Seagate Technology (NASDAQ:STX) Shares Up 2.2% – Here’s What Happened

Shares of Seagate Technology Holdings PLC (NASDAQ:STX) shot up 2.2% during mid-day trading on Monday. The company traded as high as $665.55 and last traded at $644.21. Approximately 4,245,466 shares changed hands during trading, a decline of 4% from the average session volume of 4,409,510 shares. The stock had previously closed at $630.49.

Seagate Technology News Summary

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

• Positive Sentiment: Strong HDD demand supports earnings outlook: Analysts project that Seagate will exceed fiscal first-quarter 2027 earnings expectations, helped by surging AI and cloud infrastructure demand, improved pricing and increased adoption of its Mozaic technology. Management’s guidance calls for EPS of $7.10 to $7.50. Seagate Technology Q1 preview: Analysts project earnings beat amid strong HDD demand
• Positive Sentiment: AI storage partnership expands Seagate’s addressable market: Seagate announced expanded interoperability between its high-capacity HAMR and SMR storage technologies and Broadcom platforms. The solution has been validated for hyperscale deployment by Microsoft Azure, potentially strengthening Seagate’s position with major cloud customers. Seagate Simplifies High-Capacity Storage Scaling for AI and Cloud Infrastructure
• Positive Sentiment: Recent operating momentum provides a favorable backdrop: Seagate’s latest reported quarter delivered EPS of $5.71 versus the $5.10 consensus estimate, while revenue rose 48.5% year over year to $3.63 billion. The upcoming earnings report is therefore a key catalyst for confirming whether AI-driven demand and pricing strength are continuing. Seagate Eyes a Q1 Earnings Beat: Is the Stock Worth Buying Now?
• Neutral Sentiment: Investor attention is centered on the earnings release: Seagate is scheduled to report results after the market close, with investors watching revenue, margins, pricing, capacity expansion and forward guidance. Earnings to watch: Seagate reports results
• Negative Sentiment: Production capacity remains a risk: Bank of America said demand for AI-era storage may be outpacing Seagate’s ability to expand production, creating execution and supply constraints even as demand remains strong. Seagate’s booming business comes with an unexpected twist
• Negative Sentiment: One analyst reduced its valuation target: Cantor Fitzgerald lowered its price target from $1,300 to $1,000, although it maintained an “overweight” rating, signaling continued optimism but a more cautious valuation outlook.

Analyst Upgrades and Downgrades

Several brokerages have commented on STX. Cantor Fitzgerald cut their price objective on Seagate Technology from $1,300.00 to $1,000.00 and set an “overweight” rating on the stock in a research report on Monday. Morgan Stanley lifted their target price on Seagate Technology from $1,187.00 to $1,200.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 20th. Rosenblatt Securities set a $1,100.00 price target on shares of Seagate Technology in a report on Monday. Susquehanna raised their target price on shares of Seagate Technology from $775.00 to $875.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 29th. Finally, Citigroup increased their price objective on Seagate Technology from $1,240.00 to $1,300.00 and gave the stock a “buy” rating in a research note on Wednesday, July 29th. Twenty-two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $951.92.

Seagate Technology Price Performance

The firm has a market capitalization of $146.49 billion, a PE ratio of 46.41 and a beta of 2.06. 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 fifty day moving average price of $820.59 and a 200-day moving average price of $812.85.

Seagate Technology (NASDAQ:STX) last issued its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share for the quarter, topping analysts’ consensus estimates of $5.10 by $0.61. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%. The firm had revenue of $3.63 billion during the quarter, compared to analysts’ expectations of $3.50 billion. During the same period in the prior year, the business posted $2.59 EPS. The firm’s quarterly 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. Sell-side analysts forecast that Seagate Technology Holdings PLC will post 35.79 EPS for the current fiscal year.

Seagate Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Investors of record on Thursday, September 24th were paid a dividend of $0.74 per share. This represents a $2.96 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Thursday, September 24th. Seagate Technology’s payout ratio is 21.33%.

Insider Activity at Seagate Technology

In other news, EVP Ban Teh sold 52,730 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $782.08, for a total transaction of $41,239,078.40. Following the completion of the sale, the executive vice president owned 5,810 shares in the company, valued at approximately $4,543,884.80. This represents a 90.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP James Lee sold 547 shares of the stock in a transaction on Friday, October 23rd. The shares were sold at an average price of $642.14, for a total value of $351,250.58. Following the sale, the executive vice president owned 1,037 shares of the company’s stock, valued at approximately $665,899.18. This represents a 34.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 467,506 shares of company stock valued at $379,191,992 over the last three months. Company insiders own 0.51% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Retirement Wealth Solutions LLC boosted its position in shares of Seagate Technology by 70.6% in the 2nd 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. Bridgewater Advisors Inc. increased its holdings in Seagate Technology by 0.9% in the first quarter. Bridgewater Advisors Inc. now owns 1,477 shares of the data storage provider’s stock valued at $579,000 after purchasing an additional 13 shares during the last quarter. Baker Tilly Wealth Management LLC increased its holdings in Seagate Technology by 4.6% in the third quarter. Baker Tilly Wealth Management LLC now owns 319 shares of the data storage provider’s stock valued at $295,000 after purchasing an additional 14 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC increased its holdings in Seagate Technology by 23.1% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider’s stock valued at $31,000 after purchasing an additional 15 shares during the last quarter. Finally, One River Asset Management LLC lifted its stake in Seagate Technology by 50.0% in the third quarter. One River Asset Management LLC now owns 45 shares of the data storage provider’s stock valued at $42,000 after buying an additional 15 shares during the period. 92.87% of the stock is currently owned by hedge funds and other institutional investors.

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.