Seagate Technology (NASDAQ:STX) Stock Price Down 6.5% - Here's What Happened

Key Points

• Seagate shares fell 6.5% to $794.65, with trading volume below the average session level.
• Analyst sentiment remains positive despite the decline: the stock has a consensus “Moderate Buy” rating and an average price target of $986, although Fox Advisors downgraded it to “Equal Weight.”
• Seagate recently beat quarterly expectations, reporting $5.71 in EPS and $3.63 billion in revenue, while revenue rose 48.5% year over year. The company also declared a quarterly dividend of $0.74 per share.

Shares of Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) were down 6.5% on Monday . The stock traded as low as $774.00 and last traded at $794.65. 3,118,753 shares changed hands during trading, a decline of 30% from the average session volume of 4,426,755 shares. The stock had previously closed at $850.00.

Analyst Ratings Changes

Several equities research analysts have commented on STX shares. Fox Advisors lowered Seagate Technology from an "overweight" rating to an "equal weight" rating in a research report on Monday, June 22nd. BNP Paribas Exane lifted their target price 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. Barclays boosted their target price on shares of Seagate Technology from $1,000.00 to $1,250.00 and gave the company an "overweight" rating in a research note on Thursday, July 30th. Melius Research began coverage on shares of Seagate Technology in a report on Monday, June 29th. They set a "buy" rating and a $1,600.00 price target on the stock. Finally, Evercore raised their price target on shares of Seagate Technology from $750.00 to $1,000.00 and gave the company an "outperform" rating in a research report on Tuesday, May 12th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $986.00.

Seagate Technology Stock Performance

The company has a market cap of $180.11 billion, a PE ratio of 57.25 and a beta of 2.06. The firm's fifty day moving average is $893.23 and its 200 day moving average is $683.35. The company has a current ratio of 1.67, a quick ratio of 1.17 and a debt-to-equity ratio of 1.56.

Seagate Technology (NASDAQ:STX - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.10 by $0.61. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. The business had revenue of $3.63 billion for the quarter, compared to the consensus estimate of $3.50 billion. During the same period last year, the firm posted $2.59 earnings per share. The company's revenue was up 48.5% compared to the same quarter last year. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. As a group, research analysts predict that Seagate Technology Holdings PLC will post 34.42 EPS for the current fiscal year.

Seagate Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Thursday, September 24th will be issued a $0.74 dividend. This represents a $2.96 annualized dividend and a yield of 0.4%. The ex-dividend date is Thursday, September 24th. Seagate Technology's payout ratio is presently 21.33%.

Insider Activity at Seagate Technology

In other Seagate Technology news, EVP Ban Seng Teh sold 7,361 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $920.80, for a total transaction of $6,778,008.80. Following the completion of the transaction, the executive vice president owned 2,931 shares of the company's stock, valued at $2,698,864.80. This represents a 71.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP John Christopher Morris sold 168 shares of Seagate Technology stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $817.76, for a total value of $137,383.68. Following the completion of the sale, the executive vice president directly owned 11,920 shares in the company, valued at $9,747,699.20. This represents a 1.39% 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 133,650 shares of company stock worth $116,077,574 in the last quarter. Corporate insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Seagate Technology

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Retirement Wealth Solutions LLC increased its position in Seagate Technology by 70.6% during the second quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider's stock worth $28,000 after buying an additional 12 shares in the last quarter. Bridgewater Advisors Inc. lifted its stake in shares of Seagate Technology by 0.9% during the 1st quarter. Bridgewater Advisors Inc. now owns 1,477 shares of the data storage provider's stock worth $579,000 after purchasing an additional 13 shares during the period. Annis Gardner Whiting Capital Advisors LLC grew its position in shares of Seagate Technology by 23.1% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider's stock valued at $31,000 after purchasing an additional 15 shares during the period. Blalock Williams LLC increased its stake in Seagate Technology by 2.6% in the second quarter. Blalock Williams LLC now owns 636 shares of the data storage provider's stock valued at $614,000 after purchasing an additional 16 shares during the last quarter. Finally, Beaumont Financial Advisors LLC lifted its position in Seagate Technology by 2.1% during the first quarter. Beaumont Financial Advisors LLC now owns 820 shares of the data storage provider's stock worth $321,000 after buying an additional 17 shares during the period. Institutional investors and hedge funds own 92.87% of the company's stock.

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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