Seagate Technology (NASDAQ:STX) Shares Down 4.7% – Here’s Why

Seagate Technology Holdings PLC (NASDAQ:STX)’s stock price dropped 4.7% on Tuesday . The stock traded as low as $786.01 and last traded at $827.64. 4,131,141 shares traded hands during mid-day trading, a decline of 3% from the average session volume of 4,240,286 shares. The stock had previously closed at $868.26.

Key Seagate Technology News

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

• Positive Sentiment: Seagate is being viewed as a likely candidate to beat upcoming earnings estimates again, supported by its strong history of earnings surprises and favorable setup heading into the report. Will Seagate (STX) Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: Analysts and market commentary continue to point to durable AI-related demand and tight supply in storage and memory, which supports pricing power and could help Seagate’s revenue and margins. Memory stocks rebound as analysts flag a buying opportunity
• Positive Sentiment: BofA recently reaffirmed a Buy rating on Seagate and raised its price target, reinforcing the bullish view that Seagate is benefiting from AI infrastructure spending and stronger hard-disk drive industry fundamentals. Is Seagate (STX) the Best Pick and Shovel AI Stock to Invest In?
• Neutral Sentiment: Seagate was also highlighted in a valuation-focused piece arguing the stock trades at a premium after a huge multi-year run, suggesting much of the good news may already be reflected in the share price. Seagate (STX) Stock Trades At A Premium As Its 14x Run Tests Fair Value
• Positive Sentiment: Broader sector coverage described Seagate as one of the beneficiaries of the rebound in semiconductor and memory stocks, helped by improving Wall Street sentiment and renewed buying interest after the recent selloff. Seagate, Semtech, and Teradyne Stocks Trade Up, What You Need To Know

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on STX shares. China Renaissance raised their price target on Seagate Technology from $802.00 to $983.00 in a research report on Friday, June 12th. Evercore upped their price objective on shares of Seagate Technology from $750.00 to $1,000.00 and gave the company an “outperform” rating in a research report on Tuesday, May 12th. Barclays increased their target price on Seagate Technology from $750.00 to $1,000.00 and gave the stock an “overweight” rating in a report on Wednesday, May 27th. TD Cowen upped their price target on shares of Seagate Technology from $500.00 to $850.00 and gave the stock a “buy” rating in a research report on Wednesday, April 29th. Finally, Wall Street Zen upgraded shares of Seagate Technology from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. Twenty-one analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $880.52.

Seagate Technology Trading Down 4.7%

The company has a market capitalization of $185.58 billion, a price-to-earnings ratio of 78.52 and a beta of 2.04. The company has a quick ratio of 0.85, a current ratio of 1.33 and a debt-to-equity ratio of 3.16. The company’s fifty day simple moving average is $858.93 and its two-hundred day simple moving average is $556.28.

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, topping analysts’ consensus estimates of $3.51 by $0.59. Seagate Technology had a return on equity of 1,005.65% and a net margin of 21.60%.The business had revenue of $3.11 billion for the quarter, compared to analyst estimates of $2.96 billion. During the same period in the previous year, the firm earned $1.90 EPS. The firm’s revenue was up 44.1% compared to the same quarter last year. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. Research analysts forecast that Seagate Technology Holdings PLC will post 14.14 earnings per share for the current fiscal year.

Seagate Technology Dividend Announcement

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 issued a dividend of $0.74 per share. The ex-dividend date is Wednesday, June 24th. This represents a $2.96 annualized dividend and a yield of 0.4%. Seagate Technology’s payout ratio is 28.08%.

Insider Activity at Seagate Technology

In related news, EVP John Christopher Morris sold 5,626 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $738.37, for a total value of $4,154,069.62. Following the transaction, the executive vice president directly owned 11,954 shares in the company, valued at approximately $8,826,474.98. This represents a 32.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 22,488 shares of the business’s 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 sale, the chief financial officer directly owned 42,847 shares of the company’s stock, valued at $33,173,004.34. This represents a 34.42% decrease in their ownership of the stock. 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. Insiders have sold 151,069 shares of company stock valued at $126,191,753 in the last three months. Insiders own 0.79% of the company’s stock.

Institutional Investors Weigh In On Seagate Technology

Several hedge funds have recently made changes to their positions in the company. Bridgewater Advisors Inc. raised its holdings in shares of Seagate Technology by 0.9% in the first quarter. Bridgewater Advisors Inc. now owns 1,477 shares of the data storage provider’s stock valued at $579,000 after buying an additional 13 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC grew its holdings in Seagate Technology by 23.1% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider’s stock worth $31,000 after acquiring an additional 15 shares during the last quarter. Beaumont Financial Advisors LLC grew its holdings in Seagate Technology by 2.1% during the 1st quarter. Beaumont Financial Advisors LLC now owns 820 shares of the data storage provider’s stock worth $321,000 after acquiring an additional 17 shares during the last quarter. Cornerstone Wealth Group LLC increased its position in Seagate Technology by 0.5% in the 1st quarter. Cornerstone Wealth Group LLC now owns 3,542 shares of the data storage provider’s stock valued at $1,388,000 after acquiring an additional 19 shares in the last quarter. Finally, WealthCollab LLC raised its stake in shares of Seagate Technology by 27.4% in the first quarter. WealthCollab LLC now owns 93 shares of the data storage provider’s stock worth $36,000 after acquiring an additional 20 shares during the last quarter. 92.87% of the stock is currently owned by institutional investors.

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.