Seagate Technology (NASDAQ:STX) Shares Up 7.8% on Earnings Beat

Seagate Technology Holdings PLC (NASDAQ:STX)’s stock price traded up 7.8% on Wednesday following a better than expected earnings announcement. The stock traded as high as $806.99 and last traded at $805.6840. 4,436,278 shares were traded during mid-day trading, an increase of 2% from the average daily volume of 4,361,423 shares. The stock had previously closed at $747.30.

The data storage provider reported $5.71 EPS for the quarter, topping the consensus estimate of $5.10 by $0.61. Seagate Technology had a return on equity of 1,005.65% and a net margin of 21.60%.The business had revenue of $3.63 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same quarter in the previous year, the firm earned $2.59 EPS. The company’s quarterly revenue was up 48.5% compared to the same quarter last year. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS.

Seagate Technology Announces Dividend

The firm 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 $0.74 dividend. The ex-dividend date is Thursday, September 24th. This represents a $2.96 annualized dividend and a yield of 0.4%. Seagate Technology’s payout ratio is 28.08%.

Key Seagate Technology News

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

• Positive Sentiment: Seagate reported fiscal Q4 non-GAAP EPS of $5.71, exceeding the $5.10 consensus estimate, while revenue rose 48.5% year over year to $3.63 billion, above expectations of approximately $3.50 billion. Seagate fiscal fourth-quarter results
• Positive Sentiment: Management forecast fiscal Q1 2027 revenue of $4.0 billion to $4.2 billion and EPS of $7.10 to $7.50, well above analyst expectations of roughly $3.7 billion in revenue and $5.63 in EPS. The outlook points to continued momentum from AI infrastructure and cloud-storage demand. Seagate upbeat forecast
• Positive Sentiment: Investors highlighted record profitability, fiscal 2026 annual revenue growth of 34%, and record free cash flow of $3.1 billion. Seagate also cited durable data-center demand, progress with its HAMR and Mozaic storage technologies, margin expansion and strong cash generation. Seagate earnings call highlights
• Positive Sentiment: Several analysts raised their targets following the results: Wells Fargo to $1,180, Rosenblatt to $1,400, Citigroup to $1,300, Wedbush to $1,000 and Susquehanna to $875. Cantor Fitzgerald reaffirmed an overweight rating with a $1,300 target, reinforcing bullish expectations for AI-related storage growth.
• Neutral Sentiment: Seagate’s quarterly dividend was declared at $0.74 per share, payable October 7 to shareholders of record September 24. The approximately 0.4% yield is supportive but unlikely to be a major near-term trading catalyst.
• Negative Sentiment: The broader memory and storage sector remains volatile, with SanDisk and Micron falling amid concerns about AI-trade sustainability and potential valuation contraction. Seagate’s elevated valuation and the fact that its shares had already priced in significant optimism could limit further gains if future results or guidance fall short.

Analysts Set New Price Targets

STX has been the subject of a number of recent research reports. Cantor Fitzgerald reiterated an “overweight” rating and issued a $1,300.00 target price on shares of Seagate Technology in a research note on Wednesday. BNP Paribas Exane lifted their target price on Seagate Technology from $530.00 to $860.00 and gave the stock an “outperform” rating in a report on Wednesday, April 29th. Wells Fargo & Company lifted their price objective on shares of Seagate Technology from $1,100.00 to $1,180.00 and gave the stock an “overweight” rating in a research report on Wednesday. Zacks Research downgraded Seagate Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, June 29th. Finally, Morgan Stanley reaffirmed an “overweight” rating and issued a $1,187.00 price target on shares of Seagate Technology in a research note on Wednesday. Twenty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Seagate Technology currently has a consensus rating of “Moderate Buy” and an average price target of $957.20.

Insider Buying and Selling at Seagate Technology

In other news, CFO Gianluca Romano sold 22,488 shares of the company’s stock in a transaction that occurred 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 transaction, the chief financial officer owned 42,847 shares of the company’s stock, valued at approximately $33,173,004.34. This represents a 34.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John Christopher Morris sold 5,626 shares of the firm’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 transaction of $4,154,069.62. Following the completion of the sale, the executive vice president owned 11,954 shares in the company, valued at $8,826,474.98. This represents a 32.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 151,069 shares of company stock worth $126,191,753 in the last three months. 0.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Seagate Technology

Institutional investors have recently made changes to their positions in the stock. Integrated Wealth Concepts LLC grew its holdings in Seagate Technology by 168.0% during the 1st quarter. Integrated Wealth Concepts LLC now owns 7,177 shares of the data storage provider’s stock worth $610,000 after acquiring an additional 4,499 shares during the period. Sivia Capital Partners LLC bought a new position in Seagate Technology during the 2nd quarter worth approximately $262,000. Cerity Partners LLC raised its holdings in Seagate Technology by 25.8% during the 2nd quarter. Cerity Partners LLC now owns 36,682 shares of the data storage provider’s stock valued at $5,294,000 after buying an additional 7,517 shares during the last quarter. Sei Investments Co. raised its stake in shares of Seagate Technology by 64.8% during the second quarter. Sei Investments Co. now owns 8,543 shares of the data storage provider’s stock valued at $1,233,000 after acquiring an additional 3,358 shares during the last quarter. Finally, The Manufacturers Life Insurance Company lifted its position in Seagate Technology by 0.4% during the second quarter. The Manufacturers Life Insurance Company now owns 127,887 shares of the data storage provider’s stock valued at $18,458,000 after buying an additional 462 shares during the period. Institutional investors own 92.87% of the company’s stock.

Seagate Technology Trading Up 5.8%

The firm’s 50 day moving average price is $894.95 and its 200-day moving average price is $618.98. The company has a debt-to-equity ratio of 3.16, a current ratio of 1.33 and a quick ratio of 0.85. The stock has a market cap of $177.29 billion, a P/E ratio of 75.02 and a beta of 2.04.

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.