Seagate Technology (NASDAQ:STX) Trading 1.8% Higher - Time to Buy?

Key Points

• Seagate shares rose 1.8% to $852.95 amid strong trading volume, while analysts maintained a generally bullish outlook. The stock carries a “Moderate Buy” consensus rating and an average price target of $986, with several firms recently raising their targets.
• Seagate’s latest quarterly results exceeded expectations, with revenue up 48.5% year over year to $3.63 billion and EPS of $5.71 versus the $5.10 consensus estimate. AI-driven storage demand and improved HDD pricing power are supporting the growth outlook.
• Despite positive fundamentals, the stock faces risks from elevated valuation and weaker-than-expected guidance from storage peers, which has pressured the broader sector. Insiders have also sold shares under pre-arranged trading plans, though those transactions offer limited insight into management’s current outlook.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s stock price was up 1.8% during trading on Thursday . The company traded as high as $874.97 and last traded at $852.95. 5,551,559 shares traded hands during mid-day trading, an increase of 25% from the average daily volume of 4,432,459 shares. The stock had previously closed at $837.66.

Trending Headlines about Seagate Technology

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

• Positive Sentiment: Analysts raised Seagate’s fair-value estimate. Updated assumptions for hard-disk-drive pricing power, AI-driven storage demand, margins and cash generation lifted the estimate from $959.48 to $1,115.87, suggesting substantial potential upside from recent trading levels. Seagate Stock Fair Value Rises
• Positive Sentiment: STX remains a favored AI-growth idea. Zacks included Seagate among its five top-ranked growth stocks for August, citing AI-driven demand and the ongoing market rally. The company’s latest quarter also showed strong momentum, with revenue up 48.5% year over year and EPS of $5.71 beating the $5.10 consensus estimate. Top-Ranked Growth Stocks for August
• Neutral Sentiment: Insiders reported planned stock sales. CEO William Mosley sold 30,000 shares for roughly $24.5 million, while EVP John Christopher Morris sold 168 shares. Because the transactions were executed under pre-arranged Rule 10b5-1 plans, they provide limited insight into management’s current view of STX’s prospects. Seagate Insider Sale Filing
• Negative Sentiment: Disappointing peer guidance triggered sector-wide selling. Sandisk and Western Digital delivered earnings beats, but their outlooks failed to meet investors’ exceptionally high expectations. The reaction pushed memory and storage shares—including Seagate, Micron, SK Hynix and Samsung—lower as investors reassessed AI-demand growth and elevated valuations. Sandisk Outlook Shook AI Memory Trade

Analyst Ratings Changes

A number of brokerages have commented on STX. UBS Group upped their price objective on shares of Seagate Technology from $515.00 to $545.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Mizuho raised their price target on Seagate Technology from $875.00 to $1,090.00 and gave the stock an "outperform" rating in a research note on Monday, June 8th. TD Cowen boosted their price target on Seagate Technology from $850.00 to $1,000.00 and gave the stock a "buy" rating in a research report on Wednesday, July 29th. Wall Street Zen upgraded Seagate Technology from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 1st. Finally, Wells Fargo & Company upped their price target on shares of Seagate Technology from $1,100.00 to $1,180.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $986.00.

Seagate Technology Stock Performance

The company's 50 day moving average is $896.61 and its 200-day moving average is $640.99. The company has a quick ratio of 1.17, a current ratio of 1.67 and a debt-to-equity ratio of 1.56. The firm has a market capitalization of $191.26 billion, a P/E ratio of 61.45 and a beta of 2.06.

Seagate Technology (NASDAQ:STX - Get Free Report) last posted its earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share for the quarter, topping analysts' consensus estimates of $5.10 by $0.61. The company had revenue of $3.63 billion for the quarter, compared to analyst estimates of $3.50 billion. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. The firm's revenue was up 48.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.59 EPS. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. As a group, equities analysts anticipate that Seagate Technology Holdings PLC will post 33.08 EPS for the current year.

Seagate Technology Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders 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 dividend yield of 0.3%. Seagate Technology's payout ratio is 21.33%.

Insiders Place Their Bets

In other news, CEO William D. Mosley sold 30,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $751.29, for a total value of $22,538,700.00. Following the completion of the transaction, the chief executive officer owned 339,591 shares in the company, valued at $255,131,322.39. This trade represents a 8.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Seng Teh sold 8,003 shares of the company's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $817.28, for a total value of $6,540,691.84. Following the completion of the sale, the executive vice president directly owned 3,691 shares in the company, valued at approximately $3,016,580.48. The trade was a 68.44% 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. Over the last three months, insiders have sold 149,638 shares of company stock worth $126,692,095. Insiders own 0.79% of the company's stock.

Hedge Funds Weigh In On Seagate Technology

A number of institutional investors and hedge funds have recently made changes to their positions in STX. State Street Corp grew its position in shares of Seagate Technology by 1.0% during the 4th quarter. State Street Corp now owns 9,370,805 shares of the data storage provider's stock valued at $2,587,535,000 after acquiring an additional 94,527 shares during the period. Morgan Stanley increased its holdings in Seagate Technology by 5.1% in the 4th quarter. Morgan Stanley now owns 5,317,516 shares of the data storage provider's stock worth $1,464,391,000 after acquiring an additional 258,151 shares in the last quarter. Geode Capital Management LLC raised its stake in Seagate Technology by 5.0% during the 4th quarter. Geode Capital Management LLC now owns 4,896,815 shares of the data storage provider's stock worth $1,343,683,000 after acquiring an additional 234,436 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in Seagate Technology by 8.3% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,193,063 shares of the data storage provider's stock valued at $879,338,000 after purchasing an additional 243,551 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its position in shares of Seagate Technology by 1,510.1% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 2,008,516 shares of the data storage provider's stock worth $553,125,000 after purchasing an additional 1,883,769 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.

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