Seagate Technology (NASDAQ:STX) Shares Up 11.1% After Strong Earnings

Seagate Technology Holdings PLC (NASDAQ:STX)’s share price traded up 11.1% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $697.00 and last traded at $643.30. 10,806,099 shares traded hands during mid-day trading, an increase of 161% from the average session volume of 4,135,762 shares. The stock had previously closed at $579.03.

The data storage provider reported $4.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.47 by $0.63. Seagate Technology had a negative return on equity of 936.38% and a net margin of 19.59%.The business had revenue of $3.11 billion during the quarter, compared to analysts’ expectations of $2.94 billion. During the same period in the previous year, the business posted $1.90 earnings per share. The firm’s revenue for the quarter was up 44.1% compared to the same quarter last year. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS.

Seagate Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 7th. Investors of record on Wednesday, June 24th will be issued a $0.74 dividend. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Wednesday, June 24th. Seagate Technology’s payout ratio is currently 33.48%.

Key Seagate Technology News

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

• Positive Sentiment: Q3 results beat and upbeat guidance: Seagate reported $4.10 EPS and $3.11B revenue, far above expectations, cited sustained AI-related demand, record margins and near-$1B free cash flow, and guided Q4 revenue and EPS above consensus — a core reason shares are higher today. Business Wire: Q3 Results
• Positive Sentiment: Widespread analyst upgrades and huge target lifts: Dozens of firms raised targets (examples: Rosenblatt to $1,000, JPMorgan to $775, Morgan Stanley to $767, Barclays to $750, TD Cowen to $850, BNP to $860), signaling a fresh re-rating of Seagate on durable AI/data-center demand. The volume of bullish revises amplified the rally. 247wallst: Rosenblatt $1,000 PT
• Positive Sentiment: Market/sector momentum around AI storage: Multiple outlets tie Seagate’s beat to a broader memory/storage rally as investors position for AI infrastructure spending, lifting peers as well. Reuters: Storage stocks jump
• Neutral Sentiment: Dividend maintained/announced: Seagate declared a quarterly dividend (record June 24 / pay July 7) — a modest yield that supports income investors but is unlikely to be the primary driver of today’s move.
• Neutral Sentiment: Sector commentary and investor enthusiasm: Coverage in Investopedia and other outlets highlights the AI/memory theme that’s lifting many names; useful context but not company-specific news. Investopedia: Memory stocks
• Negative Sentiment: Some analyst targets still below the rally price: A few shops (e.g., UBS, Susquehanna) have targets that sit below the current intraday level, creating potential resistance or profit-taking points for traders. Benzinga: UBS / Susquehanna notes

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Sanford C. Bernstein lifted their price target on Seagate Technology from $500.00 to $620.00 and gave the company an “outperform” rating in a report on Thursday, April 9th. Jefferies Financial Group reaffirmed a “hold” rating on shares of Seagate Technology in a report on Wednesday, February 4th. Mizuho lifted their price target on Seagate Technology from $565.00 to $700.00 and gave the company an “outperform” rating in a report on Wednesday. Morgan Stanley lifted their price objective on Seagate Technology from $582.00 to $767.00 and gave the stock an “overweight” rating in a research report on Wednesday. Finally, Barclays lifted their price objective on Seagate Technology from $625.00 to $750.00 and gave the stock an “overweight” rating in a research report on Wednesday. Twenty research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $680.79.

Insiders Place Their Bets

In other news, CEO William D. Mosley sold 24,584 shares of Seagate Technology stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $406.77, for a total transaction of $10,000,033.68. Following the transaction, the chief executive officer owned 375,591 shares in the company, valued at $152,779,151.07. The trade was a 6.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Ban Seng Teh sold 20,195 shares of the business’s stock in a transaction that occurred on Thursday, January 29th. The shares were sold at an average price of $442.29, for a total value of $8,932,046.55. Following the completion of the sale, the executive vice president owned 3,092 shares in the company, valued at $1,367,560.68. The trade was a 86.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 111,550 shares of company stock worth $46,476,441. Company insiders own 0.79% of the company’s stock.

Institutional Investors Weigh In On Seagate Technology

Institutional investors have recently bought and sold shares of the company. Cornerstone Wealth Group LLC raised its stake in shares of Seagate Technology by 0.5% during the 1st quarter. Cornerstone Wealth Group LLC now owns 3,542 shares of the data storage provider’s stock worth $1,388,000 after purchasing an additional 19 shares in the last quarter. Gateway Investment Advisers LLC raised its stake in shares of Seagate Technology by 1.8% during the 4th quarter. Gateway Investment Advisers LLC now owns 1,399 shares of the data storage provider’s stock worth $385,000 after purchasing an additional 25 shares in the last quarter. Trajan Wealth LLC raised its stake in shares of Seagate Technology by 1.9% during the 4th quarter. Trajan Wealth LLC now owns 1,325 shares of the data storage provider’s stock worth $365,000 after purchasing an additional 25 shares in the last quarter. TSG Advice Partners LLC raised its stake in shares of Seagate Technology by 1.9% during the 1st quarter. TSG Advice Partners LLC now owns 1,448 shares of the data storage provider’s stock worth $567,000 after purchasing an additional 27 shares in the last quarter. Finally, Fortis Capital Management LLC raised its stake in shares of Seagate Technology by 1.1% during the 4th quarter. Fortis Capital Management LLC now owns 2,557 shares of the data storage provider’s stock worth $704,000 after purchasing an additional 27 shares in the last quarter. Institutional investors own 92.87% of the company’s stock.

Seagate Technology Trading Up 11.1%

The company has a market cap of $140.29 billion, a P/E ratio of 72.77, a PEG ratio of 0.99 and a beta of 1.61. The company has a current ratio of 1.12, a quick ratio of 0.72 and a debt-to-equity ratio of 7.63. The business has a 50 day moving average price of $444.55 and a 200-day moving average price of $351.81.

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.