Seagate Technology (NASDAQ:STX) Trading 2.1% Higher - Should You Buy?

Key Points

• Seagate shares rose 2.1% to $850.24, while analysts maintained a “Moderate Buy” consensus with an average price target of $986.
• The company exceeded quarterly expectations, reporting $5.71 in EPS versus the $5.10 estimate and $3.63 billion in revenue, up 48.5% year over year.
• Seagate declared a quarterly dividend of $0.74, equivalent to a $2.96 annualized payout and a 0.3% yield; meanwhile, insiders sold 133,650 shares worth approximately $116.1 million over the past 90 days.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) shares shot up 2.1% during trading on Thursday . The stock traded as high as $869.71 and last traded at $850.24. Approximately 3,233,244 shares traded hands during trading, a decline of 27% from the average daily volume of 4,445,080 shares. The stock had previously closed at $832.56.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Wedbush raised their price target on shares of Seagate Technology from $825.00 to $1,000.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. JPMorgan Chase & Co. lifted their target price on shares of Seagate Technology from $1,095.00 to $1,240.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 29th. Evercore increased their price target on Seagate Technology from $750.00 to $1,000.00 and gave the company an "outperform" rating in a report on Tuesday, May 12th. Morgan Stanley lifted their price objective on Seagate Technology from $1,035.00 to $1,187.00 and gave the stock an "overweight" rating in a report on Wednesday, July 29th. Finally, BNP Paribas Exane increased their target price on Seagate Technology from $530.00 to $860.00 and gave the company an "outperform" rating in a report 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 company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $986.00.

Seagate Technology Stock Up 2.1%

The company's 50 day moving average price is $895.20 and its two-hundred day moving average price is $677.30. The company has a current ratio of 1.67, a quick ratio of 1.17 and a debt-to-equity ratio of 1.56. The firm has a market cap of $192.70 billion, a PE ratio of 61.26 and a beta of 2.06.

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

Seagate Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th will be paid a $0.74 dividend. 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 dividend payout ratio (DPR) is 21.33%.

Insider Activity

In related news, CEO William D. Mosley sold 20,657 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $910.48, for a total transaction of $18,807,785.36. Following the completion of the transaction, the chief executive officer directly owned 320,860 shares in the company, valued at approximately $292,136,612.80. The trade was a 6.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 14,091 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $811.25, for a total transaction of $11,431,323.75. Following the completion of the sale, the chief financial officer directly owned 21,543 shares of the company's stock, valued at $17,476,758.75. This represents a 39.54% decrease in their ownership of the stock. 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. Insiders have sold a total of 133,650 shares of company stock valued at $116,077,574 in the last ninety days. Corporate insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of STX. Headlands Technologies LLC bought a new position in Seagate Technology in the 2nd quarter worth $580,000. Ancora Advisors LLC raised its holdings in Seagate Technology by 76.4% during the second quarter. Ancora Advisors LLC now owns 575 shares of the data storage provider's stock valued at $555,000 after acquiring an additional 249 shares during the period. Wedbush Securities Inc. lifted its position in shares of Seagate Technology by 24.4% in the second quarter. Wedbush Securities Inc. now owns 5,280 shares of the data storage provider's stock valued at $5,095,000 after acquiring an additional 1,036 shares in the last quarter. New Mexico Educational Retirement Board boosted its stake in shares of Seagate Technology by 9.0% in the second quarter. New Mexico Educational Retirement Board now owns 10,850 shares of the data storage provider's stock worth $10,470,000 after acquiring an additional 900 shares during the period. Finally, Ferguson Wellman Capital Management Inc. bought a new position in shares of Seagate Technology in the second quarter worth about $819,000. Hedge funds and other institutional investors own 92.87% of the company's stock.

Seagate Technology Company Profile

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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