Seagate Technology (NASDAQ:STX) Trading Down 12.2% - Should You Sell?

Key Points

• Seagate Technology shares fell 12.2% in intraday trading, with unusually heavy volume after the stock dropped from a prior close of $1,025.36 to around $899.90.
• Despite the selloff, recent commentary around AI-driven memory and storage demand has remained positive, and analysts broadly still rate the stock a Moderate Buy with multiple firms raising price targets.
• The company recently beat quarterly expectations with EPS of $4.10 on revenue of $3.11 billion, and it also announced a quarterly dividend of $0.74 per share; however, insider sales and leverage concerns have added pressure on sentiment.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) was down 12.2% during mid-day trading on Friday . The company traded as low as $880.49 and last traded at $899.90. 9,260,402 shares were traded during mid-day trading, an increase of 119% from the average session volume of 4,229,262 shares. The stock had previously closed at $1,025.36.

Key Seagate Technology News

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

• Positive Sentiment: Micron’s strong quarterly results and upbeat AI demand commentary lifted sentiment across memory and storage names, including Seagate, by reinforcing expectations for a memory/storage upcycle. Micron Leads Tech Stocks Rally on Blowout Earnings
• Positive Sentiment: Analyst and media coverage continues to frame Seagate as a key AI infrastructure winner, citing stronger data-center demand, pricing power, and solid recent revenue and margin performance. Is Seagate (STX) Turning AI-Fueled Pricing Power Into a More Durable Earnings Model?
• Positive Sentiment: Another bullish read-through from Micron’s results put Seagate, Western Digital, and Sandisk in focus as investors looked for beneficiaries of rising AI memory demand. Micron's Robust Q3 Results Raise Investor Attention on These 3 Stocks
• Neutral Sentiment: Broader market commentary noted that tech stocks were volatile and some AI winners gave back gains, which may have tempered enthusiasm for Seagate despite the positive sector backdrop. Micron, Sandisk, Apple, ON Semiconductor, and More Stocks That Explain Today’s Market
• Negative Sentiment: One report specifically said Seagate was hit hard by a leverage-driven selloff in the chip space and renewed doubts about debt-funded AI capex, showing that valuation and leverage concerns remain a risk. Why Seagate (STX) Shares Are Getting Obliterated Today

Wall Street Analyst Weigh In

STX has been the topic of a number of research reports. China Renaissance boosted their target price on shares of Seagate Technology from $802.00 to $983.00 in a report on Friday, June 12th. Susquehanna lifted their price target on shares of Seagate Technology from $485.00 to $615.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Argus boosted their price objective on shares of Seagate Technology from $450.00 to $750.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Weiss Ratings restated a "buy (b)" rating on shares of Seagate Technology in a report on Wednesday. Finally, Mizuho raised their target price on Seagate Technology from $875.00 to $1,090.00 and gave the stock an "outperform" rating in a research report on Monday, June 8th. One analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Seagate Technology presently has a consensus rating of "Moderate Buy" and an average price target of $831.79.

Seagate Technology Stock Down 12.2%

The stock's 50-day moving average price is $811.11 and its 200-day moving average price is $526.55. The company has a current ratio of 1.33, a quick ratio of 0.85 and a debt-to-equity ratio of 3.16. The stock has a market cap of $201.78 billion, a price-to-earnings ratio of 85.38 and a beta of 2.04.

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

Seagate Technology Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Investors of record on Wednesday, June 24th will be given a dividend of $0.74 per share. The ex-dividend date is Wednesday, June 24th. This represents a $2.96 annualized dividend and a dividend yield of 0.3%. Seagate Technology's dividend payout ratio is presently 28.08%.

Insiders Place Their Bets

In other news, CFO Gianluca Romano sold 903 shares of Seagate Technology stock in a transaction on Friday, June 12th. The shares were sold at an average price of $880.19, for a total value of $794,811.57. Following the completion of the sale, the chief financial officer owned 42,860 shares in the company, valued at $37,724,943.40. The trade was a 2.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO William D. Mosley sold 1,768 shares of the business's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $880.19, for a total transaction of $1,556,175.92. Following the transaction, the chief executive officer owned 327,517 shares in the company, valued at $288,277,188.23. The trade was a 0.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 141,069 shares of company stock valued at $107,161,712 in the last 90 days. Company 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 the stock. PFA Pension Forsikringsaktieselskab purchased a new position in Seagate Technology in the 4th quarter valued at approximately $23,882,000. New York State Teachers Retirement System lifted its position in shares of Seagate Technology by 5.0% during the fourth quarter. New York State Teachers Retirement System now owns 187,044 shares of the data storage provider's stock worth $51,510,000 after acquiring an additional 8,991 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Seagate Technology by 1.2% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 518,806 shares of the data storage provider's stock worth $142,874,000 after acquiring an additional 6,028 shares in the last quarter. Praxis Investment Management Inc. boosted its holdings in shares of Seagate Technology by 56.5% in the fourth quarter. Praxis Investment Management Inc. now owns 6,615 shares of the data storage provider's stock worth $1,822,000 after acquiring an additional 2,389 shares during the period. Finally, Keystone Investors PTE Ltd. grew its position in shares of Seagate Technology by 55.7% in the third quarter. Keystone Investors PTE Ltd. now owns 50,321 shares of the data storage provider's stock valued at $11,879,000 after purchasing an additional 18,000 shares in the last quarter. 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.