Seagate Technology PLC (STX) Upgraded to Buy at Zacks Investment Research
Seagate Technology PLC (NASDAQ:STX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Wednesday. The firm presently has a $43.00 target price on the data storage provider’s stock. Zacks Investment Research’s price objective suggests a potential upside of 12.45% from the stock’s previous close.
According to Zacks, “Seagate is the second-largest manufacturer of HDDs in the U.S. Estimates have been going up ahead of the company's Q1 earnings release. Seagate's recent decision to cut the global workforce will drive its bottom-line performance in the long run. We believe that it is a step in the right direction as the shrinking of the PC business necessitates measures to align costs accordingly. Going forward, the company should benefit from the strength in its hybrid drives. Also, it is focusing on the enterprise side, where it could acquire higher-margin businesses. Synergies from acquisitions and product innovations are other growth drivers.”
Other research analysts have also issued research reports about the company. Brean Capital reissued a “buy” rating on shares of Seagate Technology PLC in a research note on Wednesday, July 6th. Needham & Company LLC reissued a “buy” rating and set a $31.00 price target on shares of Seagate Technology PLC in a research note on Thursday, June 30th. BTIG Research reissued a “buy” rating and set a $30.00 price target on shares of Seagate Technology PLC in a research note on Tuesday, July 12th. Jefferies Group reissued a “buy” rating and set a $26.00 price target on shares of Seagate Technology PLC in a research note on Tuesday, July 12th. Finally, Craig Hallum increased their price target on Seagate Technology PLC from $37.00 to $50.00 and gave the stock a “buy” rating in a research note on Wednesday, September 7th. Two equities research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating, six have issued a buy rating and two have issued a strong buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus target price of $34.72.
Seagate Technology PLC (NASDAQ:STX) traded up 1.059% on Wednesday, reaching $38.645. The company had a trading volume of 1,885,767 shares. The stock has a market capitalization of $11.60 billion, a P/E ratio of 47.128 and a beta of 2.50. Seagate Technology PLC has a 12 month low of $18.42 and a 12 month high of $49.50. The firm has a 50-day moving average of $35.18 and a 200-day moving average of $28.86.
Seagate Technology PLC (NASDAQ:STX) last issued its quarterly earnings results on Tuesday, August 2nd. The data storage provider reported $0.69 earnings per share for the quarter, topping analysts’ consensus estimates of $0.60 by $0.09. Seagate Technology PLC had a return on equity of 38.98% and a net margin of 2.22%. The company had revenue of $2.65 billion for the quarter, compared to analyst estimates of $2.32 billion. During the same quarter in the prior year, the company posted $0.77 EPS. The business’s revenue for the quarter was down 9.3% compared to the same quarter last year. On average, equities research analysts expect that Seagate Technology PLC will post $3.03 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Saturday, October 15th. Investors of record on Wednesday, September 21st will be issued a dividend of $0.63 per share. The ex-dividend date of this dividend is Monday, September 19th. This represents a $2.52 annualized dividend and a yield of 6.59%. Seagate Technology PLC’s payout ratio is 307.32%.
In other Seagate Technology PLC news, SVP Mark Re sold 12,750 shares of Seagate Technology PLC stock in a transaction that occurred on Wednesday, August 24th. The shares were sold at an average price of $31.84, for a total value of $405,960.00. Following the transaction, the senior vice president now owns 65,520 shares in the company, valued at $2,086,156.80. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Frank Biondi sold 1,251 shares of Seagate Technology PLC stock in a transaction that occurred on Tuesday, August 9th. The stock was sold at an average price of $32.45, for a total transaction of $40,594.95. Following the completion of the transaction, the director now owns 6,433 shares in the company, valued at approximately $208,750.85. The disclosure for this sale can be found here. Corporate insiders own 1.50% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Cowen Prime Services LLC acquired a new position in Seagate Technology PLC during the second quarter valued at about $105,000. Glenmede Trust Co. NA boosted its position in Seagate Technology PLC by 30.2% in the second quarter. Glenmede Trust Co. NA now owns 4,650 shares of the data storage provider’s stock valued at $113,000 after buying an additional 1,079 shares during the last quarter. Advisory Services Network LLC boosted its position in Seagate Technology PLC by 30.2% in the second quarter. Advisory Services Network LLC now owns 5,603 shares of the data storage provider’s stock valued at $136,000 after buying an additional 1,300 shares during the last quarter. Tredje AP fonden purchased a new position in Seagate Technology PLC during the second quarter valued at $146,000. Finally, Los Angeles Capital Management & Equity Research Inc. purchased a new position in Seagate Technology PLC during the first quarter valued at $214,000. Hedge funds and other institutional investors own 83.86% of the company’s stock.
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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