Seagate Technology (NASDAQ:STX) Stock Price Down 7.9% – Should You Sell?

Seagate Technology Holdings PLC (NASDAQ:STX)’s share price was down 7.9% on Monday. The stock traded as low as $586.88 and last traded at $593.76. 5,424,904 shares traded hands during mid-day trading, an increase of 21% from the average session volume of 4,479,958 shares. The stock had previously closed at $644.58.

Key Seagate Technology News

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

• Positive Sentiment: Seagate reported a strong start to fiscal 2027: revenue rose 61% year over year, supported by AI-related demand, favorable pricing and greater adoption of its HAMR drives. The company also generated record cash flow. Seagate Revenue Soars 61% in Q1
• Positive Sentiment: Commentary suggests the selloff may overstate Seagate’s exposure to memory-price concerns: it has limited flash-memory exposure, and much of its drive supply is allocated under contracts through 2028. Seagate Sinks on Election and Memory-Price Worries
• Positive Sentiment: A reported $1.2 billion debt paydown, strong free cash flow and a higher dividend point to improved financial flexibility and increased shareholder returns. Seagate’s $1.2 Billion Debt Paydown
• Neutral Sentiment: CEO William D. Mosley and EVP John Morris disclosed share sales. The transactions were made under pre-arranged Rule 10b5-1 plans, which makes them less clearly a signal of a change in management’s outlook. Seagate Insider Sale
• Negative Sentiment: Investors broadly sold data-center and storage shares after the midterm elections, while concerns about memory prices weighed on the sector. Valuation worries may also leave STX vulnerable if growth expectations weaken.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Zacks Research downgraded shares of Seagate Technology from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. JPMorgan Chase & Co. increased their price objective on shares of Seagate Technology from $1,095.00 to $1,240.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. Weiss Ratings downgraded shares of Seagate Technology from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday. Wall Street Zen upgraded shares of Seagate Technology from a “buy” rating to a “strong-buy” rating in a report on Saturday, September 26th. Finally, Wedbush reissued an “outperform” rating and issued a $1,000.00 target price on shares of Seagate Technology in a research report on Wednesday, October 28th. Twenty-three investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,000.88.

Seagate Technology Stock Performance

The company has a market capitalization of $127.88 billion, a price-to-earnings ratio of 30.88 and a beta of 2.16. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.25 and a current ratio of 1.82. The firm has a 50-day simple moving average of $784.91 and a two-hundred day simple moving average of $692.44.

Seagate Technology (NASDAQ:STX) last issued its quarterly earnings results on Tuesday, October 27th. The data storage provider reported $7.68 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.44 by $0.24. Seagate Technology had a net margin of 31.86% and a return on equity of 252.47%. The company had revenue of $4.23 billion for the quarter, compared to analyst estimates of $4.15 billion. During the same period in the prior year, the firm earned $2.61 earnings per share. The business’s revenue for the quarter was up 61.0% compared to the same quarter last year. On average, sell-side analysts anticipate that Seagate Technology Holdings PLC will post 37.96 EPS for the current fiscal year.

Seagate Technology Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Wednesday, December 23rd will be issued a dividend of $0.76 per share. This is a boost from Seagate Technology’s previous quarterly dividend of $0.74. The ex-dividend date is Wednesday, December 23rd. This represents a $3.04 dividend on an annualized basis and a yield of 0.5%. Seagate Technology’s dividend payout ratio (DPR) is currently 15.55%.

Insider Buying and Selling at Seagate Technology

In other Seagate Technology news, EVP Ban Teh sold 52,730 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $782.08, for a total value of $41,239,078.40. Following the completion of the transaction, the executive vice president owned 5,810 shares in the company, valued at $4,543,884.80. The trade was a 90.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John Morris sold 15,466 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was 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 owned 31,132 shares of the company’s stock, valued at approximately $24,038,573.80. This trade represents a 33.19% 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 90 days, insiders sold 469,319 shares of company stock worth $373,883,846. 0.51% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Seagate Technology

Several large investors have recently bought and sold shares of the stock. Wellington Management Group LLP raised its holdings in shares of Seagate Technology by 2,655.9% in the 2nd quarter. Wellington Management Group LLP now owns 2,414,136 shares of the data storage provider’s stock valued at $2,329,641,000 after purchasing an additional 2,326,538 shares in the last quarter. Janus Henderson Group PLC grew its stake in shares of Seagate Technology by 3,872.1% during the first quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider’s stock worth $378,985,000 after purchasing an additional 943,170 shares in the last quarter. Amundi grew its stake in shares of Seagate Technology by 32.2% during the first quarter. Amundi now owns 965,565 shares of the data storage provider’s stock worth $378,267,000 after purchasing an additional 235,359 shares in the last quarter. National Pension Service increased its holdings in Seagate Technology by 0.8% in the second quarter. National Pension Service now owns 834,705 shares of the data storage provider’s stock valued at $805,490,000 after buying an additional 6,944 shares during the last quarter. Finally, Swedbank AB increased its holdings in Seagate Technology by 67.6% in the first quarter. Swedbank AB now owns 709,160 shares of the data storage provider’s stock valued at $277,821,000 after buying an additional 285,949 shares during the last quarter. Hedge funds and other institutional investors own 92.87% of the company’s stock.

Seagate Technology Company Profile

Seagate Technology Holdings plc (NASDAQ: STX) is a data storage company that develops and manufactures mass-capacity storage products and solutions. Its portfolio is centered on hard disk drives (HDDs) used in cloud data centers, enterprise systems, network-attached storage, video and imaging applications, and personal computers.

The company also provides storage-related services and solutions designed to help organizations store, manage, protect, and access large volumes of digital information.