Seagate Technology (NASDAQ:STX) Stock Price Down 7.9% - Here's What Happened

Key Points

• Seagate shares fell 7.9% to about $832.56 in heavy trading, with roughly 5.8 million shares changing hands—30% above average volume.
• The company recently beat quarterly expectations, reporting $5.71 in EPS versus $5.10 expected and $3.63 billion in revenue, up 48.5% year over year. Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $986 price target.
• Seagate declared a quarterly dividend of $0.74 per share, implying a 0.4% yield, while insiders sold approximately $116.1 million of stock during the last quarter under pre-arranged trading plans.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) was down 7.9% during mid-day trading on Wednesday . The company traded as low as $829.11 and last traded at $832.56. Approximately 5,802,045 shares traded hands during mid-day trading, an increase of 30% from the average daily volume of 4,451,491 shares. The stock had previously closed at $903.68.

Analyst Ratings Changes

A number of brokerages recently commented on STX. Melius Research initiated coverage on Seagate Technology in a research note on Monday, June 29th. They set a "buy" rating and a $1,600.00 price objective for the company. UBS Group raised their target price on Seagate Technology from $515.00 to $545.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. The Goldman Sachs Group boosted their price target on shares of Seagate Technology from $385.00 to $700.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Rosenblatt Securities increased their price objective on shares of Seagate Technology from $1,300.00 to $1,400.00 and gave the stock a "buy" rating in a report on Wednesday, July 29th. Finally, Fox Advisors downgraded shares of Seagate Technology from an "overweight" rating to an "equal weight" rating in a research report on Monday, June 22nd. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $986.00.

Seagate Technology Stock Down 7.9%

The firm has a 50 day simple moving average of $894.87 and a two-hundred day simple moving average of $674.58. The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.17 and a current ratio of 1.67. The stock has a market cap of $188.70 billion, a P/E ratio of 59.98 and a beta of 2.06.

Seagate Technology (NASDAQ:STX - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.10 by $0.61. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%.The company had revenue of $3.63 billion during the quarter, compared to analysts' expectations of $3.50 billion. During the same quarter in the prior year, the business posted $2.59 earnings per share. The company's revenue for the quarter 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. Equities research analysts predict that Seagate Technology Holdings PLC will post 34.42 earnings per share for the current year.

Seagate Technology Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th will be given a dividend of $0.74 per share. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, September 24th. Seagate Technology's payout ratio is 21.33%.

Insider Buying and Selling

In other news, EVP John Christopher Morris sold 168 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $817.76, for a total value of $137,383.68. Following the completion of the transaction, the executive vice president directly owned 11,920 shares in the company, valued at $9,747,699.20. This trade represents a 1.39% decrease in their ownership of the stock. The transaction 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, CEO William D. Mosley sold 17,080 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $827.30, for a total value of $14,130,284.00. Following the sale, the chief executive officer directly owned 295,517 shares in the company, valued at approximately $244,481,214.10. The trade was a 5.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 133,650 shares of company stock worth $116,077,574. Company insiders own 0.79% of the company's stock.

Institutional Trading of Seagate Technology

Institutional investors have recently modified their holdings of the company. Wellington Management Group LLP lifted its holdings in shares of Seagate Technology by 2,655.9% during the second quarter. Wellington Management Group LLP now owns 2,414,136 shares of the data storage provider's stock valued at $2,329,641,000 after purchasing an additional 2,326,538 shares during the last quarter. Norges Bank acquired a new position in Seagate Technology in the 4th quarter worth approximately $498,363,000. Soroban Capital Partners LP grew its position in Seagate Technology by 1,468.1% during the 2nd 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 in the last quarter. Janus Henderson Group PLC boosted its position in shares of Seagate Technology by 3,872.1% in the first quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider's stock worth $378,985,000 after buying an additional 943,170 shares during the period. Finally, Deutsche Bank AG boosted its position in shares of Seagate Technology by 102.0% in the fourth quarter. Deutsche Bank AG now owns 1,599,962 shares of the data storage provider's stock worth $440,614,000 after buying an additional 807,962 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source