Seagate Technology (NASDAQ:STX) Stock Falls 4.1% – Should You Sell?

Seagate Technology Holdings PLC (NASDAQ:STX)’s stock price dropped 4.1% during mid-day trading on Thursday. The company traded as low as $770.06 and last traded at $774.83. 4,819,477 shares traded hands during mid-day trading, an increase of 10% from the average daily volume of 4,377,359 shares. The stock had previously closed at $807.57.

Trending Headlines about Seagate Technology

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

• Positive Sentiment: AI workloads continue to generate substantial demand for low-cost, high-capacity HDD storage. Analysts view Seagate and Western Digital as potential beneficiaries of an HDD upcycle, although supply risks remain. Seagate vs. Western Digital: Which HDD Stock Has More Room to Run?
• Positive Sentiment: Seagate recently reported stronger-than-expected quarterly results, with earnings and revenue exceeding estimates and revenue rising sharply year over year. The company also provided bullish near-term earnings guidance, supporting the long-term growth case.
• Positive Sentiment: Seagate paid its dividend to shareholders, reinforcing its appeal to income-oriented investors. However, the stock’s substantial appreciation changes the dividend-yield calculation for new buyers. HP, Merck, and Seagate Just Paid Their Shareholders

Wall Street Analyst Weigh In

Several equities analysts have issued reports on STX shares. JPMorgan Chase & Co. lifted their target price on Seagate Technology from $1,095.00 to $1,240.00 and gave the company an “overweight” rating in a research note on Wednesday, July 29th. Fox Advisors lowered shares of Seagate Technology from an “overweight” rating to an “equal weight” rating in a research note on Monday, June 22nd. Rosenblatt Securities increased 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 report on Wednesday, July 29th. Melius Research started coverage on Seagate Technology in a research report on Monday, June 29th. They set a “buy” rating and a $1,600.00 price target on the stock. Finally, China Renaissance boosted their target price on shares of Seagate Technology from $802.00 to $983.00 in a research report on Friday, June 12th. Twenty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $986.00.

Seagate Technology Stock Performance

The company has a quick ratio of 1.17, a current ratio of 1.67 and a debt-to-equity ratio of 1.56. The stock has a market capitalization of $176.19 billion, a PE ratio of 55.82 and a beta of 2.06. The firm has a 50 day moving average price of $858.09 and a 200-day moving average price of $788.17.

Seagate Technology (NASDAQ:STX) last released its quarterly earnings data 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 analyst estimates of $3.50 billion. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. The business’s quarterly revenue was up 48.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.59 earnings per share. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. Research analysts expect that Seagate Technology Holdings PLC will post 35.7 EPS for the current fiscal year.

Seagate Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th were issued a $0.74 dividend. This represents a $2.96 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 24th. Seagate Technology’s payout ratio is 21.33%.

Insider Buying and Selling

In related news, CFO Gianluca Romano sold 49,984 shares of Seagate Technology stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $772.16, for a total transaction of $38,595,645.44. Following the completion of the transaction, the chief financial officer directly owned 70,756 shares in the company, valued at approximately $54,634,952.96. This trade represents a 41.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP John Morris sold 15,466 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $772.15, for a total value of $11,942,071.90. Following the completion of the transaction, the executive vice president directly owned 31,132 shares of the company’s stock, valued at $24,038,573.80. The trade was a 33.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 466,959 shares of company stock worth $378,840,741. Corporate insiders own 0.51% of the company’s stock.

Institutional Investors Weigh In On Seagate Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Wellington Management Group LLP lifted its position in shares of Seagate Technology by 2,655.9% during the 2nd quarter. Wellington Management Group LLP now owns 2,414,136 shares of the data storage provider’s stock valued at $2,329,641,000 after buying an additional 2,326,538 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in Seagate Technology by 8.3% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,193,063 shares of the data storage provider’s stock worth $879,338,000 after buying an additional 243,551 shares during the last quarter. National Pension Service boosted its stake in Seagate Technology by 0.8% during the second quarter. National Pension Service now owns 834,705 shares of the data storage provider’s stock worth $805,490,000 after buying an additional 6,944 shares during the last quarter. Deutsche Bank AG grew its holdings in Seagate Technology by 102.0% in the 4th quarter. Deutsche Bank AG now owns 1,599,962 shares of the data storage provider’s stock valued at $440,614,000 after buying an additional 807,962 shares in the last quarter. Finally, Janus Henderson Group PLC grew its holdings in Seagate Technology by 3,872.1% in the 1st quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider’s stock valued at $378,985,000 after buying an additional 943,170 shares in the last quarter. Institutional investors and hedge funds own 92.87% of the company’s stock.

Seagate Technology Company Profile

Seagate Technology Holdings plc is a data storage technology company that designs, manufactures and supplies solutions for storing, managing and accessing digital information. Its product portfolio is centered on hard disk drives (HDDs), including high-capacity drives used in cloud data centers, enterprise environments, surveillance systems, network-attached storage and personal computing.

The company also offers solid-state drives (SSDs), storage systems, external storage products and related services.