Jefferies Group LLC downgraded shares of Seagate Technology PLC (NASDAQ:STX) from a buy rating to a hold rating in a research note issued to investors on Monday, September 11th, Marketbeat.com reports. They currently have $29.00 price objective on the data storage provider’s stock, down from their previous price objective of $40.00.
“continues to struggle with product quality issues” around Helium. Also, pricing in Nearline drives has also fallen more quickly than normal as of late and that for each 1-percent incremental price pressure in nearline, the company’s third-quarter earnings per share will be impacted by 4 cents.In addition, the company’s woes in the Helium drives segment is particularly concerning since over 40 percent of the company’s gross profit comes from the segment.Bottom line, the analyst’s prior bullish stance was based on Seagate’s success in helium drives among hyperscale customers, which was viewed as the “most interesting,” Jefferies Group LLC’s analyst wrote.
STX has been the topic of several other reports. Benchmark Co. lowered shares of Seagate Technology PLC from a buy rating to a hold rating in a research report on Tuesday, July 25th. BidaskClub lowered shares of Seagate Technology PLC from a strong-buy rating to a buy rating in a research report on Monday, July 31st. Zacks Investment Research raised shares of Seagate Technology PLC from a sell rating to a hold rating in a report on Tuesday, July 25th. Evercore ISI began coverage on shares of Seagate Technology PLC in a report on Friday, June 16th. They set an in-line rating and a $48.00 price target for the company. Finally, Citigroup Inc. cut their price target on shares of Seagate Technology PLC from $42.00 to $36.00 and set a neutral rating for the company in a report on Wednesday, July 26th. Five analysts have rated the stock with a sell rating, twenty-two have given a hold rating, six have given a buy rating and two have assigned a strong buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus target price of $40.48.
Shares of Seagate Technology PLC (STX) opened at 32.72 on Monday. Seagate Technology PLC has a 52-week low of $30.60 and a 52-week high of $50.96. The stock’s 50 day moving average price is $32.26 and its 200-day moving average price is $40.25. The firm has a market cap of $9.42 billion, a PE ratio of 12.68 and a beta of 1.69.
Seagate Technology PLC (NASDAQ:STX) last issued its earnings results on Tuesday, July 25th. The data storage provider reported $0.65 earnings per share for the quarter, missing the consensus estimate of $0.99 by ($0.34). Seagate Technology PLC had a net margin of 7.17% and a return on equity of 81.87%. The business had revenue of $2.41 billion for the quarter, compared to analyst estimates of $2.56 billion. During the same quarter last year, the firm posted $0.69 earnings per share. Seagate Technology PLC’s revenue was down 9.3% on a year-over-year basis. On average, equities research analysts anticipate that Seagate Technology PLC will post $3.66 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 4th. Stockholders of record on Wednesday, September 20th will be given a $0.63 dividend. This represents a $2.52 annualized dividend and a dividend yield of 7.70%. The ex-dividend date is Tuesday, September 19th. Seagate Technology PLC’s payout ratio is presently 97.67%.
In related news, insider Philip G. Brace acquired 1,000 shares of the company’s stock in a transaction dated Tuesday, August 1st. The shares were bought at an average cost of $33.34 per share, with a total value of $33,340.00. Following the completion of the transaction, the insider now directly owns 62,855 shares of the company’s stock, valued at $2,095,585.70. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. 0.87% of the stock is owned by corporate insiders.
Several institutional investors and hedge funds have recently modified their holdings of the company. W. E. Donoghue & Co. LLC bought a new position in shares of Seagate Technology PLC in the second quarter valued at about $14,603,000. Intl Fcstone Inc. bought a new position in shares of Seagate Technology PLC in the second quarter valued at about $772,000. Achmea Investment Management B.V. raised its position in shares of Seagate Technology PLC by 41.9% in the second quarter. Achmea Investment Management B.V. now owns 78,661 shares of the data storage provider’s stock valued at $3,045,000 after purchasing an additional 23,230 shares during the period. USA Financial Portformulas Corp raised its position in shares of Seagate Technology PLC by 476.9% in the second quarter. USA Financial Portformulas Corp now owns 68,690 shares of the data storage provider’s stock valued at $2,662,000 after purchasing an additional 56,784 shares during the period. Finally, Kimelman & Baird LLC raised its position in shares of Seagate Technology PLC by 0.5% in the second quarter. Kimelman & Baird LLC now owns 300,600 shares of the data storage provider’s stock valued at $11,648,000 after purchasing an additional 1,350 shares during the period. 90.00% of the stock is currently owned by institutional investors.
Seagate Technology PLC Company Profile
Seagate Technology public limited company is a provider of electronic data storage technology and solutions. The Company’s principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid state hybrid drives, solid state drives, peripheral component interconnect express (PCIe) cards and serial advanced technology architecture (SATA) controllers.
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