Seagate Technology (NASDAQ:STX) Trading Down 3% - Here's Why

Key Points

• Seagate Technology stock fell 3% on Tuesday, trading as low as $766.97 and closing at $808.80, with volume below its daily average.
• Despite the pullback, analyst sentiment remains positive: multiple firms raised price targets, and the stock now carries a “Moderate Buy” consensus with a $719.54 average target.
• The company recently reported strong quarterly results, topping estimates for both earnings and revenue, and also declared a quarterly dividend of $0.74 per share payable July 7.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s stock price traded down 3% on Tuesday . The stock traded as low as $766.97 and last traded at $808.80. 3,772,597 shares were traded during trading, a decline of 12% from the average session volume of 4,296,733 shares. The stock had previously closed at $834.01.

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. Susquehanna raised their target price on shares of Seagate Technology from $485.00 to $615.00 and gave the company a "neutral" rating in a report on Wednesday, April 29th. JPMorgan Chase & Co. raised their target price on shares of Seagate Technology from $525.00 to $775.00 and gave the company an "overweight" rating in a report on Wednesday, April 29th. Zacks Research upgraded shares of Seagate Technology from a "hold" rating to a "strong-buy" rating in a report on Friday, May 1st. Argus raised their target price on shares of Seagate Technology from $450.00 to $750.00 and gave the company a "buy" rating in a report on Thursday, April 30th. Finally, Robert W. Baird raised their target price on shares of Seagate Technology from $270.00 to $505.00 and gave the company an "outperform" rating in a report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $719.54.

Seagate Technology Trading Down 3.0%

The firm has a market capitalization of $181.35 billion, a PE ratio of 76.74 and a beta of 1.98. The company has a quick ratio of 0.85, a current ratio of 1.33 and a debt-to-equity ratio of 3.16. The business's fifty day moving average price is $492.12 and its 200 day moving average price is $378.05.

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

Seagate Technology Announces Dividend

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

Insider Buying and Selling at Seagate Technology

In other news, EVP John Christopher Morris sold 5,626 shares of Seagate Technology stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $738.37, for a total transaction of $4,154,069.62. Following the completion of the sale, the executive vice president directly owned 11,954 shares in the company, valued at $8,826,474.98. The trade was a 32.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 1,902 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $770.00, for a total transaction of $1,464,540.00. Following the completion of the sale, the chief financial officer directly owned 40,945 shares in the company, valued at $31,527,650. This represents a 4.44% 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 quarter, insiders sold 102,723 shares of company stock valued at $53,301,684. Corporate insiders own 0.79% of the company's stock.

Institutional Trading of Seagate Technology

Several institutional investors have recently made changes to their positions in the stock. Salomon & Ludwin LLC boosted its holdings in Seagate Technology by 124.4% in the fourth quarter. Salomon & Ludwin LLC now owns 92 shares of the data storage provider's stock valued at $27,000 after acquiring an additional 51 shares during the last quarter. Rakuten Securities Inc. boosted its holdings in Seagate Technology by 884.2% in the second quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider's stock valued at $27,000 after acquiring an additional 168 shares during the last quarter. Armstrong Advisory Group Inc. acquired a new position in Seagate Technology in the fourth quarter valued at $28,000. Avion Wealth boosted its holdings in Seagate Technology by 343.5% in the fourth quarter. Avion Wealth now owns 102 shares of the data storage provider's stock valued at $28,000 after acquiring an additional 79 shares during the last quarter. Finally, Concord Wealth Partners acquired a new position in Seagate Technology in the fourth quarter valued at $28,000. 92.87% of the stock is owned by hedge funds and other institutional investors.

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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