Seagate Technology (NASDAQ:STX) Shares Gap Down – Should You Sell?

Seagate Technology Holdings PLC (NASDAQ:STX) shares gapped down before the market opened on Tuesday. The stock had previously closed at $753.25, but opened at $693.93. Seagate Technology shares last traded at $718.3320, with a volume of 1,327,126 shares traded.

Key Seagate Technology News

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

• Positive Sentiment: Analysts have not reduced their earnings estimates following Seagate’s recent selloff, while the average price target implies substantial upside from current levels. This suggests Wall Street largely continues to expect strong demand for Seagate’s hard drives, which support cloud infrastructure and AI data storage. Rapid Growth, High Volatility, and Near 50% Upside Confound Seagate Technology Investors
• Positive Sentiment: Longer-term coverage remains bullish on Seagate’s role in the AI infrastructure buildout. The company’s hard-drive business may benefit from rising data volumes without requiring exposure to the memory-chip manufacturing race. If You Invest $1,000 in Seagate Today, Here’s What It Could Be Worth by 2030
• Neutral Sentiment: Seagate recently underperformed other major technology stocks, highlighting investor caution after a powerful prior rally. The disparity between market performance and unchanged earnings expectations could increase volatility until the company provides fresh operating updates. Seagate Technology Holdings PLC stock underperforms Monday when compared to competitors
• Negative Sentiment: A selloff in Asian memory stocks, led by SK Hynix, spread to U.S. storage companies. News that Chinese memory producer CXMT is making progress on competing technology raised concerns about future industry competition and pressured Seagate despite the company not producing DRAM. SanDisk Drops 6% in Memory Selloff Despite Making No DRAM; Seagate Slides 4%
• Negative Sentiment: Investors are also reassessing high-growth technology shares amid rising global bond yields and tighter financial conditions. That backdrop makes Seagate’s elevated valuation and historically high volatility more vulnerable to profit-taking, even with strong expected earnings growth.

Wall Street Analyst Weigh In

STX has been the subject of a number of recent research reports. Rosenblatt Securities boosted their target price on shares of Seagate Technology from $1,300.00 to $1,400.00 and gave the company a “buy” rating in a research report on Wednesday, July 29th. Fox Advisors downgraded shares of Seagate Technology from an “overweight” rating to an “equal weight” rating in a research note on Monday, June 22nd. Morgan Stanley raised their price target on shares of Seagate Technology from $1,035.00 to $1,187.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $1,300.00 price objective on shares of Seagate Technology in a research note on Wednesday, July 29th. Finally, Susquehanna lifted their price objective on shares of Seagate Technology from $775.00 to $875.00 and gave the stock a “neutral” 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 stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $986.00.

Seagate Technology Stock Down 3.1%

The firm has a market cap of $166.04 billion, a price-to-earnings ratio of 52.70 and a beta of 2.06. 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 50-day moving average of $853.54 and a 200-day moving average of $795.71.

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. The firm had revenue of $3.63 billion during the quarter, compared to analysts’ expectations of $3.50 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%. The company’s quarterly revenue was up 48.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.59 EPS. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. Sell-side analysts predict that Seagate Technology Holdings PLC will post 35.70 EPS for the current fiscal year.

Seagate Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th were paid 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 was Thursday, September 24th. Seagate Technology’s dividend payout ratio is presently 21.33%.

Insider Activity

In other Seagate Technology news, EVP John Morris sold 15,466 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $772.15, for a total transaction of $11,942,071.90. Following the completion of the transaction, the executive vice president directly owned 31,132 shares in the company, valued at $24,038,573.80. The trade was a 33.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Gianluca Romano sold 49,984 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $772.16, for a total value of $38,595,645.44. Following the transaction, the chief financial officer directly owned 70,756 shares of the company’s stock, valued at $54,634,952.96. This trade represents a 41.40% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 466,959 shares of company stock valued at $378,840,741. 0.51% of the stock is owned by insiders.

Hedge Funds Weigh In On Seagate Technology

Large investors have recently bought and sold shares of the company. Retirement Wealth Solutions LLC raised its stake in shares of Seagate Technology by 70.6% in the second quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider’s stock worth $28,000 after purchasing an additional 12 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC lifted its position in shares of 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 buying an additional 15 shares in the last quarter. WealthCollab LLC lifted its position in shares of Seagate Technology by 27.4% during the 1st quarter. WealthCollab LLC now owns 93 shares of the data storage provider’s stock worth $36,000 after buying an additional 20 shares in the last quarter. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Seagate Technology in the 4th quarter worth approximately $37,000. Finally, McMillan Office Inc. purchased a new position in shares of Seagate Technology in the 1st quarter worth approximately $39,000. 92.87% of the stock is currently owned by institutional investors.

About Seagate Technology

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.