Seagate Technology (NASDAQ:STX) Cut to “Hold” at Summit Insights

Summit Insights cut shares of Seagate Technology (NASDAQ:STX) from a buy rating to a hold rating in a report published on Wednesday, Marketbeat.com reports.

Several other equities research analysts also recently commented on STX. Sanford C. Bernstein reiterated an “outperform” rating and set a $1,350.00 target price on shares of Seagate Technology in a report on Wednesday, July 29th. Rosenblatt Securities reduced their target price on shares of Seagate Technology from $1,400.00 to $1,100.00 and set a “buy” rating on the stock in a research report on Monday. Wells Fargo & Company reduced their target price on shares of Seagate Technology from $1,180.00 to $865.00 and set an “overweight” rating on the stock in a research report on Friday, October 16th. Morgan Stanley decreased their target price on shares of Seagate Technology from $1,200.00 to $1,148.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, Weiss Ratings raised shares of Seagate Technology from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, October 16th. Twenty-two equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $1,000.88.

Seagate Technology Trading Down 8.0%

NASDAQ:STX opened at $644.58 on Wednesday. The business’s 50-day moving average is $799.09 and its two-hundred day moving average is $688.41. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.82 and a quick ratio of 1.17. Seagate Technology has a 12 month low of $228.61 and a 12 month high of $1,145.00. The firm has a market capitalization of $146.57 billion, a PE ratio of 35.67 and a beta of 2.06.

Seagate Technology (NASDAQ:STX) last issued its quarterly earnings data on Tuesday, October 27th. The data storage provider reported $7.68 EPS for the quarter, topping analysts’ consensus estimates of $7.44 by $0.24. Seagate Technology had a return on equity of 252.47% and a net margin of 31.86%. The company had revenue of $4.23 billion for the quarter, compared to analysts’ expectations of $4.15 billion. During the same quarter in the previous year, the firm posted $2.61 earnings per share. The firm’s quarterly revenue was up 61.0% on a year-over-year basis. Research analysts predict that Seagate Technology will post 36.37 earnings per share for the current fiscal year.

Seagate Technology Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Wednesday, December 23rd will be issued a $0.76 dividend. This is an increase from Seagate Technology’s previous quarterly dividend of $0.74. This represents a $3.04 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Wednesday, December 23rd. Seagate Technology’s dividend payout ratio (DPR) is currently 15.55%.

Insider Activity

In other Seagate Technology news, EVP James Lee sold 547 shares of the company’s stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $642.14, for a total value of $351,250.58. Following the transaction, the executive vice president directly owned 1,037 shares of the company’s stock, valued at $665,899.18. This represents a 34.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Gianluca Romano sold 49,984 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $772.16, for a total value of $38,595,645.44. Following the completion of the transaction, the chief financial officer directly owned 70,756 shares in the company, valued at approximately $54,634,952.96. The trade was a 41.40% decrease in their ownership of the stock. 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. Insiders have sold 466,812 shares of company stock worth $378,583,042 over the last quarter. Corporate insiders own 0.51% of the company’s stock.

Institutional Trading of Seagate Technology

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP increased its position in shares of Seagate Technology by 2,655.9% in the 2nd quarter. Wellington Management Group LLP now owns 2,414,136 shares of the data storage provider’s stock worth $2,329,641,000 after purchasing an additional 2,326,538 shares during the last quarter. National Pension Service raised its stake in shares of Seagate Technology by 0.8% in the 2nd quarter. National Pension Service now owns 834,705 shares of the data storage provider’s stock valued at $805,490,000 after purchasing an additional 6,944 shares in the last quarter. Janus Henderson Group PLC raised its stake in shares of Seagate Technology by 3,872.1% in the 1st quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider’s stock valued at $378,985,000 after purchasing an additional 943,170 shares in the last quarter. Amundi raised its stake in shares of Seagate Technology by 32.2% in the 1st quarter. Amundi now owns 965,565 shares of the data storage provider’s stock valued at $378,267,000 after purchasing an additional 235,359 shares in the last quarter. Finally, Swedbank AB lifted its position in shares of Seagate Technology by 67.6% during the first quarter. Swedbank AB now owns 709,160 shares of the data storage provider’s stock worth $277,821,000 after purchasing an additional 285,949 shares during the last quarter. Institutional investors own 92.87% of the company’s stock.

Seagate Technology News Roundup

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

• Positive Sentiment: Seagate reported fiscal Q1 2027 revenue of approximately $4.23 billion, up 61% year over year, and non-GAAP EPS of $7.68, exceeding the $7.44 consensus estimate. Record free cash flow of roughly $1.5 billion, stronger pricing and robust mass-capacity demand support the company’s AI and cloud-storage growth outlook. Seagate Q1 Earnings Ride Record Cash Flow and AI Demand
• Positive Sentiment: Analysts continue to highlight Seagate’s exposure to expanding data-center capacity needs. Some commentary favors STX over Western Digital because of its higher return on equity, lower forward valuation and record cash generation. Western Digital vs. Seagate
• Positive Sentiment: Seagate announced a dividend increase, adding to its appeal for income-oriented investors during market volatility and ongoing inflation and interest-rate uncertainty. Stocks That Declared Dividend Hikes
• Positive Sentiment: Wedbush maintained an “Outperform” rating, while Morgan Stanley reportedly reduced its target but still sees substantial potential upside, indicating that some analysts view the pullback as an opportunity. Wedbush Outperform Rating
• Neutral Sentiment: The earnings response has been muted because elevated expectations appear to have been largely priced into STX after its substantial prior run. Investors are weighing excellent results against valuation, future growth assumptions and the sustainability of AI-driven demand. Post-Earnings Pullback
• Negative Sentiment: Seagate is declining alongside Sandisk, Western Digital and Micron in a broader semiconductor and memory-stock selloff, suggesting sector-wide profit-taking is outweighing the company’s earnings beat. Storage and Memory Stocks Sell Off
• Negative Sentiment: TD Cowen, Morgan Stanley, Citigroup, Susquehanna and Wells Fargo lowered their price targets or forecasts. Summit Insights also downgraded the stock, creating near-term pressure even though several firms remain constructive. TD Cowen Cuts Seagate Price Target

Seagate Technology Company Profile

Seagate Technology Holdings plc (NASDAQ: STX) is a data storage company that develops and manufactures mass-capacity storage products and solutions. Its portfolio is centered on hard disk drives (HDDs) used in cloud data centers, enterprise systems, network-attached storage, video and imaging applications, and personal computers.

The company also provides storage-related services and solutions designed to help organizations store, manage, protect, and access large volumes of digital information.