Seagate Technology (NASDAQ:STX) Stock Price Up 5.7% - Still a Buy?

Key Points

• Seagate Technology shares jumped 5.7% on Friday, with trading volume running well above average as investors reacted to renewed interest in the stock.
• Recent analyst commentary has been broadly bullish, citing Seagate as a potential beneficiary of AI-driven infrastructure spending and improved margins. Several firms raised price targets, and the consensus rating remains Moderate Buy with an average target of $898.52.
• The company’s latest earnings beat expectations, with EPS of $4.10 and revenue of $3.11 billion, plus year-over-year revenue growth of 44.1%. Seagate also recently paid a quarterly dividend and saw notable insider sales, while institutional investors continue to hold a large majority of shares.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s share price shot up 5.7% during trading on Friday . The stock traded as high as $808.65 and last traded at $787.66. Approximately 7,004,380 shares traded hands during trading, an increase of 64% from the average daily volume of 4,283,827 shares. The stock had previously closed at $745.49.

More Seagate Technology News

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

• Positive Sentiment: Analysts and market commentators highlighted Seagate as one of the memory/storage names best positioned to benefit from global AI infrastructure spending, citing rising demand for advanced storage and improving revenue and margin trends. 4 Top-Ranked Memory Stocks to Buy as AI Infrastructure Expands Globally
• Positive Sentiment: Additional bullish coverage said Seagate could be a smaller AI stock with room to run, pointing to strong execution, expanding margins, and earnings growth potential that may continue to attract investors. Everyone's Buying NVIDIA, but 2 Smaller AI Stocks Could Soar Higher
• Positive Sentiment: Seagate also received a favorable mention in an analyst blog round-up and in commentary describing the stock as benefiting from a strong cost advantage and AI-related storage demand. The Zacks Analyst Blog Highlights NVIDIA, AMD, Taiwan Semiconductor Manufacturing and Seagate
• Neutral Sentiment: Market-watch coverage noted Seagate underperformed some peers in recent trading sessions, suggesting investor enthusiasm has not been uniform across the storage group. Seagate Technology Holdings PLC stock underperforms Thursday when compared to competitors
• Neutral Sentiment: Broader tech and chip-stock weakness, including pressure on the semiconductor index, is still weighing on the sector and can limit gains for Seagate despite its company-specific positives. The SOX Index Fell 16% in Less Than a Month
• Negative Sentiment: Tech stocks were under pressure overall, which may have contributed to weakness in Seagate shares even as the company’s long-term fundamentals remain tied to AI-driven storage demand. Sector Update: Tech Stocks Fall Thursday Afternoon

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on STX. Sanford C. Bernstein upped their price target on shares of Seagate Technology from $620.00 to $1,000.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 29th. Fox Advisors cut Seagate Technology from an "overweight" rating to an "equal weight" rating in a report on Monday, June 22nd. UBS Group upped their target price on Seagate Technology from $515.00 to $545.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. JPMorgan Chase & Co. lifted their price target on Seagate Technology from $775.00 to $920.00 and gave the company an "overweight" rating in a research report on Thursday, June 11th. Finally, Barclays boosted their price objective on Seagate Technology from $750.00 to $1,000.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 27th. Twenty-two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $898.52.

Seagate Technology Stock Up 5.7%

The business has a 50-day moving average price of $886.91 and a 200-day moving average price of $588.06. The company has a market capitalization of $176.62 billion, a price-to-earnings ratio of 74.73 and a beta of 2.04. The company has a quick ratio of 0.85, a current ratio of 1.33 and a debt-to-equity ratio of 3.16.

Seagate Technology (NASDAQ:STX - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The data storage provider reported $4.10 earnings per share for the quarter, beating analysts' consensus estimates of $3.51 by $0.59. The business had revenue of $3.11 billion during the quarter, compared to analyst estimates of $2.96 billion. Seagate Technology had a return on equity of 1,005.65% and a net margin of 21.60%.Seagate Technology's revenue for the quarter was up 44.1% on a year-over-year basis. During the same quarter last year, the company posted $1.90 EPS. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. As a group, equities analysts anticipate that Seagate Technology Holdings PLC will post 14.14 earnings per share for the current fiscal year.

Seagate Technology Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, July 7th. Stockholders of record on Wednesday, June 24th were issued a dividend of $0.74 per share. The ex-dividend date was Wednesday, June 24th. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.4%. Seagate Technology's payout ratio is currently 28.08%.

Insider Activity

In related news, EVP John Christopher Morris sold 1,364 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $880.19, for a total value of $1,200,579.16. Following the completion of the transaction, the executive vice president owned 12,088 shares of the company's stock, valued at approximately $10,639,736.72. This trade represents a 10.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 903 shares of Seagate Technology stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $880.19, for a total transaction of $794,811.57. Following the transaction, the chief financial officer owned 42,860 shares in the company, valued at approximately $37,724,943.40. The trade was a 2.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 151,069 shares of company stock worth $126,191,753 in the last quarter. Insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of STX. Massachusetts Financial Services Co. MA boosted its position in Seagate Technology by 1,510.1% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 2,008,516 shares of the data storage provider's stock worth $553,125,000 after acquiring an additional 1,883,769 shares during the period. Norges Bank purchased a new stake in shares of Seagate Technology in the fourth quarter worth approximately $498,363,000. Soroban Capital Partners LP lifted its position in shares of Seagate Technology by 1,468.1% in the second 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 holdings in shares of Seagate Technology by 3,872.1% during the first quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider's stock worth $378,985,000 after purchasing an additional 943,170 shares during the period. Finally, Deutsche Bank AG boosted its holdings in shares of Seagate Technology by 102.0% during the fourth quarter. Deutsche Bank AG now owns 1,599,962 shares of the data storage provider's stock worth $440,614,000 after purchasing an additional 807,962 shares during the period. Hedge funds and other institutional investors 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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