Zacks Investment Research Downgrades Seagate Technology (STX) to Hold
Seagate Technology (NASDAQ:STX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.
According to Zacks, “Seagate is gaining from the increasing adoption of its Nearline hard-disk drives (HDDs). Around 1 million units were shipped, which was thrice as much as in the previous quarter. Growth in the 12-terabyte helium nearline product line was also encouraging. Seagate also benefited from strong growth in non-HDD segment revenues. We believe that Nearline’s rapid adoption will boost Seagate’s competitive position against Western Digital. Notably, the company has joined the Bain-led consortium for the acquisition of Toshiba’s flash memory assets. This will also improve its competitive position in the flash memory market. However, merger between Western Digital and SanDisk has made capturing market share in the SSD storage technology more challenging. Intense competition in the disk drive market and customer concentration remains major risk for Seagate. Moreover, declining sales in the PC market is affecting the company’s results.”
Several other brokerages also recently weighed in on STX. Cowen restated a “hold” rating and set a $36.00 target price on shares of Seagate Technology in a research note on Friday, October 13th. BidaskClub downgraded Seagate Technology from a “strong-buy” rating to a “buy” rating in a research note on Saturday, December 2nd. Jefferies Group set a $29.00 target price on Seagate Technology and gave the company a “hold” rating in a research note on Sunday, October 15th. Mizuho restated a “hold” rating and set a $36.00 target price on shares of Seagate Technology in a research note on Monday, October 9th. Finally, Barclays raised their target price on Seagate Technology from $29.00 to $32.00 and gave the company an “underweight” rating in a research note on Tuesday, October 24th. Four investment analysts have rated the stock with a sell rating, twenty-three have assigned a hold rating, six have assigned a buy rating and two have given a strong buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $41.50.
Seagate Technology (NASDAQ:STX) traded down $0.08 during trading hours on Tuesday, reaching $42.85. The company’s stock had a trading volume of 3,445,900 shares, compared to its average volume of 3,167,100. The company has a quick ratio of 1.55, a current ratio of 1.96 and a debt-to-equity ratio of 4.03. Seagate Technology has a one year low of $30.60 and a one year high of $50.96. The stock has a market capitalization of $12,310.00, a price-to-earnings ratio of 16.23, a PEG ratio of 0.57 and a beta of 1.68.
Seagate Technology (NASDAQ:STX) last released its quarterly earnings data on Monday, October 23rd. The data storage provider reported $0.96 EPS for the quarter, beating the consensus estimate of $0.86 by $0.10. Seagate Technology had a return on equity of 84.50% and a net margin of 7.41%. The company had revenue of $2.63 billion for the quarter, compared to analyst estimates of $2.54 billion. During the same period last year, the company posted $0.99 earnings per share. The firm’s revenue was down 5.9% compared to the same quarter last year. research analysts predict that Seagate Technology will post 4 EPS for the current fiscal year.
In related news, Director Edward J. Zander sold 15,089 shares of the business’s stock in a transaction that occurred on Wednesday, November 29th. The stock was sold at an average price of $38.79, for a total transaction of $585,302.31. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Philip G. Brace sold 5,403 shares of the business’s stock in a transaction that occurred on Monday, November 6th. The stock was sold at an average price of $36.79, for a total value of $198,776.37. Following the sale, the insider now directly owns 33,069 shares in the company, valued at approximately $1,216,608.51. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 42,481 shares of company stock worth $1,655,011. Corporate insiders own 0.87% of the company’s stock.
A number of institutional investors have recently bought and sold shares of the business. JPMorgan Chase & Co. grew its position in Seagate Technology by 74.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,650,262 shares of the data storage provider’s stock worth $63,947,000 after purchasing an additional 703,822 shares in the last quarter. CIBC World Markets Inc. purchased a new position in Seagate Technology during the 2nd quarter worth approximately $9,699,000. Assetmark Inc. grew its position in Seagate Technology by 43.5% during the 3rd quarter. Assetmark Inc. now owns 145,777 shares of the data storage provider’s stock worth $4,835,000 after purchasing an additional 44,171 shares in the last quarter. Cetera Investment Advisers purchased a new position in Seagate Technology during the 2nd quarter worth approximately $344,000. Finally, Iat Reinsurance Co. LTD. purchased a new position in Seagate Technology during the 3rd quarter worth approximately $12,455,000. Hedge funds and other institutional investors own 91.30% of the company’s stock.
Seagate Technology 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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