Seagate Technology (NASDAQ:STX) Trading Down 1.4% – Here’s Why

Seagate Technology Holdings PLC (NASDAQ:STX)’s share price dropped 1.4% on Tuesday . The stock traded as low as $802.05 and last traded at $816.64. 2,345,149 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 4,377,436 shares. The stock had previously closed at $828.38.

Seagate Technology News Roundup

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

• Positive Sentiment: AI data-center expansion is increasing demand for mass-capacity storage, including conventional hard drives, NAND flash and DRAM. Seagate is positioned to benefit as AI workloads create a growing data-storage bottleneck. AI’s memory stack: What investors need to know
• Positive Sentiment: Recent coverage highlights Seagate’s HAMR advances and improving cash flow as additional catalysts. The company’s latest quarterly results also exceeded expectations, with earnings and revenue above consensus and revenue up 48.5% year over year; management’s next-quarter earnings guidance is strong. Seagate’s YTD Gains are Double the Industry
• Positive Sentiment: Wall Street remains constructive, with analysts suggesting the AI-storage trade may have further room to run. A separate report also describes Seagate as potentially undervalued based on discounted-cash-flow estimates, while Wall Street Zen upgraded the shares to Strong Buy. Forget Nvidia. This AI Stock Is Selling the Storage Behind the Boom
• Neutral Sentiment: Seagate’s appearance at an AI-focused conference has increased visibility into its role in the data-center ecosystem, but it also raises the question of whether the strong AI narrative is already reflected in the stock’s valuation. Seagate Heads to AI Summit
• Negative Sentiment: Valuation and execution risks are limiting enthusiasm. After an extraordinary multi-year advance, Seagate trades at elevated earnings multiples, leaving the shares vulnerable if AI-related demand, HAMR production or future cash-flow expectations fall short. Recent selling across concentrated AI and semiconductor investments also highlights volatility risk. Seagate Stock May Be 30% Undervalued on AI Bubble Fears

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Zacks Research upgraded shares of Seagate Technology from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 28th. TD Cowen raised their target price on shares of Seagate Technology from $850.00 to $1,000.00 and gave the stock a “buy” rating in a report on Wednesday, July 29th. JPMorgan Chase & Co. boosted their target price on Seagate Technology from $1,095.00 to $1,240.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. Bank of America upped their target price on Seagate Technology from $1,000.00 to $1,150.00 and gave the company a “buy” rating in a report on Wednesday, July 1st. Finally, Argus upped their price target on shares of Seagate Technology from $750.00 to $900.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. One 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 company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $986.00.

Seagate Technology Stock Down 1.4%

The business has a 50 day simple moving average of $865.57 and a 200 day simple moving average of $700.60. The company has a debt-to-equity ratio of 1.56, a current ratio of 1.67 and a quick ratio of 1.17. The stock has a market cap of $185.09 billion, a PE ratio of 58.84 and a beta of 2.06.

Seagate Technology (NASDAQ:STX) last released its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.10 by $0.61. The business had revenue of $3.63 billion during 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%. Seagate Technology’s quarterly revenue was up 48.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.59 EPS. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. On average, equities research analysts forecast that Seagate Technology Holdings PLC will post 35.7 EPS for the current fiscal year.

Seagate Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th will be issued a dividend of $0.74 per share. This represents a $2.96 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Thursday, September 24th. Seagate Technology’s dividend payout ratio is 21.33%.

Insider Buying and Selling

In other Seagate Technology news, CFO Gianluca Romano sold 9,076 shares of the firm’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $849.35, for a total value of $7,708,700.60. Following the sale, the chief financial officer directly owned 22,997 shares in the company, valued at $19,532,501.95. This trade represents a 28.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO William D. Mosley sold 18,138 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $849.35, for a total transaction of $15,405,510.30. Following the transaction, the chief executive officer owned 298,483 shares in the company, valued at approximately $253,516,536.05. The trade was a 5.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 162,015 shares of company stock valued at $137,693,196 in the last ninety days. Company insiders own 0.79% of the company’s stock.

Institutional Investors Weigh In On Seagate Technology

A number of institutional investors have recently added to or reduced their stakes in STX. Integrated Wealth Concepts LLC increased its position in shares of Seagate Technology by 168.0% during the first quarter. Integrated Wealth Concepts LLC now owns 7,177 shares of the data storage provider’s stock valued at $610,000 after purchasing an additional 4,499 shares during the period. Sivia Capital Partners LLC acquired a new position in shares of Seagate Technology in the 2nd quarter valued at $262,000. Cerity Partners LLC lifted its holdings in shares of Seagate Technology by 25.8% during the 2nd quarter. Cerity Partners LLC now owns 36,682 shares of the data storage provider’s stock worth $5,294,000 after acquiring an additional 7,517 shares during the period. Sei Investments Co. raised its position in Seagate Technology by 64.8% in the second quarter. Sei Investments Co. now owns 8,543 shares of the data storage provider’s stock worth $1,233,000 after purchasing an additional 3,358 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its position in Seagate Technology by 0.4% in the second quarter. The Manufacturers Life Insurance Company now owns 127,887 shares of the data storage provider’s stock worth $18,458,000 after purchasing an additional 462 shares in the last quarter. 92.87% of the stock is owned by institutional investors and hedge funds.

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.