Seagate Technology (NASDAQ:STX) Trading Up 1.7% - Here's What Happened

Key Points

• Seagate shares rose 1.7% in midday trading amid optimism about AI-driven data-center demand and long-term customer orders.
• Recent quarterly results beat expectations, with EPS of $5.71 and revenue of $3.63 billion, while next-quarter EPS guidance of $7.10–$7.50 reinforced the positive outlook.
• Analysts maintain a generally bullish view, with a consensus “Moderate Buy” rating and average price target of $986, though elevated valuation and volatility in memory and storage stocks remain risks.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s stock price shot up 1.7% during mid-day trading on Tuesday . The company traded as high as $885.00 and last traded at $845.35. 4,988,150 shares changed hands during mid-day trading, an increase of 13% from the average session volume of 4,428,507 shares. The stock had previously closed at $831.06.

More Seagate Technology News

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

• Positive Sentiment: AI demand is improving revenue visibility. BNP Paribas highlighted long-term customer orders, an unusual source of visibility for cyclical storage companies. The commitments support the view that data-center and AI infrastructure spending could sustain Seagate’s growth. BNP Paribas Resets Seagate Target After Stunning AI Signal
• Positive Sentiment: Seagate remains a favored momentum and AI-infrastructure stock. Analysts cited AI infrastructure spending, financial strength and earnings growth as reasons to include STX among August momentum candidates. Broader industry spending on AI infrastructure is expected to support demand for storage capacity. 5 Momentum Stocks to Buy for August Despite a Mixed July
• Positive Sentiment: Recent results and guidance exceeded expectations. Seagate reported quarterly EPS of $5.71 versus the $5.10 consensus estimate, while revenue reached $3.63 billion, up 48.5% year over year and above the $3.50 billion forecast. Its next-quarter EPS outlook of $7.10-$7.50 further supports the bullish earnings narrative.
• Neutral Sentiment: An executive sold shares under a scheduled plan. EVP James Ci Lee sold 694 shares for approximately $609,000 in a Rule 10b5-1 transaction, reducing his direct ownership by two-thirds. Because the sale was pre-arranged, it provides limited information about management’s current view of the business. Insider Selling: Seagate Technology EVP Sells 694 Shares
• Negative Sentiment: Valuation and sector volatility remain risks. Seagate recently fell with other memory and storage stocks as investors took profits and reassessed elevated valuations. With STX trading at a high earnings multiple and well below its 50-day average, further volatility could limit gains despite the improving AI outlook. Seagate and Western Digital Dive as Memory Stocks Cool

Wall Street Analyst Weigh In

STX has been the subject of several recent research reports. Fox Advisors cut Seagate Technology from an "overweight" rating to an "equal weight" rating in a research report on Monday, June 22nd. China Renaissance boosted their price target on Seagate Technology from $802.00 to $983.00 in a research report on Friday, June 12th. Melius Research initiated coverage on Seagate Technology in a research note on Monday, June 29th. They set a "buy" rating and a $1,600.00 price objective on the stock. Argus increased their price objective on Seagate Technology from $750.00 to $900.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Finally, TD Cowen raised their target price on shares of Seagate Technology from $850.00 to $1,000.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $986.00.

Seagate Technology Price Performance

The company has a current ratio of 1.67, a quick ratio of 1.17 and a debt-to-equity ratio of 1.56. The firm has a market capitalization of $189.55 billion, a price-to-earnings ratio of 60.90 and a beta of 2.06. The company's 50 day moving average is $897.28 and its 200-day moving average is $633.59.

Seagate Technology (NASDAQ:STX - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share for the quarter, topping analysts' consensus estimates of $5.10 by $0.61. The firm had revenue of $3.63 billion for the quarter, compared to the consensus estimate of $3.50 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%.The business's revenue was up 48.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.59 earnings per share. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. Equities research analysts anticipate that Seagate Technology Holdings PLC will post 33.08 earnings per share for the current year.

Seagate Technology Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Thursday, September 24th will be issued a dividend of $0.74 per share. The ex-dividend date of this dividend is Thursday, September 24th. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.4%. Seagate Technology's payout ratio is presently 21.33%.

Insiders Place Their Bets

In other Seagate Technology news, EVP James Ci Lee sold 694 shares of the firm's stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $877.45, for a total transaction of $608,950.30. Following the completion of the sale, the executive vice president owned 347 shares of the company's stock, valued at $304,475.15. This trade represents a 66.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $1,200,579.16. Following the transaction, the executive vice president directly owned 12,088 shares of the company's stock, valued at approximately $10,639,736.72. This trade represents a 10.14% 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. Insiders have sold 143,860 shares of company stock worth $120,918,795 in the last quarter. Company insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Annis Gardner Whiting Capital Advisors LLC boosted 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 worth $31,000 after acquiring an additional 15 shares during the period. Salomon & Ludwin LLC increased its stake in shares of Seagate Technology by 124.4% during the fourth quarter. Salomon & Ludwin LLC now owns 92 shares of the data storage provider's stock worth $27,000 after purchasing an additional 51 shares during the period. WealthCollab LLC increased its stake in shares of Seagate Technology by 27.4% during the first quarter. WealthCollab LLC now owns 93 shares of the data storage provider's stock worth $36,000 after purchasing an additional 20 shares during the period. Catalyst Capital Advisors LLC acquired a new stake in Seagate Technology during the 1st quarter worth approximately $39,000. Finally, Concord Wealth Partners acquired a new stake in Seagate Technology during the 4th quarter worth approximately $28,000. Institutional investors and hedge funds 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.

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