In On Seagate Technology

Hedge funds have recently made changes to their positions in the business. Salomon & Ludwin LLC grew its holdings in shares of Seagate Technology by 124.4% during the 4th quarter. Salomon & Ludwin LLC now owns 92 shares of the data storage provider's stock valued at $27,000 after purchasing an additional 51 shares during the last quarter. Rakuten Securities Inc. lifted its stake in Seagate Technology by 884.2% in the second quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider's stock worth $27,000 after purchasing an additional 168 shares during the last quarter. Armstrong Advisory Group Inc. purchased a new stake in Seagate Technology during the fourth quarter valued at about $28,000. Avion Wealth boosted its position in Seagate Technology by 343.5% during the fourth quarter. Avion Wealth now owns 102 shares of the data storage provider's stock valued at $28,000 after buying an additional 79 shares during the period. Finally, Concord Wealth Partners purchased a new stake in Seagate Technology during the fourth quarter valued at about $28,000. 92.87% of the stock is currently owned by institutional investors.

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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