Seagate Technology (NASDAQ:STX) Stock Price Down 9.2% – Should You Sell?

Seagate Technology Holdings PLC (NASDAQ:STX) shares traded down 9.2% during trading on Tuesday . The stock traded as low as $898.68 and last traded at $903.68. Approximately 4,525,961 shares were traded during trading, an increase of 2% from the average session volume of 4,440,186 shares. The stock had previously closed at $994.79.

Seagate Technology News Roundup

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

• Positive Sentiment: AI demand and HAMR technology support the growth outlook. Recent analysis says Seagate’s momentum is being driven by strong demand for data-center storage, advances in heat-assisted magnetic recording (HAMR), disciplined execution, expanding margins and record cash flow. Seagate’s Growth Engine Gains Momentum Across 3 Fronts
• Positive Sentiment: Analysts and commentators remain bullish on the storage cycle. Jim Cramer included STX among memory and storage stocks that may still have significant upside, while other coverage highlights Seagate’s above-average financial growth and positioning to benefit from rising AI infrastructure spending. Jim Cramer says it’s not too late to invest in SNDK, MU, STX, WDC
• Positive Sentiment: Strong recent results have reinforced the investment case. Seagate’s latest quarterly report exceeded earnings and revenue expectations, with revenue up sharply year over year. Coverage also points to the company’s strong cash generation and the potential for sustained earnings growth. Seagate Stock Gains as AI Storage Demand Fuels Record Cash Flow
• Neutral Sentiment: Broader market momentum is supporting storage stocks. Seagate has been moving alongside SanDisk, Micron, Marvell and other AI-related names as investors favor semiconductor and data-center themes. However, the broader market is also focused on Federal Reserve policy and upcoming retail earnings. Stocks That Explain Today’s Market
• Negative Sentiment: Valuation and recent gains raise the risk of a pullback. STX has climbed substantially over the past six months and recently reached a new 52-week high. With a high earnings multiple and a cyclical storage industry vulnerable to supply-demand swings, investors may be locking in gains despite the favorable long-term outlook. 3 Reasons We Love Seagate

Wall Street Analysts Forecast Growth

STX has been the topic of a number of research analyst reports. Wall Street Zen downgraded Seagate Technology from a “strong-buy” rating to a “buy” rating in a research report on Saturday. BNP Paribas Exane lifted their price objective on Seagate Technology from $530.00 to $860.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 29th. The Goldman Sachs Group upped their price objective on Seagate Technology from $385.00 to $700.00 and gave the stock a “buy” rating in a report on Wednesday, April 29th. Susquehanna increased their target price on Seagate Technology from $775.00 to $875.00 and gave the company a “neutral” rating in a research report on Wednesday, July 29th. Finally, Evercore raised their target price on shares of Seagate Technology from $750.00 to $1,000.00 and gave the company an “outperform” rating in a report on Tuesday, May 12th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $986.00.

Seagate Technology Stock Performance

The company has a debt-to-equity ratio of 1.56, a current ratio of 1.67 and a quick ratio of 1.17. The business has a 50-day simple moving average of $893.72 and a 200-day simple moving average of $671.34. The firm has a market capitalization of $204.77 billion, a PE ratio of 65.09 and a beta of 2.06.

Seagate Technology (NASDAQ:STX) last posted its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.10 by $0.61. The business had revenue of $3.63 billion during the quarter, compared to analyst estimates of $3.50 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%.The company’s revenue for the quarter was up 48.5% on a year-over-year basis. During the same period last year, the company earned $2.59 EPS. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. Equities research analysts expect that Seagate Technology Holdings PLC will post 34.42 earnings per share for the current fiscal year.

Seagate Technology Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Thursday, September 24th will be given a $0.74 dividend. The ex-dividend date is Thursday, September 24th. This represents a $2.96 dividend on an annualized basis and a yield of 0.3%. Seagate Technology’s dividend payout ratio (DPR) is currently 21.33%.

Insiders Place Their Bets

In other news, EVP Ban Seng Teh sold 7,361 shares of the stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $920.80, for a total value of $6,778,008.80. Following the sale, the executive vice president owned 2,931 shares of the company’s stock, valued at approximately $2,698,864.80. This represents a 71.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Gianluca Romano sold 14,091 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $811.25, for a total value of $11,431,323.75. Following the sale, the chief financial officer directly owned 21,543 shares of the company’s stock, valued at $17,476,758.75. This represents a 39.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 163,650 shares of company stock valued at $138,616,274 over the last three months. 0.79% of the stock is owned by company insiders.

Hedge Funds Weigh In On Seagate Technology

Several hedge funds have recently bought and sold shares of the business. Jones Financial Companies Lllp bought a new stake in shares of Seagate Technology during the second quarter worth $39,000. Trust Co. of Vermont purchased a new position in Seagate Technology in the 2nd quarter worth about $54,000. Annis Gardner Whiting Capital Advisors LLC increased its stake in Seagate Technology by 23.1% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider’s stock worth $31,000 after buying an additional 15 shares during the period. Salomon & Ludwin LLC lifted its holdings in Seagate Technology by 124.4% during the 4th quarter. Salomon & Ludwin LLC now owns 92 shares of the data storage provider’s stock valued at $27,000 after buying an additional 51 shares in the last quarter. Finally, WealthCollab LLC boosted its position in Seagate Technology by 27.4% in the 1st quarter. WealthCollab LLC now owns 93 shares of the data storage provider’s stock valued at $36,000 after buying an additional 20 shares during the period. Institutional investors own 92.87% of the company’s stock.

Seagate Technology Company Profile

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.