Seagate Technology (NASDAQ:STX) Shares Down 5.2% – Here’s Why

Seagate Technology Holdings PLC (NASDAQ:STX)’s stock price dropped 5.2% on Wednesday . The stock traded as low as $886.20 and last traded at $915.19. 3,588,511 shares changed hands during mid-day trading, a decline of 15% from the average daily volume of 4,233,744 shares. The stock had previously closed at $965.00.

Seagate Technology News Summary

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

• Positive Sentiment: Bank of America raised its price target on Seagate to $1,150 from $1,000 and kept a buy rating, signaling more upside if AI storage demand and earnings strength continue. Benzinga article
• Positive Sentiment: Multiple recent articles describe Seagate as a momentum and growth stock, citing strong earnings beats, HAMR qualification wins, and AI-driven data center demand as key reasons investors remain bullish on STX. Zacks article
• Positive Sentiment: Coverage comparing Seagate with Micron and other AI storage names continues to highlight Seagate as a key beneficiary of rising memory and storage demand in the AI infrastructure buildout. Zacks article
• Neutral Sentiment: Zacks Research downgraded Seagate from strong-buy to hold, suggesting some analysts think the stock may have already priced in a lot of the recent upside. Zacks article
• Neutral Sentiment: Recent commentary also notes that Seagate has surged sharply this year, so even with constructive fundamentals, investors may be questioning how much more upside remains after the rally. 247WallSt article

Wall Street Analysts Forecast Growth

Several research firms have recently commented on STX. Wedbush lifted their price target on shares of Seagate Technology from $700.00 to $825.00 and gave the company an “outperform” rating in a research report on Monday, April 27th. Melius Research assumed coverage on Seagate Technology in a research report on Monday. They issued a “buy” rating and a $1,600.00 price objective for the company. Morgan Stanley raised their target price on Seagate Technology from $767.00 to $1,035.00 and gave the stock an “overweight” rating in a research note on Monday, June 15th. Loop Capital lifted their target price on Seagate Technology from $950.00 to $1,140.00 and gave the company a “buy” rating in a research report on Friday, May 15th. Finally, The Goldman Sachs Group upped their price target on Seagate Technology from $385.00 to $700.00 and gave the company a “buy” rating in a research note on Wednesday, April 29th. Twenty-one investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $880.52.

Seagate Technology Stock Performance

The firm’s fifty day moving average price is $835.80 and its 200 day moving average price is $540.40. The company has a current ratio of 1.33, a quick ratio of 0.85 and a debt-to-equity ratio of 3.16. The stock has a market capitalization of $205.21 billion, a price-to-earnings ratio of 86.83 and a beta of 2.04.

Seagate Technology (NASDAQ:STX) last posted its earnings results on Tuesday, April 28th. The data storage provider reported $4.10 earnings per share for the quarter, beating the consensus estimate of $3.51 by $0.59. The firm had revenue of $3.11 billion during the quarter, compared to the consensus estimate 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 revenue for the quarter was up 44.1% on a year-over-year basis. During the same quarter last year, the firm earned $1.90 EPS. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. Analysts forecast that Seagate Technology Holdings PLC will post 14.14 EPS for the current fiscal year.

Seagate Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 7th. Investors of record on Wednesday, June 24th will be paid a $0.74 dividend. The ex-dividend date is Wednesday, June 24th. This represents a $2.96 dividend on an annualized basis and a yield of 0.3%. Seagate Technology’s payout ratio is currently 28.08%.

Insider Activity

In other Seagate Technology news, CFO Gianluca Romano sold 22,488 shares of the firm’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $774.22, for a total value of $17,410,659.36. Following the sale, the chief financial officer directly owned 42,847 shares in the company, valued at $33,173,004.34. This trade represents a 34.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John Christopher Morris sold 5,626 shares of the business’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $738.37, for a total transaction of $4,154,069.62. Following the sale, the executive vice president owned 11,954 shares of the company’s stock, valued at $8,826,474.98. This represents a 32.00% decrease in their position. 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. Over the last quarter, insiders have sold 121,069 shares of company stock worth $98,747,112. Insiders own 0.79% of the company’s stock.

Institutional Trading of Seagate Technology

Several hedge funds and other institutional investors have recently made changes to their positions in STX. State Street Corp grew its position in Seagate Technology by 1.0% during the fourth quarter. State Street Corp now owns 9,370,805 shares of the data storage provider’s stock worth $2,587,535,000 after buying an additional 94,527 shares during the period. Morgan Stanley lifted its position in shares of Seagate Technology by 5.1% in the fourth quarter. Morgan Stanley now owns 5,317,516 shares of the data storage provider’s stock valued at $1,464,391,000 after acquiring an additional 258,151 shares in the last quarter. Geode Capital Management LLC increased its position in Seagate Technology by 5.0% during the 4th quarter. Geode Capital Management LLC now owns 4,896,815 shares of the data storage provider’s stock worth $1,343,683,000 after purchasing an additional 234,436 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Seagate Technology by 8.3% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,193,063 shares of the data storage provider’s stock valued at $879,338,000 after buying an additional 243,551 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA increased its stake in Seagate Technology by 1,510.1% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 2,008,516 shares of the data storage provider’s stock valued at $553,125,000 after purchasing an additional 1,883,769 shares during the last quarter. Hedge funds and other institutional investors 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.