Seagate Technology (NASDAQ:STX) Trading Down 8.5% - Time to Sell?

Key Points

• Seagate shares fell 8.5% to $747.30 in heavy trading despite the company reporting fiscal fourth-quarter results above expectations, including $5.71 in EPS and $3.63 billion in revenue.
• Management issued significantly stronger-than-expected fiscal 2027 first-quarter guidance, citing robust AI- and cloud-driven demand for high-capacity HDDs. Fiscal 2026 revenue grew 34% and free cash flow reached a record $3.1 billion.
• The selloff reflects profit-taking after a roughly 450% stock rally, alongside broader weakness in storage stocks, tariff concerns and elevated valuation. Analysts nevertheless maintain a “Moderate Buy” consensus with an average price target of $898.52.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) shares traded down 8.5% during mid-day trading on Tuesday . The company traded as low as $698.99 and last traded at $747.30. 8,374,796 shares were traded during mid-day trading, an increase of 93% from the average session volume of 4,339,400 shares. The stock had previously closed at $816.99.

Key Stories Impacting Seagate Technology

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

• Positive Sentiment: AI demand drove a significant earnings beat. Seagate reported fiscal fourth-quarter EPS of $5.71, exceeding the $5.10 consensus estimate, while revenue of $3.63 billion topped expectations of $3.50 billion. Net income rose to $1.29 billion from $488 million a year earlier. Seagate Stock Jumps After Blowout Earnings Fueled by AI Demand
• Positive Sentiment: Management issued sharply stronger-than-expected first-quarter fiscal 2027 guidance. Seagate forecast EPS of $7.10-$7.50, well above the $5.63 analyst consensus, and revenue of $4.0-$4.2 billion versus expectations of $3.7 billion. The outlook reflects robust demand for high-capacity hard disk drives used in AI and cloud infrastructure. Seagate forecasts upbeat quarter on strong AI-driven storage demand
• Positive Sentiment: Fiscal 2026 ended with record profitability and cash generation. Annual revenue grew 34%, and free cash flow reached a record $3.1 billion, supporting the case that AI-related storage demand is translating into stronger operating results. Seagate Technology Reports Fiscal Fourth Quarter and Fiscal Year 2026 Financial Results
• Neutral Sentiment: The investment case remains centered on nearline HDD shipments and Seagate’s Mozaic platform. These products are positioned to benefit from rising data-storage requirements as AI infrastructure expands, but investors are likely to monitor whether demand and pricing remain sustainable.
• Negative Sentiment: Valuation and profit-taking created a high bar for the results. Seagate’s stock had already rallied roughly 450%, meaning even strong results could prompt investors to lock in gains if the guidance did not exceed increasingly aggressive expectations. Seagate's Stock Rally Has Outrun Its Own Guidance
• Negative Sentiment: Sector weakness and tariff concerns added pressure. Memory and storage stocks were broadly weak before the report, while new U.S. tariffs and concerns about an overheated AI trade weighed on sentiment. Memory and storage stocks see large premarket losses

Wall Street Analyst Weigh In

Several brokerages have issued reports on STX. UBS Group upped their price objective on Seagate Technology from $515.00 to $545.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. Argus raised their price target on shares of Seagate Technology from $450.00 to $750.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. BNP Paribas Exane upped their price objective on shares of Seagate Technology from $530.00 to $860.00 and gave the stock an "outperform" rating in a report on Wednesday, April 29th. Wedbush increased their price objective on shares of Seagate Technology from $700.00 to $825.00 and gave the company an "outperform" rating in a report on Monday, April 27th. Finally, Mizuho raised their price objective on shares of Seagate Technology from $875.00 to $1,090.00 and gave the company an "outperform" rating in a research note on Monday, June 8th. Twenty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, Seagate Technology presently has a consensus rating of "Moderate Buy" and a consensus price target of $898.52.

Seagate Technology Trading Down 8.5%

The firm has a market capitalization of $167.57 billion, a price-to-earnings ratio of 70.90 and a beta of 2.04. 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 firm's 50 day moving average is $894.67 and its 200 day moving average is $615.89.

Seagate Technology (NASDAQ:STX - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The data storage provider reported $4.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.51 by $0.59. The firm had revenue of $3.11 billion for the quarter, compared to analyst estimates of $2.96 billion. Seagate Technology had a net margin of 21.60% and a return on equity of 1,005.65%. The firm's quarterly revenue was up 44.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.90 earnings per share. Equities analysts forecast that Seagate Technology Holdings PLC will post 14.14 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP John Christopher Morris sold 1,364 shares of Seagate Technology stock in a transaction on Friday, June 12th. The stock was sold at an average price of $880.19, for a total value of $1,200,579.16. Following the transaction, the executive vice president directly owned 12,088 shares in the company, valued at $10,639,736.72. The trade was a 10.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Seng Teh sold 989 shares of the business's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $880.19, for a total value of $870,507.91. Following the sale, the executive vice president directly owned 4,290 shares in the company, valued at $3,776,015.10. This trade represents a 18.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 151,069 shares of company stock valued at $126,191,753. 0.79% of the stock is owned by insiders.

Institutional Trading of Seagate Technology

Several institutional investors and hedge funds have recently bought and sold shares of STX. Annis Gardner Whiting Capital Advisors LLC raised its holdings 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 acquiring an additional 15 shares during the period. Salomon & Ludwin LLC grew its position in Seagate Technology by 124.4% during the 4th quarter. Salomon & Ludwin LLC now owns 92 shares of the data storage provider's stock worth $27,000 after purchasing an additional 51 shares in the last quarter. WealthCollab LLC grew its position 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 purchasing an additional 20 shares in the last quarter. Catalyst Capital Advisors LLC acquired a new stake in Seagate Technology during the 1st quarter valued at $39,000. Finally, Concord Wealth Partners purchased a new stake in shares of Seagate Technology in the fourth quarter valued at $28,000. Institutional investors and hedge funds own 92.87% of the company's stock.

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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