Seagate Technology (NASDAQ:STX) Trading 1.8% Higher – Still a Buy?

Seagate Technology Holdings PLC (NASDAQ:STX) rose 1.8% during mid-day trading on Thursday . The company traded as high as $874.97 and last traded at $852.95. Approximately 5,551,559 shares changed hands during mid-day trading, an increase of 25% from the average session volume of 4,432,459 shares. The stock had previously closed at $837.66.

Seagate Technology News Roundup

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

• Positive Sentiment: Analysts raised Seagate’s estimated fair value from $959.48 to $1,115.87, citing stronger hard-drive pricing power, AI-related storage demand, and improving expectations for margins and cash generation. Seagate stock fair value rises after analysts lift storage demand
• Positive Sentiment: Jim Cramer argued that Seagate’s recent earnings were not poor, reinforcing the view that the company remains a beneficiary of AI-related demand. Seagate previously exceeded quarterly earnings and revenue expectations and issued strong forward EPS guidance. Jim Cramer discusses Seagate earnings
• Neutral Sentiment: Seagate remains one of the growth stocks highlighted for August, with analysts pointing to continued AI-driven demand as a potential long-term opportunity. Top-ranked growth stocks for August
• Negative Sentiment: Western Digital’s earnings beat was overshadowed by guidance that failed to meet extremely high investor expectations. Because Seagate and Western Digital compete in hard-disk drives, the disappointment triggered broader selling across memory and storage stocks. Why Western Digital stock is sinking
• Negative Sentiment: Shares across the sector, including Seagate, Western Digital, Sandisk, Micron and SK Hynix, continued to weaken as investors questioned whether AI-related memory demand and pricing can sustain current valuations.
• Negative Sentiment: SK Hynix’s approval of roughly $38 billion for two new memory fabrication plants heightened concerns about future capacity expansion, capital spending and a possible oversupply cycle in 2027. SK Hynix approves new memory fabs

Analyst Upgrades and Downgrades

STX has been the subject of several research reports. Citigroup increased their price objective on shares of Seagate Technology from $1,240.00 to $1,300.00 and gave the company a “buy” rating in a report on Wednesday, July 29th. BNP Paribas Exane boosted their target price on Seagate Technology from $530.00 to $860.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 29th. Melius Research assumed coverage on Seagate Technology in a research note on Monday, June 29th. They set a “buy” rating and a $1,600.00 price target for the company. Zacks Research upgraded Seagate Technology from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 28th. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $1,300.00 price objective on shares of Seagate Technology in a research note on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $986.00.

Seagate Technology Trading Down 4.7%

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’s fifty day moving average is $894.71 and its 200 day moving average is $645.87. The stock has a market cap of $184.21 billion, a P/E ratio of 58.56 and a beta of 2.06.

Seagate Technology (NASDAQ:STX) last released its quarterly earnings results on Tuesday, July 28th. 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 369.98% and a net margin of 26.11%.The company had revenue of $3.63 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same quarter last year, the business posted $2.59 earnings per share. The firm’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. As a group, equities research analysts predict that Seagate Technology Holdings PLC will post 33.08 earnings per share for the current fiscal year.

Seagate Technology Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th will be given a dividend of $0.74 per share. The ex-dividend date of this dividend is 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 Activity at Seagate Technology

In related news, EVP James Ci Lee sold 694 shares of the firm’s stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $877.45, for a total value of $608,950.30. Following the completion of the sale, the executive vice president directly owned 347 shares in the company, valued at $304,475.15. This trade represents a 66.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 903 shares of the stock in a transaction on Friday, June 12th. The shares were sold at an average price of $880.19, for a total transaction of $794,811.57. Following the completion of the sale, the chief financial officer directly owned 42,860 shares in the company, valued at approximately $37,724,943.40. This represents a 2.06% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 149,638 shares of company stock worth $126,692,095 in the last ninety days. Corporate insiders own 0.79% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of STX. State Street Corp boosted its holdings in Seagate Technology by 1.0% during the 4th quarter. State Street Corp now owns 9,370,805 shares of the data storage provider’s stock valued at $2,587,535,000 after acquiring an additional 94,527 shares during the period. Morgan Stanley increased its stake in Seagate Technology by 5.1% in the fourth quarter. Morgan Stanley now owns 5,317,516 shares of the data storage provider’s stock worth $1,464,391,000 after purchasing an additional 258,151 shares during the period. Geode Capital Management LLC lifted its position in shares of Seagate Technology by 5.0% during the fourth quarter. Geode Capital Management LLC now owns 4,896,815 shares of the data storage provider’s stock worth $1,343,683,000 after purchasing an additional 234,436 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Seagate Technology by 8.3% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,193,063 shares of the data storage provider’s stock worth $879,338,000 after purchasing an additional 243,551 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its stake in shares of Seagate Technology by 1,510.1% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 2,008,516 shares of the data storage provider’s stock valued at $553,125,000 after purchasing an additional 1,883,769 shares during the period. Institutional investors own 92.87% of the company’s stock.

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.