Seagate Technology (NASDAQ:STX) Trading 5.7% Higher - Still a Buy?

Key Points

• Seagate shares rose 5.7% to $973.44 in mid-day trading, with volume 18% above average.
• The company reported fiscal 2026 revenue of $3.63 billion, up 48.5% year over year, and adjusted EPS of $5.71, beating estimates. Management guided to fiscal Q1 2027 EPS of $7.10–$7.50, supported by strong AI-related storage demand and expanding margins.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $986 price target, though Seagate’s elevated valuation, cyclical industry exposure and recent insider selling may temper the bullish outlook.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) shot up 5.7% during mid-day trading on Friday . The stock traded as high as $990.61 and last traded at $973.44. Approximately 5,233,626 shares changed hands during mid-day trading, an increase of 18% from the average session volume of 4,439,522 shares. The stock had previously closed at $921.37.

More Seagate Technology News

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

• Positive Sentiment: Seagate finished fiscal 2026 ahead of expectations, with revenue of $3.63 billion, adjusted EPS of $5.71, and year-over-year revenue growth of 48.5%. Management also guided to fiscal first-quarter 2027 EPS of $7.10 to $7.50, reinforcing expectations for continued earnings growth. How Seagate’s Strong Fiscal 2026 Beat and HAMR Momentum May Impact Seagate Technology Investors
• Positive Sentiment: Non-GAAP gross margin expanded for the 13th consecutive quarter, while quarterly free cash flow reached its strongest level in more than a decade. These trends suggest improving operating leverage and financial flexibility. Seagate Technology Holdings Following Strong FY2026 Results Looks Undervalued By The Narrative
• Positive Sentiment: AI-related storage demand, supply agreements extending beyond 2028, and Seagate’s HAMR-based Mozaic platform are viewed as catalysts for planned mid-20% exabyte growth. Analysts see the company as a potential underappreciated AI-infrastructure beneficiary. The AI Stock Everyone Knows But Few See Becoming a Future Winner
• Positive Sentiment: Upward earnings-estimate revisions are adding to the bullish case, as analysts anticipate that stronger storage demand and expanding margins could produce further upside for STX. Surging Earnings Estimates Signal Upside for Seagate Stock
• Neutral Sentiment: Although some valuation analysis indicates potential discounted-cash-flow upside, Seagate’s substantial multiyear rally and elevated earnings multiple mean the stock is not uniformly viewed as a bargain. Investors remain exposed to storage-industry cyclicality and high expectations. Seagate Stock Could Trade Below Fair Value While Earnings Look Full

Analyst Ratings Changes

STX has been the subject of several research analyst reports. China Renaissance lifted their price objective on Seagate Technology from $802.00 to $983.00 in a research note on Friday, June 12th. 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 note on Wednesday, April 29th. Barclays lifted their price target on Seagate Technology from $1,000.00 to $1,250.00 and gave the company an "overweight" rating in a research report on Thursday, July 30th. Cantor Fitzgerald reissued an "overweight" rating and set a $1,300.00 price objective on shares of Seagate Technology in a report on Wednesday, July 29th. Finally, Evercore upped their price objective on shares of Seagate Technology from $750.00 to $1,000.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 12th. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, Seagate Technology has a consensus rating of "Moderate Buy" and a consensus price target of $986.00.

Seagate Technology Stock Up 5.7%

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 stock has a 50-day simple moving average of $888.84 and a two-hundred day simple moving average of $662.62. The firm has a market cap of $220.63 billion, a PE ratio of 70.13 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 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 during 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. Analysts expect that Seagate Technology Holdings PLC will post 34.42 earnings per share for the current year.

Seagate Technology Dividend Announcement

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

Insider Buying and Selling at Seagate Technology

In other Seagate Technology news, CEO William D. Mosley sold 30,000 shares of Seagate Technology stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $751.29, for a total transaction of $22,538,700.00. Following the transaction, the chief executive officer directly owned 339,591 shares of the company's stock, valued at approximately $255,131,322.39. This trade represents a 8.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 14,091 shares of the business's 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 owned 21,543 shares of the company's stock, valued at approximately $17,476,758.75. The trade was a 39.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 163,650 shares of company stock worth $138,616,274 over the last ninety days. Insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Norges Bank purchased a new stake in Seagate Technology during the 4th quarter valued at about $498,363,000. Soroban Capital Partners LP lifted its position in 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 valued at $204,602,000 after purchasing an additional 1,327,197 shares during the last quarter. Janus Henderson Group PLC lifted its position in Seagate Technology by 3,872.1% in the first quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider's stock valued at $378,985,000 after purchasing an additional 943,170 shares during the last quarter. Deutsche Bank AG boosted its stake 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 valued at $440,614,000 after purchasing an additional 807,962 shares during the period. Finally, National Pension Service boosted its stake in shares of Seagate Technology by 298.7% during the fourth quarter. National Pension Service now owns 997,223 shares of the data storage provider's stock valued at $274,625,000 after purchasing an additional 747,102 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.

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