Seagate Technology (NASDAQ:STX) Trading Down 4.7% – Time to Sell?

Seagate Technology Holdings PLC (NASDAQ:STX) shares traded down 4.7% on Friday . The stock traded as low as $761.80 and last traded at $812.76. Approximately 5,897,687 shares traded hands during trading, an increase of 33% from the average session volume of 4,443,026 shares. The stock had previously closed at $852.95.

Key Headlines Impacting Seagate Technology

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

• Positive Sentiment: Analysts raised Seagate’s estimated fair value from $959.48 to $1,115.87, citing stronger hard-drive pricing power, AI-related storage demand, and improving expectations for margins and cash generation. Seagate stock fair value rises after analysts lift storage demand
• Positive Sentiment: Jim Cramer argued that Seagate’s recent earnings were not poor, reinforcing the view that the company remains a beneficiary of AI-related demand. Seagate previously exceeded quarterly earnings and revenue expectations and issued strong forward EPS guidance. Jim Cramer discusses Seagate earnings
• Neutral Sentiment: Seagate remains one of the growth stocks highlighted for August, with analysts pointing to continued AI-driven demand as a potential long-term opportunity. Top-ranked growth stocks for August
• Negative Sentiment: Western Digital’s earnings beat was overshadowed by guidance that failed to meet extremely high investor expectations. Because Seagate and Western Digital compete in hard-disk drives, the disappointment triggered broader selling across memory and storage stocks. Why Western Digital stock is sinking
• Negative Sentiment: Shares across the sector, including Seagate, Western Digital, Sandisk, Micron and SK Hynix, continued to weaken as investors questioned whether AI-related memory demand and pricing can sustain current valuations.
• Negative Sentiment: SK Hynix’s approval of roughly $38 billion for two new memory fabrication plants heightened concerns about future capacity expansion, capital spending and a possible oversupply cycle in 2027. SK Hynix approves new memory fabs

Analyst Ratings Changes

Several research analysts have commented on STX shares. JPMorgan Chase & Co. increased their price objective 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. Melius Research began coverage on Seagate Technology in a report on Monday, June 29th. They issued a “buy” rating and a $1,600.00 target price on the stock. Wells Fargo & Company boosted their target price on Seagate Technology from $1,100.00 to $1,180.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. Rosenblatt Securities increased their price target on Seagate Technology from $1,300.00 to $1,400.00 and gave the company a “buy” rating in a research note on Wednesday, July 29th. Finally, Susquehanna raised their price target on Seagate Technology from $775.00 to $875.00 and gave the company a “neutral” rating in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $986.00.

Seagate Technology Stock Down 4.7%

The business’s 50 day simple moving average is $894.71 and its 200 day simple moving average is $645.87. The company has a current ratio of 1.67, a quick ratio of 1.17 and a debt-to-equity ratio of 1.56. The firm has a market capitalization of $184.21 billion, a PE ratio of 58.56 and a beta of 2.06.

Seagate Technology (NASDAQ:STX) last announced its earnings results 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. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. 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 prior year, the company earned $2.59 EPS. The business’s revenue was up 48.5% compared to the same quarter last year. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. On average, equities research analysts forecast that Seagate Technology Holdings PLC will post 34.42 earnings per share for the current year.

Seagate Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th will be given a dividend of $0.74 per share. The ex-dividend date is Thursday, September 24th. This represents a $2.96 dividend on an annualized basis and a yield of 0.4%. Seagate Technology’s dividend payout ratio is 21.33%.

Insiders Place Their Bets

In other news, EVP John Christopher Morris sold 168 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $817.76, for a total transaction of $137,383.68. Following the transaction, the executive vice president owned 11,920 shares of the company’s stock, valued at approximately $9,747,699.20. The trade was a 1.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Seng Teh sold 989 shares of the stock in a transaction on Friday, June 12th. The shares were sold at an average price of $880.19, for a total value of $870,507.91. Following the sale, the executive vice president owned 4,290 shares in the company, valued at $3,776,015.10. The trade was a 18.73% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 149,638 shares of company stock worth $126,692,095. 0.79% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of STX. Foster & Motley Inc. purchased a new stake in shares of Seagate Technology in the second quarter valued at $772,000. Commerzbank Aktiengesellschaft FI purchased a new position in shares of Seagate Technology during the 2nd quarter worth about $1,129,000. Trust Co. of Vermont purchased a new position in shares of Seagate Technology during the 2nd quarter worth about $54,000. Plato Investment Management Ltd bought a new position in Seagate Technology during the 2nd quarter valued at about $5,571,000. Finally, USA Financial Formulas purchased a new stake in Seagate Technology in the 1st quarter worth about $1,328,000. Institutional investors own 92.87% of the company’s stock.

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.