Seagate Technology (NASDAQ:STX) Stock Price Expected to Rise, Bank of America Analyst Says

Key Points

• Bank of America raised its target price for Seagate Technology stock from $170.00 to $215.00, maintaining a "buy" rating amid strong performance indicators.
• Seagate's stock has shown significant activity, trading up 7.6% recently, with a market capitalization of $44.91 billion and a P/E ratio of 31.18.
• The company announced a $5 billion share buyback program, signaling management's belief that the stock is undervalued.

Seagate Technology (NASDAQ:STX - Get Free Report) had its target price increased by equities researchers at Bank of America from $170.00 to $215.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has a "buy" rating on the data storage provider's stock. Bank of America's target price would indicate a potential upside of 1.96% from the company's previous close.

STX has been the subject of a number of other research reports. Susquehanna raised their target price on Seagate Technology from $68.00 to $80.00 and gave the company a "negative" rating in a report on Wednesday, July 30th. Benchmark raised their target price on Seagate Technology from $128.00 to $165.00 and gave the company a "buy" rating in a report on Wednesday, July 30th. Wall Street Zen downgraded Seagate Technology from a "buy" rating to a "hold" rating in a report on Friday, May 30th. Morgan Stanley raised their target price on Seagate Technology from $167.00 to $168.00 and gave the company an "overweight" rating in a report on Wednesday, July 30th. Finally, UBS Group raised their price target on Seagate Technology from $85.00 to $155.00 and gave the company a "neutral" rating in a research report on Monday, July 21st. Fourteen research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $160.89.

Seagate Technology Trading Up 7.6%

Shares of Seagate Technology stock traded up $14.88 during trading hours on Monday, hitting $210.87. 5,326,806 shares of the company were exchanged, compared to its average volume of 3,866,839. Seagate Technology has a 1 year low of $63.19 and a 1 year high of $214.20. The business has a 50-day moving average of $159.75 and a 200-day moving average of $121.86. The stock has a market capitalization of $44.91 billion, a price-to-earnings ratio of 31.18, a P/E/G ratio of 1.21 and a beta of 1.53.

Seagate Technology (NASDAQ:STX - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The data storage provider reported $2.59 EPS for the quarter, topping the consensus estimate of $2.45 by $0.14. Seagate Technology had a negative return on equity of 169.60% and a net margin of 16.15%.The business had revenue of $2.44 billion during the quarter, compared to analysts' expectations of $2.40 billion. During the same quarter in the prior year, the business earned $1.05 earnings per share. The company's quarterly revenue was up 29.5% compared to the same quarter last year. Seagate Technology has set its Q1 2026 guidance at 2.100-2.500 EPS. As a group, research analysts anticipate that Seagate Technology will post 6.83 earnings per share for the current fiscal year.

Seagate Technology announced that its board has approved a share repurchase program on Thursday, May 22nd that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the data storage provider to buy up to 21.6% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling

In related news, CEO William D. Mosley sold 20,000 shares of Seagate Technology stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $153.75, for a total transaction of $3,075,000.00. Following the completion of the sale, the chief executive officer owned 478,912 shares in the company, valued at approximately $73,632,720. This trade represents a 4.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Ban Seng Teh sold 1,724 shares of Seagate Technology stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $151.61, for a total value of $261,375.64. Following the sale, the executive vice president owned 6,147 shares of the company's stock, valued at approximately $931,946.67. This represents a 21.90% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 56,479 shares of company stock worth $8,483,633. 0.81% of the stock is owned by company insiders.

Institutional Trading of Seagate Technology

A number of hedge funds have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. lifted its stake in shares of Seagate Technology by 12.9% in the 1st quarter. JPMorgan Chase & Co. now owns 18,920,792 shares of the data storage provider's stock valued at $1,607,321,000 after purchasing an additional 2,161,191 shares in the last quarter. Norges Bank acquired a new position in Seagate Technology during the 2nd quarter worth approximately $197,027,000. Boston Partners acquired a new position in Seagate Technology during the 2nd quarter worth approximately $193,500,000. Soroban Capital Partners LP lifted 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 acquiring an additional 1,327,197 shares in the last quarter. Finally, Wellington Management Group LLP lifted its position in Seagate Technology by 3,339.4% during the 1st quarter. Wellington Management Group LLP now owns 933,996 shares of the data storage provider's stock worth $79,343,000 after acquiring an additional 906,840 shares in the last quarter. 92.87% of the stock is owned by institutional investors and hedge funds.

Seagate Technology Company Profile

Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives.

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