Seagate Technology (NASDAQ:STX) Trading Up 7.7% Following Analyst Upgrade

Key Points

• Seagate Technology stock rose 7.7% following an upgrade from Bank of America, which raised its price target from $170.00 to $215.00 and maintains a buy rating.
• Seagate's recent quarterly earnings exceeded analysts' expectations, reporting $2.59 earnings per share against a forecast of $2.45, with year-over-year revenue growth of 29.5%.
• The company announced a quarterly dividend of $0.72, with a dividend yield of 1.4%, and has initiated a stock repurchase program allowing for up to $5.00 billion in share buybacks.

Seagate Technology Holdings PLC (NASDAQ:STX - Get Free Report) was up 7.7% during trading on Monday after Bank of America raised their price target on the stock from $170.00 to $215.00. Bank of America currently has a buy rating on the stock. Seagate Technology traded as high as $206.35 and last traded at $211.11. Approximately 574,095 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 3,838,769 shares. The stock had previously closed at $195.99.

Several other research analysts have also recently issued reports on the company. The Goldman Sachs Group started coverage on Seagate Technology in a research report on Thursday, July 10th. They issued a "buy" rating and a $170.00 price objective for the company. TD Cowen boosted their price target on Seagate Technology from $135.00 to $175.00 and gave the stock a "buy" rating in a research note on Wednesday, July 30th. Wedbush reissued an "outperform" rating and set a $140.00 price target on shares of Seagate Technology in a research note on Wednesday, May 21st. Susquehanna boosted their price target on Seagate Technology from $68.00 to $80.00 and gave the stock a "negative" rating in a research note on Wednesday, July 30th. Finally, Benchmark boosted their price target on Seagate Technology from $128.00 to $165.00 and gave the stock a "buy" rating in a research note on Wednesday, July 30th. Fourteen research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $160.89.

Insider Buying and Selling at Seagate Technology

In other Seagate Technology news, EVP Ban Seng Teh sold 1,724 shares of the company's stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $151.61, for a total value of $261,375.64. Following the sale, the executive vice president owned 6,147 shares of the company's stock, valued at $931,946.67. This represents a 21.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jay L. Geldmacher sold 2,500 shares of the company's stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $150.50, for a total transaction of $376,250.00. Following the transaction, the director directly owned 352 shares in the company, valued at $52,976. The trade was a 87.66% decrease in their position. The disclosure for this sale can be found here. Insiders sold 56,479 shares of company stock worth $8,483,633 over the last ninety days. 0.81% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Seagate Technology

Large investors have recently bought and sold shares of the stock. Ameriflex Group Inc. purchased a new position in Seagate Technology during the fourth quarter worth approximately $26,000. Elequin Capital LP purchased a new position in Seagate Technology during the fourth quarter worth approximately $27,000. Fourth Dimension Wealth LLC purchased a new position in Seagate Technology during the fourth quarter worth approximately $27,000. Harbor Asset Planning Inc. purchased a new position in Seagate Technology during the second quarter worth approximately $27,000. Finally, Rakuten Securities Inc. raised its stake in Seagate Technology by 884.2% during the second quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider's stock worth $27,000 after purchasing an additional 168 shares during the period. Hedge funds and other institutional investors own 92.87% of the company's stock.

Seagate Technology Stock Up 7.7%

The company has a market cap of $44.95 billion, a PE ratio of 31.20, a P/E/G ratio of 1.21 and a beta of 1.53. The stock's 50 day simple moving average is $159.75 and its two-hundred day simple moving average is $121.86.

Seagate Technology (NASDAQ:STX - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The data storage provider reported $2.59 earnings per share for the quarter, topping analysts' consensus estimates of $2.45 by $0.14. The company had revenue of $2.44 billion for the quarter, compared to the consensus estimate of $2.40 billion. Seagate Technology had a net margin of 16.15% and a negative return on equity of 169.60%. Seagate Technology's revenue was up 29.5% on a year-over-year basis. During the same quarter last year, the firm posted $1.05 earnings per share. Seagate Technology has set its Q1 2026 guidance at 2.100-2.500 EPS. Analysts forecast that Seagate Technology Holdings PLC will post 6.83 EPS for the current year.

Seagate Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 9th. Stockholders of record on Tuesday, September 30th will be given a $0.72 dividend. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $2.88 annualized dividend and a dividend yield of 1.4%. Seagate Technology's dividend payout ratio is presently 42.54%.

Seagate Technology announced that its board has initiated a stock repurchase program on Thursday, May 22nd that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the data storage provider to reacquire up to 21.6% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's leadership believes its shares are undervalued.

Seagate Technology Company Profile

Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives.

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