Seagate Technology (NASDAQ:STX) Stock Falls 3.2% – Should You Sell?

Shares of Seagate Technology Holdings PLC (NASDAQ:STX) dropped 3.2% during mid-day trading on Thursday. The stock traded as low as $652.29 and last traded at $690.81. 5,858,335 shares traded hands during mid-day trading, an increase of 33% from the average daily volume of 4,393,910 shares. The stock had previously closed at $713.54.

More Seagate Technology News

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

• Positive Sentiment: Seagate’s 44TB Mozaic 4 hard drives could support further gross-margin expansion. Higher storage density, improved cost efficiency and strong demand from cloud providers may increase profitability as customers deploy more capacity. Can Seagate’s 44TB Mozaic 4 Drives Lift Gross Margins Further?
• Positive Sentiment: Analysts see Seagate as a beneficiary of AI-related data growth. HAMR technology and higher-capacity drives, including the 44TB product and a planned 100TB drive by 2032, could reduce the number of drives and operating costs required by data centers. Recent coverage cited fiscal 2026 sales growth, stronger operating margins and substantially higher free cash flow. Seagate’s Improving Earnings Support a Cautious Upside
• Positive Sentiment: Seagate is scheduled to report fiscal first-quarter 2027 results after the market closes on October 27. Investors will focus on whether demand, pricing and the company’s margin outlook validate the bullish storage-demand thesis. Seagate to Report Fiscal First Quarter 2027 Results
• Neutral Sentiment: Several reports argue that data creation and AI workloads could provide Seagate with a long growth runway, despite the stock’s recent retreat and elevated valuation. This creates potential upside but leaves the shares sensitive to execution and expectations.
• Negative Sentiment: Reports of technological breakthroughs in China and concerns about competition, memory oversupply and supply-chain conditions have triggered a sell-off in storage and semiconductor stocks, weighing on STX investor sentiment. Seagate and Western Digital Shares Plummet

Analysts Set New Price Targets

Several analysts recently commented on STX shares. Wells Fargo & Company lifted their price objective on Seagate Technology from $1,100.00 to $1,180.00 and gave the stock an “overweight” rating in a report on Wednesday, July 29th. Zacks Research downgraded Seagate Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. Barclays increased their target price on Seagate Technology from $1,000.00 to $1,250.00 and gave the company an “overweight” rating in a report on Thursday, July 30th. Wedbush raised their price objective on shares of Seagate Technology from $825.00 to $1,000.00 and gave the stock an “outperform” rating in a report on Wednesday, July 29th. Finally, JPMorgan Chase & Co. upped their target price on shares of Seagate Technology from $1,095.00 to $1,240.00 and gave the company an “overweight” rating in a report on Wednesday, July 29th. Twenty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, Seagate Technology presently has a consensus rating of “Moderate Buy” and a consensus price target of $986.00.

Seagate Technology Price Performance

The firm has a 50 day moving average price of $849.09 and a 200 day moving average price of $800.42. The company has a quick ratio of 1.17, a current ratio of 1.67 and a debt-to-equity ratio of 1.56. The stock has a market cap of $157.08 billion, a P/E ratio of 49.77 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 for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $3.50 billion. During the same period in the previous year, the firm earned $2.59 EPS. The business’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. On average, analysts forecast that Seagate Technology Holdings PLC will post 35.70 EPS for the current fiscal year.

Seagate Technology Announces Dividend

The company also recently announced 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. The ex-dividend date was Thursday, September 24th. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.4%. Seagate Technology’s payout ratio is 21.33%.

Insider Activity

In other Seagate Technology 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 value 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 filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 49,984 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $772.16, for a total value of $38,595,645.44. Following the completion of the sale, the chief financial officer owned 70,756 shares of the company’s stock, valued at $54,634,952.96. The trade was a 41.40% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 466,959 shares of company stock worth $378,840,741. 0.51% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Seagate Technology

Hedge funds and other institutional investors have recently modified their holdings of the stock. NewEdge Advisors LLC grew its position in shares of Seagate Technology by 85.9% during the first quarter. NewEdge Advisors LLC now owns 22,046 shares of the data storage provider’s stock valued at $8,637,000 after purchasing an additional 10,190 shares in the last quarter. UNICOM Systems Inc. boosted its stake in Seagate Technology by 18.2% during the second quarter. UNICOM Systems Inc. now owns 43,500 shares of the data storage provider’s stock valued at $41,978,000 after buying an additional 6,700 shares during the last quarter. USA Financial Formulas bought a new stake in Seagate Technology in the 1st quarter worth approximately $1,328,000. Financial Insights Inc. bought a new stake in Seagate Technology in the 2nd quarter worth approximately $706,000. Finally, Silverleafe Capital Partners LLC purchased a new stake in shares of Seagate Technology during the 3rd quarter worth approximately $820,000. Institutional investors own 92.87% of the company’s stock.

Seagate Technology Company Profile

Seagate Technology Holdings plc is a data storage technology company that designs, manufactures and supplies solutions for storing, managing and accessing digital information. Its product portfolio is centered on hard disk drives (HDDs), including high-capacity drives used in cloud data centers, enterprise environments, surveillance systems, network-attached storage and personal computing.

The company also offers solid-state drives (SSDs), storage systems, external storage products and related services.