Seagate Technology (NASDAQ:STX) Trading Up 4.1% - Time to Buy?

Key Points

• Seagate Technology shares rose 4.1% on Tuesday, trading as high as $862.65 before closing at $845.76, with volume below its daily average.
• Analyst sentiment remains positive overall: several firms recently raised ratings or price targets, and MarketBeat shows a consensus rating of Moderate Buy with an average target price of $736.21.
• The company posted a strong quarter, reporting $4.10 EPS and $3.11 billion in revenue, both above estimates, and it recently declared a $0.74 quarterly dividend payable July 7.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report)'s share price was up 4.1% on Tuesday . The company traded as high as $862.65 and last traded at $845.76. Approximately 3,408,291 shares changed hands during mid-day trading, a decline of 19% from the average daily volume of 4,188,589 shares. The stock had previously closed at $812.73.

Analyst Ratings Changes

A number of analysts have weighed in on STX shares. Wall Street Zen upgraded shares of Seagate Technology from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Loop Capital raised their target price on shares of Seagate Technology from $950.00 to $1,140.00 and gave the company a "buy" rating in a research report on Friday, May 15th. UBS Group raised their target price on shares of Seagate Technology from $515.00 to $545.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. Jefferies Financial Group restated a "hold" rating on shares of Seagate Technology in a research report on Wednesday, February 4th. Finally, KeyCorp set a $500.00 target price on shares of Seagate Technology in a research report on Wednesday, January 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $736.21.

Seagate Technology Trading Up 4.1%

The company has a market cap of $189.64 billion, a price-to-earnings ratio of 80.24 and a beta of 1.98. The business's fifty day moving average price is $574.69 and its 200 day moving average price is $416.45. The company has a debt-to-equity ratio of 3.16, a current ratio of 1.33 and a quick ratio of 0.85.

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 company 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%. Seagate Technology's revenue was up 44.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.90 earnings per share. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. Research analysts anticipate that Seagate Technology Holdings PLC will post 14.1 earnings per share for the current fiscal year.

Seagate Technology Dividend Announcement

The firm 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. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date is Wednesday, June 24th. Seagate Technology's payout ratio is 28.08%.

Insider Activity at Seagate Technology

In related news, EVP Ban Seng Teh sold 8,003 shares of Seagate Technology stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $817.28, for a total transaction of $6,540,691.84. Following the completion of the transaction, the executive vice president owned 3,691 shares of the company's stock, valued at $3,016,580.48. This trade represents a 68.44% decrease in their ownership of the stock. The sale was disclosed in a filing 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, Director Stephanie Tilenius sold 1,580 shares of Seagate Technology stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $766.61, for a total transaction of $1,211,243.80. Following the transaction, the director directly owned 10,664 shares of the company's stock, valued at $8,175,129.04. This represents a 12.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 142,437 shares of company stock valued at $86,093,575 in the last quarter. Insiders own 0.79% of the company's stock.

Hedge Funds Weigh In On Seagate Technology

A number of hedge funds have recently bought and sold shares of STX. WCM Investment Management LLC bought a new position in Seagate Technology during the third quarter worth $1,187,621,000. Arrowstreet Capital Limited Partnership raised its stake in Seagate Technology by 1,072.5% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,949,512 shares of the data storage provider's stock worth $696,262,000 after buying an additional 2,697,957 shares during the last quarter. Massachusetts Financial Services Co. MA raised its stake in Seagate Technology by 1,510.1% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 2,008,516 shares of the data storage provider's stock worth $553,125,000 after buying an additional 1,883,769 shares during the last quarter. Norges Bank bought a new position in Seagate Technology during the fourth quarter worth $498,363,000. Finally, Soroban Capital Partners LP raised its stake in Seagate Technology by 1,468.1% during the second quarter. Soroban Capital Partners LP now owns 1,417,600 shares of the data storage provider's stock worth $204,602,000 after buying an additional 1,327,197 shares during the last quarter. Institutional investors 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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