Seagate Technology (NASDAQ:STX) Shares Down 3.8% – Here’s Why

Seagate Technology Holdings PLC (NASDAQ:STX) shares fell 3.8% during trading on Monday. The company traded as low as $750.68 and last traded at $753.25. Approximately 4,072,240 shares changed hands during trading, a decline of 7% from the average daily volume of 4,374,824 shares. The stock had previously closed at $783.00.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on STX. Rosenblatt Securities raised their target price on Seagate Technology from $1,300.00 to $1,400.00 and gave the company a “buy” rating in a research note on Wednesday, July 29th. Argus lifted their target price on Seagate Technology from $750.00 to $900.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Wells Fargo & Company upped 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 report on Wednesday, July 29th. Morgan Stanley increased their target price on shares of Seagate Technology from $1,035.00 to $1,187.00 and gave the company an “overweight” rating in a research report on Wednesday, July 29th. Finally, JPMorgan Chase & Co. raised their target price on shares of 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. 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, the company currently has a consensus rating of “Moderate Buy” and an average price target of $986.00.

Seagate Technology Stock Down 3.8%

The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.17 and a current ratio of 1.67. The stock has a 50 day moving average price of $855.09 and a 200 day moving average price of $793.39. The company has a market cap of $171.28 billion, a P/E ratio of 54.27 and a beta of 2.06.

Seagate Technology (NASDAQ:STX) last announced its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share for the quarter, beating the consensus estimate of $5.10 by $0.61. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%. The business had revenue of $3.63 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same quarter in the prior year, the firm posted $2.59 earnings per share. The company’s revenue was up 48.5% on a year-over-year basis. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. Research analysts expect that Seagate Technology Holdings PLC will post 35.70 earnings per share for the current fiscal year.

Seagate Technology Announces Dividend

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

Insider Buying and Selling at Seagate Technology

In related news, CFO Gianluca Romano sold 49,984 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $772.16, for a total value of $38,595,645.44. Following the sale, the chief financial officer directly owned 70,756 shares in the company, valued at $54,634,952.96. The trade was a 41.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Ban Teh sold 52,730 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $782.08, for a total transaction of $41,239,078.40. Following the sale, the executive vice president directly owned 5,810 shares of the company’s stock, valued at approximately $4,543,884.80. This represents a 90.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 466,959 shares of company stock worth $378,840,741. 0.51% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. NewEdge Advisors LLC raised its position in shares of Seagate Technology by 85.9% during the first quarter. NewEdge Advisors LLC now owns 22,046 shares of the data storage provider’s stock worth $8,637,000 after purchasing an additional 10,190 shares during the period. UNICOM Systems Inc. increased its stake in Seagate Technology by 18.2% in the 2nd quarter. UNICOM Systems Inc. now owns 43,500 shares of the data storage provider’s stock worth $41,978,000 after purchasing an additional 6,700 shares in the last quarter. USA Financial Formulas purchased a new position in Seagate Technology in the 1st quarter worth about $1,328,000. Financial Insights Inc. acquired a new stake in Seagate Technology during the 2nd quarter worth about $706,000. Finally, Silverleafe Capital Partners LLC acquired a new stake in Seagate Technology during the 3rd quarter worth about $820,000. Institutional investors 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.