Seagate Technology (NASDAQ:STX) Trading Down 1.4% - Here's What Happened

Key Points

• Seagate shares fell 1.4% to about $800.99 in mid-day trading, with volume slightly below the stock’s average.
• The company’s latest results beat expectations: quarterly EPS was $5.71 versus a $5.10 estimate, while revenue rose 48.5% year over year to $3.63 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $986.
• Seagate declared a quarterly dividend of $0.74, equivalent to an annualized $2.96 payout and a 0.4% yield; insiders have sold approximately $126.7 million of stock over the past three months.

Shares of Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) traded down 1.4% during mid-day trading on Monday . The company traded as low as $786.00 and last traded at $800.99. 4,061,224 shares changed hands during trading, a decline of 9% from the average session volume of 4,442,843 shares. The stock had previously closed at $812.76.

Analyst Ratings Changes

A number of brokerages have recently commented on STX. JPMorgan Chase & Co. raised their price target on Seagate Technology from $1,095.00 to $1,240.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. Melius Research assumed coverage on shares of Seagate Technology in a research report on Monday, June 29th. They issued a "buy" rating and a $1,600.00 target price for the company. Barclays raised their target price on shares of Seagate Technology from $1,000.00 to $1,250.00 and gave the company an "overweight" rating in a research note on Thursday, July 30th. Zacks Research upgraded shares of Seagate Technology from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 28th. Finally, Wedbush upped their price target on shares of Seagate Technology from $825.00 to $1,000.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 29th. One investment 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.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $986.00.

Seagate Technology Stock Performance

The company has a fifty day moving average price of $894.71 and a two-hundred day moving average price of $648.12. The firm has a market cap of $181.54 billion, a price-to-earnings ratio of 57.71 and a beta of 2.06. The company has a debt-to-equity ratio of 1.56, a current ratio of 1.67 and a quick ratio of 1.17.

Seagate Technology (NASDAQ:STX - Get Free Report) last released its earnings results 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. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%.The firm had revenue of $3.63 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same period in the previous year, the company earned $2.59 earnings per share. Seagate Technology's revenue was up 48.5% compared to the same quarter last year. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. As a group, equities research analysts expect that Seagate Technology Holdings PLC will post 34.42 EPS for the current year.

Seagate Technology Dividend Announcement

The firm 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 0.4%. Seagate Technology's payout ratio is currently 21.33%.

Insiders Place Their Bets

In related news, EVP Ban Seng Teh sold 989 shares of the stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $880.19, for a total transaction of $870,507.91. Following the completion of the sale, the executive vice president directly owned 4,290 shares of the company's stock, valued at $3,776,015.10. This represents a 18.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William D. Mosley sold 17,080 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $827.30, for a total transaction of $14,130,284.00. Following the sale, the chief executive officer owned 295,517 shares of the company's stock, valued at $244,481,214.10. The trade was a 5.46% 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. Over the last three months, insiders sold 149,638 shares of company stock worth $126,692,095. Company insiders own 0.79% of the company's stock.

Hedge Funds Weigh In On Seagate Technology

A number of hedge funds have recently modified their holdings of the stock. Great Lakes Advisors LLC purchased a new stake in shares of Seagate Technology during the second quarter valued at $839,000. Foster & Motley Inc. acquired a new position in shares of Seagate Technology in the 2nd quarter valued at $772,000. Commerzbank Aktiengesellschaft FI purchased a new position in Seagate Technology in the 2nd quarter worth about $1,129,000. Trust Co. of Vermont purchased a new position in Seagate Technology in the 2nd quarter worth about $54,000. Finally, Plato Investment Management Ltd acquired a new stake in Seagate Technology during the 2nd quarter worth about $5,571,000. 92.87% of the stock is currently owned by institutional investors and hedge funds.

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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