Seagate Technology (NASDAQ:STX) Trading Down 6.9% - Here's Why

Key Points

• Seagate Technology shares fell 6.9% on Monday amid heavy trading, with the stock dropping as low as $710.11 before last trading near $740.84.
• Despite the decline, analyst sentiment remains constructive: several firms recently raised price targets, and the stock still carries a Moderate Buy consensus with an average target of $733.71.
• Investor concern centers on possible supply constraints, after the CEO said building new factories would take too long, raising fears that Seagate may struggle to meet AI-driven demand in the near term.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) shares traded down 6.9% on Monday . The stock traded as low as $710.11 and last traded at $740.84. 4,928,978 shares traded hands during mid-day trading, an increase of 16% from the average session volume of 4,248,063 shares. The stock had previously closed at $795.47.

Seagate Technology News Summary

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

• Positive Sentiment: Evercore ISI raised its price target on Seagate Technology (STX), signaling continued analyst confidence in the company’s earnings and growth outlook.
• Positive Sentiment: Analysts and recent commentary continue to highlight Seagate’s AI storage opportunity, with strong demand for mass-capacity drives and Mozaic HAMR adoption supporting revenue and margin expansion.
• Neutral Sentiment: Seagate presented at the J.P. Morgan 54th Annual Global Technology, Media and Communications Conference, keeping investor attention on management’s outlook and strategy. Article Title
• Neutral Sentiment: Brokerage coverage remains generally constructive, with Seagate carrying an average “Moderate Buy” rating from analysts.
• Negative Sentiment: Seagate’s CEO said it would take too long to build new factories, raising concern that supply may lag demand and pressuring the stock alongside peers such as Micron, SanDisk, and Western Digital. Article Title
• Negative Sentiment: Related headlines noted Seagate’s shares fell after management discussed long lead times and expansion constraints, reinforcing worries about near-term supply growth. Article Title

Analyst Ratings Changes

A number of brokerages have commented on STX. Morgan Stanley lifted their price objective on shares of Seagate Technology from $582.00 to $767.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 29th. JPMorgan Chase & Co. lifted their price target on Seagate Technology from $525.00 to $775.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 29th. Citigroup boosted their price objective on Seagate Technology from $595.00 to $740.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Sanford C. Bernstein upped their price objective on Seagate Technology from $620.00 to $1,000.00 and gave the company an "outperform" rating in a research report on Wednesday, April 29th. Finally, Wells Fargo & Company raised their price objective on Seagate Technology from $450.00 to $700.00 and gave the company an "equal weight" rating in a research note on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $733.71.

Seagate Technology Stock Performance

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 has a 50 day moving average price of $526.24 and a 200 day moving average price of $394.39. The stock has a market cap of $166.12 billion, a P/E ratio of 70.29 and a beta of 1.98.

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 (EPS) for the quarter, beating analysts' consensus estimates of $3.51 by $0.59. Seagate Technology had a return on equity of 1,005.65% and a net margin of 21.60%.The company had revenue of $3.11 billion during the quarter, compared to analysts' expectations of $2.96 billion. During the same quarter in the previous year, the business earned $1.90 EPS. Seagate Technology's revenue was up 44.1% compared to the same quarter last year. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. As a group, sell-side analysts expect that Seagate Technology Holdings PLC will post 14.1 EPS for the current year.

Seagate Technology Announces Dividend

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

Insider Activity at Seagate Technology

In other Seagate Technology news, EVP Ban Seng Teh sold 8,003 shares of the business's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $817.28, for a total value of $6,540,691.84. Following the completion of the sale, the executive vice president directly owned 3,691 shares of the company's stock, valued at $3,016,580.48. The trade was a 68.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John Christopher Morris sold 5,626 shares of the company's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $738.37, for a total transaction of $4,154,069.62. Following the completion of the transaction, the executive vice president owned 11,954 shares in the company, valued at $8,826,474.98. This represents a 32.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 118,283 shares of company stock worth $65,989,618 over the last ninety days. 0.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Seagate Technology

A number of institutional investors and hedge funds have recently bought and sold shares of STX. Annis Gardner Whiting Capital Advisors LLC increased its stake in shares of Seagate Technology by 23.1% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider's stock valued at $31,000 after buying an additional 15 shares during the period. Salomon & Ludwin LLC lifted its stake in Seagate Technology by 124.4% in the fourth quarter. Salomon & Ludwin LLC now owns 92 shares of the data storage provider's stock worth $27,000 after acquiring an additional 51 shares during the period. WealthCollab LLC grew its holdings in Seagate Technology by 27.4% during the 1st quarter. WealthCollab LLC now owns 93 shares of the data storage provider's stock worth $36,000 after acquiring an additional 20 shares in the last quarter. Catalyst Capital Advisors LLC bought a new position in Seagate Technology during the 1st quarter worth about $39,000. Finally, Armstrong Advisory Group Inc. purchased a new position in Seagate Technology during the 4th quarter valued at about $28,000. 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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