Seagate Technology (NASDAQ:STX) Trading 7.9% Higher - Here's What Happened

Key Points

• Seagate Technology shares jumped 7.9% after Nvidia’s earnings reinforced optimism around AI infrastructure spending, which investors expect to boost demand for data-center storage hardware.
• Sentiment was further supported by Seagate’s announcement of exchanges for $185.9 million in exchangeable notes, a move that could simplify its capital structure and help manage debt obligations.
• Analysts remain broadly bullish, with several firms raising price targets sharply; however, valuation concerns persist, as some commentators have warned the stock may be getting expensive after its strong rally.

Shares of Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) traded up 7.9% on Thursday . The company traded as high as $811.51 and last traded at $810.46. 3,466,043 shares changed hands during trading, a decline of 18% from the average session volume of 4,210,723 shares. The stock had previously closed at $751.07.

More Seagate Technology News

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

• Positive Sentiment: Seagate and Western Digital rallied after Nvidia’s earnings reinforced strong AI infrastructure spending, which supports demand for storage hardware used in data centers. Seagate Stock, Western Digital Bounce Back After Nvidia Results
• Positive Sentiment: Seagate announced exchanges for $185.908 million of exchangeable notes, a move that may help simplify its capital structure and manage debt-related obligations. Seagate Announces Exchanges with Holders of $185.908 Million Principal Amount of Exchangeable Notes
• Positive Sentiment: Seagate has also benefited from bullish investor positioning, including reports that billionaire Stanley Druckenmiller added AI memory names such as Seagate to his portfolio. Billionaire Stanley Druckenmiller Dumped Every Share of Alphabet. He Bought AI Memory Stocks Up 581% to 3,467% Instead
• Neutral Sentiment: CEO William D. Mosley sold 30,000 shares under a pre-arranged Rule 10b5-1 plan. While insider sales can draw attention, the planned nature of the trade makes it less concerning than an open-market sale. SEC Form 4 filing
• Negative Sentiment: Jim Cramer called Seagate “too pricey,” highlighting valuation concerns at nearly 50 times next year’s earnings estimates, which could limit upside if investors rotate away from expensive chip and memory names. Jim Cramer on Seagate: “Too Pricey”
• Negative Sentiment: Comments from Seagate management that building new factories is not practical near term raised supply-capacity questions and briefly pressured memory-stock sentiment, as investors weighed whether the AI demand boom could face future constraints. Seagate Capacity Shift Raises AI Supply Questions And Valuation Opportunity

Wall Street Analyst Weigh In

A number of equities research analysts have commented on STX shares. Rosenblatt Securities raised their target price on shares of Seagate Technology from $500.00 to $1,000.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Weiss Ratings reissued a "buy (b)" rating on shares of Seagate Technology in a research note on Friday, March 27th. Mizuho increased their price objective on shares of Seagate Technology from $565.00 to $700.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 29th. Argus upped their target price on shares of Seagate Technology from $450.00 to $750.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Finally, JPMorgan Chase & Co. upped their target price on shares of Seagate Technology from $525.00 to $775.00 and gave the stock an "overweight" rating in a report on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $733.71.

Seagate Technology Stock Performance

The company has a debt-to-equity ratio of 3.16, a quick ratio of 0.85 and a current ratio of 1.33. The business's fifty day simple moving average is $548.86 and its 200-day simple moving average is $404.73. The firm has a market capitalization of $181.73 billion, a PE ratio of 76.89 and a beta of 1.98.

Seagate Technology (NASDAQ:STX - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The data storage provider reported $4.10 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.51 by $0.59. Seagate Technology had a net margin of 21.60% and a return on equity of 1,005.65%. The business had revenue of $3.11 billion during the quarter, compared to analyst estimates of $2.96 billion. During the same period last year, the firm posted $1.90 EPS. The company's revenue was up 44.1% on a year-over-year basis. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. As a group, equities research analysts expect that Seagate Technology Holdings PLC will post 14.1 EPS for the current year.

Seagate Technology Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Wednesday, June 24th will be paid a $0.74 dividend. The ex-dividend date is Wednesday, June 24th. This represents a $2.96 annualized dividend and a yield of 0.4%. Seagate Technology's payout ratio is presently 28.08%.

Insiders Place Their Bets

In related news, EVP James Ci Lee sold 697 shares of the company's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $741.17, for a total transaction of $516,595.49. Following the sale, the executive vice president owned 324 shares of the company's stock, valued at $240,139.08. This represents a 68.27% decrease in their ownership of the stock. 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 30,000 shares of Seagate Technology stock in a transaction dated 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 of the company's stock, valued at approximately $255,131,322.39. This represents a 8.12% decrease in their position. 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 90 days, insiders have sold 148,283 shares of company stock worth $88,528,318. 0.79% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Seagate Technology

Several institutional investors have recently modified their holdings of STX. Paragon Private Wealth Management LLC raised its holdings in Seagate Technology by 12.6% during the 1st quarter. Paragon Private Wealth Management LLC now owns 7,678 shares of the data storage provider's stock valued at $3,008,000 after buying an additional 857 shares during the period. Edgestream Partners L.P. bought a new position in Seagate Technology during the first quarter valued at $215,000. Janus Henderson Group PLC increased its position in 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 valued at $378,985,000 after acquiring an additional 943,170 shares during the last quarter. Bull Harbor Capital LLC bought a new position in Seagate Technology during the first quarter valued at $333,000. Finally, Amundi increased its position in Seagate Technology by 32.2% during the first quarter. Amundi now owns 965,565 shares of the data storage provider's stock valued at $378,267,000 after acquiring an additional 235,359 shares during 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.

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