Seagate Technology (NASDAQ:STX) Upgraded by Wall Street Zen to "Strong-Buy" Rating

Key Points

• Wall Street Zen upgraded Seagate Technology to “strong buy,” adding to broadly positive analyst sentiment. MarketBeat reports a “moderate buy” consensus rating and a $986 average price target.
• Seagate exceeded quarterly expectations, reporting $5.71 in adjusted EPS versus $5.10 expected and $3.63 billion in revenue versus $3.50 billion expected. Revenue rose 48.5% year over year, while fiscal Q1 2027 EPS guidance was set at $7.10-$7.50.
• AI-driven data-center demand is supporting growth through strong demand for high-capacity HDDs and Seagate’s Mozaic and HAMR technologies, although the stock’s elevated valuation leaves it exposed to weaker pricing, delayed technology adoption or a slowdown in AI spending.

Seagate Technology (NASDAQ:STX - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a note issued to investors on Saturday.

A number of other equities analysts also recently weighed in on STX. Melius Research assumed coverage on Seagate Technology in a report on Monday, June 29th. They issued a "buy" rating and a $1,600.00 target price on the stock. Fox Advisors downgraded shares of Seagate Technology from an "overweight" rating to an "equal weight" rating in a research report on Monday, June 22nd. BNP Paribas Exane increased their target price on shares of Seagate Technology from $530.00 to $860.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 29th. Rosenblatt Securities lifted their target price on shares of Seagate Technology from $1,300.00 to $1,400.00 and gave the company a "buy" rating in a research note on Wednesday. Finally, Sanford C. Bernstein restated an "outperform" rating and set a $1,350.00 price target on shares of Seagate Technology in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Seagate Technology currently has an average rating of "Moderate Buy" and a consensus price target of $986.00.

Seagate Technology Stock Performance

Shares of Seagate Technology stock opened at $856.13 on Friday. Seagate Technology has a 12 month low of $144.75 and a 12 month high of $1,145.00. The company has a quick ratio of 0.85, a current ratio of 1.67 and a debt-to-equity ratio of 1.56. The stock has a market cap of $191.97 billion, a PE ratio of 61.68 and a beta of 2.04. The business has a fifty day simple moving average of $896.91 and a 200-day simple moving average of $627.82.

Seagate Technology (NASDAQ:STX - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share for the quarter, beating the consensus estimate of $5.10 by $0.61. The firm had revenue of $3.63 billion for the quarter, compared to analyst estimates of $3.50 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%.Seagate Technology's quarterly revenue was up 48.5% on a year-over-year basis. During the same period in the previous year, the firm earned $2.59 earnings per share. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. On average, sell-side analysts anticipate that Seagate Technology will post 28.25 EPS for the current fiscal year.

Insider Buying and Selling

In related news, EVP Ban Seng Teh sold 8,003 shares of the business's stock in a transaction that occurred on Thursday, May 14th. The stock was 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 in the company, valued at approximately $3,016,580.48. The trade was a 68.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 22,488 shares of Seagate Technology stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $774.22, for a total transaction of $17,410,659.36. Following the completion of the transaction, the chief financial officer owned 42,847 shares in the company, valued at $33,173,004.34. This trade represents a 34.42% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 151,069 shares of company stock valued at $126,191,753 over the last 90 days. 0.79% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of STX. PFA Pension Forsikringsaktieselskab acquired a new position in shares of Seagate Technology in the fourth quarter valued at about $23,882,000. New York State Teachers Retirement System boosted its stake in Seagate Technology by 5.0% in the fourth quarter. New York State Teachers Retirement System now owns 187,044 shares of the data storage provider's stock valued at $51,510,000 after buying an additional 8,991 shares in the last quarter. Praxis Investment Management Inc. grew its holdings in shares of Seagate Technology by 56.5% during the 4th quarter. Praxis Investment Management Inc. now owns 6,615 shares of the data storage provider's stock valued at $1,822,000 after purchasing an additional 2,389 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. grew its stake in shares of Seagate Technology by 1.2% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 518,806 shares of the data storage provider's stock worth $142,874,000 after buying an additional 6,028 shares during the last quarter. Finally, Ritholtz Wealth Management grew its position in Seagate Technology by 64.5% during the 4th quarter. Ritholtz Wealth Management now owns 21,321 shares of the data storage provider's stock worth $5,872,000 after acquiring an additional 8,358 shares during the last quarter. 92.87% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Seagate Technology

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

• Positive Sentiment: Strong earnings and guidance: Seagate reported adjusted earnings of $5.71 per share versus the $5.10 consensus estimate, while revenue reached $3.63 billion against expectations of $3.50 billion. Revenue increased 48.5% year over year, and fiscal Q1 2027 EPS guidance of $7.10-$7.50 exceeded the bullish outlook. Seagate Technology Shares Up After Earnings Beat
• Positive Sentiment: AI storage demand is the central growth catalyst: Cloud providers and data centers are reserving high-capacity HDDs for AI training data, model outputs and other persistent data. Allocated nearline supply through 2028, expanding Mozaic drives and HAMR technology—supporting capacities of up to 44TB—provide Seagate with unusually strong demand visibility. Seagate HAMR and AI Storage Growth
• Positive Sentiment: Analyst sentiment has strengthened: Zacks upgraded STX to “strong buy,” while Argus and Barclays raised price targets to $900 and $1,250, respectively. Citi, JPMorgan, Wedbush, TD Cowen, Susquehanna and Wells Fargo also issued bullish outlooks, contributing to a consensus “moderate buy” rating. Analysts Raise Seagate Price Targets
• Neutral Sentiment: Broader AI infrastructure enthusiasm is supporting storage stocks as major technology companies are expected to spend more than $750 billion on AI infrastructure in 2026. This improves the industry backdrop but also means STX’s valuation and performance remain sensitive to AI spending expectations.
• Negative Sentiment: Valuation risk is rising: After a substantial 2026 rally, Seagate trades at a premium earnings multiple. Analysts note that strong execution is already reflected in the stock, leaving less room for delays in HAMR adoption, weaker pricing or any slowdown in data-center demand. Seagate Valuation After Its Rally

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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