Seagate Technology (NASDAQ:STX) Shares Climb 2.1% – What’s Next?

Seagate Technology Holdings PLC (NASDAQ:STX) shares were up 2.1% on Tuesday. The stock traded as high as $626.40 and last traded at $606.38. Approximately 4,714,040 shares traded hands during mid-day trading, an increase of 5% from the average session volume of 4,479,379 shares. The stock had previously closed at $593.76.

Trending Headlines about Seagate Technology

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

• Positive Sentiment: Seagate’s reported $1.2 billion debt paydown, strong free cash flow and higher dividend point to greater capacity for shareholder returns. The article notes that valuation remains a concern. Seagate’s $1.2 Billion Debt Paydown: What Comes Next for Investors?
• Positive Sentiment: Seagate’s fiscal second-quarter outlook points to stronger revenue and earnings, supported by cloud demand, pricing and an accelerating HAMR drive rollout. Execution remains important to delivering that growth. Seagate Q2 Outlook Signals Stronger Growth as HAMR Ramp Accelerates
• Neutral Sentiment: A broader rebound in chip stocks provided a more favorable backdrop for technology shares, though the article does not identify a Seagate-specific catalyst. Micron, Nvidia, and AMD lead chip stocks’ rebound
• Neutral Sentiment: A look at Seagate’s decade-long returns highlights its past outperformance, but leaves open whether AI-driven demand can sustain further gains. Seagate Was Supposed to Lose to SSDs
• Negative Sentiment: Despite stronger operating results, STX has fallen sharply over the past month. Analysts cite its rich valuation and risks around executing on growth as reasons investors may remain cautious. STX Falls as Risks Test AI Storage Momentum

Wall Street Analysts Forecast Growth

STX has been the topic of several research analyst reports. UBS Group reaffirmed a “buy” rating on shares of Seagate Technology in a research report on Monday. Rosenblatt Securities lowered their price objective on Seagate Technology from $1,400.00 to $1,100.00 and set a “buy” rating for the company in a report on Monday, October 26th. Robert W. Baird set a $1,350.00 price objective on Seagate Technology in a report on Wednesday, October 28th. Cantor Fitzgerald cut their price objective on Seagate Technology from $1,300.00 to $1,000.00 and set an “overweight” rating on the stock in a research note on Monday, October 26th. Finally, JPMorgan Chase & Co. increased their target price on Seagate Technology from $1,095.00 to $1,240.00 and gave the stock an “overweight” rating in a report on Wednesday, July 29th. Twenty-three analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $1,000.88.

Seagate Technology Price Performance

The business has a 50 day simple moving average of $793.96 and a 200-day simple moving average of $689.79. The company has a market capitalization of $137.88 billion, a P/E ratio of 31.85 and a beta of 2.06. The company has a quick ratio of 1.17, a current ratio of 1.82 and a debt-to-equity ratio of 0.68.

Seagate Technology (NASDAQ:STX) last issued its quarterly earnings data on Tuesday, October 27th. The data storage provider reported $7.68 earnings per share for the quarter, beating the consensus estimate of $7.44 by $0.24. Seagate Technology had a net margin of 31.86% and a return on equity of 252.47%. The firm had revenue of $4.23 billion for the quarter, compared to the consensus estimate of $4.15 billion. During the same period last year, the firm posted $2.61 EPS. Seagate Technology’s quarterly revenue was up 61.0% compared to the same quarter last year. Analysts predict that Seagate Technology Holdings PLC will post 37.44 EPS for the current fiscal year.

Seagate Technology Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Wednesday, December 23rd will be paid a $0.76 dividend. The ex-dividend date of this dividend is Wednesday, December 23rd. This is a positive change from Seagate Technology’s previous quarterly dividend of $0.74. This represents a $3.04 annualized dividend and a dividend yield of 0.5%. Seagate Technology’s dividend payout ratio (DPR) is currently 15.55%.

Insiders Place Their Bets

In related news, EVP Ban Teh sold 52,730 shares of the company’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $782.08, for a total value of $41,239,078.40. Following the completion of the sale, the executive vice president owned 5,810 shares of the company’s stock, valued at $4,543,884.80. This represents a 90.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John Morris sold 15,466 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $772.15, for a total transaction of $11,942,071.90. Following the transaction, the executive vice president directly owned 31,132 shares in the company, valued at approximately $24,038,573.80. The trade was a 33.19% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 436,644 shares of company stock valued at $353,934,542 over the last three months. 0.51% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Seagate Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP grew its holdings in Seagate Technology by 2,655.9% during the second 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 purchasing an additional 2,326,538 shares during the last quarter. Janus Henderson Group PLC raised its position in shares of Seagate Technology by 3,872.1% in the first quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider’s stock valued at $378,985,000 after purchasing an additional 943,170 shares during the period. Swedbank AB lifted its stake in shares of Seagate Technology by 67.6% in the first quarter. Swedbank AB now owns 709,160 shares of the data storage provider’s stock worth $277,821,000 after buying an additional 285,949 shares during the last quarter. Amundi lifted its stake in shares of Seagate Technology by 32.2% in the first quarter. Amundi now owns 965,565 shares of the data storage provider’s stock worth $378,267,000 after buying an additional 235,359 shares during the last quarter. Finally, Hsbc Holdings PLC boosted its holdings in shares of Seagate Technology by 119.7% during the 1st quarter. Hsbc Holdings PLC now owns 378,527 shares of the data storage provider’s stock worth $147,753,000 after buying an additional 206,196 shares during the period. Institutional investors own 92.87% of the company’s stock.

Seagate Technology Company Profile

Seagate Technology Holdings plc (NASDAQ: STX) is a data storage company that develops and manufactures mass-capacity storage products and solutions. Its portfolio is centered on hard disk drives (HDDs) used in cloud data centers, enterprise systems, network-attached storage, video and imaging applications, and personal computers.

The company also provides storage-related services and solutions designed to help organizations store, manage, protect, and access large volumes of digital information.