Seagate Technology (NASDAQ:STX) Stock Price Up 2.2% - Here's What Happened

Key Points

• Seagate shares rose 2.2% to $994.79 in midday trading, supported by strength across AI and memory stocks and expectations for sustained data-storage demand from AI infrastructure.
• The company recently exceeded quarterly expectations, reporting $5.71 EPS versus a $5.10 consensus and $3.63 billion in revenue versus $3.50 billion expected; revenue increased 48.5% year over year, with upbeat forward guidance.
• Analysts maintain a generally bullish view, with a “Moderate Buy” consensus and price targets as high as $1,600, but Seagate’s sharp rally, elevated 71.67 P/E ratio and recent insider selling leave the stock exposed to profit-taking if AI momentum weakens.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s share price traded up 2.2% during mid-day trading on Monday . The stock traded as high as $1,013.99 and last traded at $994.79. 4,282,891 shares traded hands during mid-day trading, a decline of 4% from the average daily volume of 4,441,734 shares. The stock had previously closed at $973.44.

Key Headlines Impacting Seagate Technology

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

• Positive Sentiment: Seagate is benefiting from broad strength in AI and memory stocks, with SanDisk, Micron, Marvell and Coherent also advancing. The sector-wide rally is reinforcing expectations for sustained demand for storage tied to AI infrastructure. Sandisk, Micron, Coherent, Boeing, Apple, Amazon, and More Stocks That Explain Today’s Market
• Positive Sentiment: Recent commentary highlights Seagate’s strong six-month performance, including a roughly 134% gain and a new 52-week high, supported by solid quarterly results. The company recently exceeded earnings and revenue expectations, while reporting substantial year-over-year revenue growth and upbeat forward guidance. 3 Reasons We Love Seagate (STX)
• Positive Sentiment: Growth-focused analysis argues that Seagate’s above-average financial growth could support further outperformance, strengthening the bullish narrative around the stock. 3 Reasons Why Growth Investors Shouldn't Overlook Seagate (STX)
• Neutral Sentiment: Broader markets are relatively cautious ahead of retail earnings and amid uncertainty over the Federal Reserve’s next policy move. Those factors could influence high-beta technology shares such as STX even as storage-sector sentiment remains strong. Nasdaq Treads Water as Investors Brace for a Busy Week of Retail Results
• Negative Sentiment: After its sharp run-up, Seagate faces valuation and profit-taking risk. The stock’s elevated earnings multiple and position near its recent highs leave it vulnerable to a pullback if AI-related momentum slows or market conditions deteriorate.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on STX. Melius Research initiated coverage on shares of Seagate Technology in a research note on Monday, June 29th. They set a "buy" rating and a $1,600.00 price target for the company. Morgan Stanley boosted their price objective on shares of Seagate Technology from $1,035.00 to $1,187.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 29th. BNP Paribas Exane raised 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. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Seagate Technology in a report on Wednesday, June 24th. Finally, UBS Group increased their price target on Seagate Technology from $515.00 to $545.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $986.00.

Seagate Technology Stock Performance

The company has a debt-to-equity ratio of 1.56, a current ratio of 1.67 and a quick ratio of 1.17. The stock has a fifty day simple moving average of $891.36 and a two-hundred day simple moving average of $666.95. The firm has a market capitalization of $225.46 billion, a P/E ratio of 71.67 and a beta of 2.06.

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

Seagate Technology Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Thursday, September 24th will be paid a dividend of $0.74 per share. The ex-dividend date of this dividend is Thursday, September 24th. This represents a $2.96 annualized dividend and a yield of 0.3%. Seagate Technology's dividend payout ratio is currently 21.33%.

Insiders Place Their Bets

In other news, CFO Gianluca Romano sold 880 shares of the stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $845.12, for a total transaction of $743,705.60. Following the transaction, the chief financial officer owned 20,663 shares of the company's stock, valued at $17,462,714.56. This represents a 4.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $827.30, for a total transaction of $14,130,284.00. Following the transaction, the chief executive officer directly owned 295,517 shares in the company, valued at $244,481,214.10. This trade represents a 5.46% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 163,650 shares of company stock valued at $138,616,274. 0.79% of the stock is currently owned by corporate insiders.

Institutional Trading of Seagate Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC grew its stake in Seagate Technology by 168.0% in the first quarter. Integrated Wealth Concepts LLC now owns 7,177 shares of the data storage provider's stock valued at $610,000 after acquiring an additional 4,499 shares during the period. Sivia Capital Partners LLC bought a new position in shares of Seagate Technology in the 2nd quarter worth $262,000. Cerity Partners LLC lifted its holdings in shares of Seagate Technology by 25.8% in the 2nd quarter. Cerity Partners LLC now owns 36,682 shares of the data storage provider's stock worth $5,294,000 after purchasing an additional 7,517 shares in the last quarter. Sei Investments Co. grew its position in Seagate Technology by 64.8% in the 2nd quarter. Sei Investments Co. now owns 8,543 shares of the data storage provider's stock valued at $1,233,000 after purchasing an additional 3,358 shares during the period. Finally, The Manufacturers Life Insurance Company increased its stake in Seagate Technology by 0.4% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 127,887 shares of the data storage provider's stock valued at $18,458,000 after purchasing an additional 462 shares in the last quarter. 92.87% of the stock is owned by institutional investors.

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.

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