Seagate Technology (NASDAQ:STX) Trading 7.9% Higher – Here’s What Happened
by Teresa Graham · The Cerbat GemShares of Seagate Technology Holdings PLC (NASDAQ:STX – Get Free Report) rose 7.9% during trading on Thursday . The company traded as high as $811.51 and last traded at $810.46. Approximately 3,466,043 shares changed hands during trading, a decline of 18% from the average daily volume of 4,210,723 shares. The stock had previously closed at $751.07.
Key Stories Impacting Seagate Technology
Here are the key news stories impacting Seagate Technology this week:
- Positive Sentiment: Seagate and Western Digital rallied after Nvidia’s earnings reinforced strong AI infrastructure spending, which supports demand for storage hardware used in data centers. Seagate Stock, Western Digital Bounce Back After Nvidia Results
- Positive Sentiment: Seagate announced exchanges for $185.908 million of exchangeable notes, a move that may help simplify its capital structure and manage debt-related obligations. Seagate Announces Exchanges with Holders of $185.908 Million Principal Amount of Exchangeable Notes
- Positive Sentiment: Seagate has also benefited from bullish investor positioning, including reports that billionaire Stanley Druckenmiller added AI memory names such as Seagate to his portfolio. Billionaire Stanley Druckenmiller Dumped Every Share of Alphabet. He Bought AI Memory Stocks Up 581% to 3,467% Instead
- Neutral Sentiment: CEO William D. Mosley sold 30,000 shares under a pre-arranged Rule 10b5-1 plan. While insider sales can draw attention, the planned nature of the trade makes it less concerning than an open-market sale. SEC Form 4 filing
- Negative Sentiment: Jim Cramer called Seagate “too pricey,” highlighting valuation concerns at nearly 50 times next year’s earnings estimates, which could limit upside if investors rotate away from expensive chip and memory names. Jim Cramer on Seagate: “Too Pricey”
- Negative Sentiment: Comments from Seagate management that building new factories is not practical near term raised supply-capacity questions and briefly pressured memory-stock sentiment, as investors weighed whether the AI demand boom could face future constraints. Seagate Capacity Shift Raises AI Supply Questions And Valuation Opportunity
Analyst Upgrades and Downgrades
Several analysts have issued reports on the stock. Evercore raised their price objective on shares of Seagate Technology from $750.00 to $1,000.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 12th. Rosenblatt Securities increased their price target on Seagate Technology from $500.00 to $1,000.00 and gave the stock a “buy” rating in a report on Wednesday, April 29th. KeyCorp set a $500.00 price target on Seagate Technology in a report on Wednesday, January 28th. BNP Paribas Exane increased their price target on Seagate Technology from $530.00 to $860.00 and gave the stock an “outperform” rating in a report on Wednesday, April 29th. Finally, Robert W. Baird upped their price objective on Seagate Technology from $270.00 to $505.00 and gave the company an “outperform” rating in a research report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $733.71.
Seagate Technology Stock Up 7.9%
The company’s 50 day moving average price is $548.86 and its two-hundred day moving average price is $404.73. The company has a quick ratio of 0.85, a current ratio of 1.33 and a debt-to-equity ratio of 3.16. The stock has a market cap of $181.73 billion, a P/E ratio of 76.89 and a beta of 1.98.
Seagate Technology (NASDAQ:STX – Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The data storage provider reported $4.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.51 by $0.59. Seagate Technology had a return on equity of 1,005.65% and a net margin of 21.60%.The company had revenue of $3.11 billion for the quarter, compared to analysts’ expectations of $2.96 billion. During the same quarter in the prior year, the firm earned $1.90 earnings per share. Seagate Technology’s revenue 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. As a group, research analysts expect that Seagate Technology Holdings PLC will post 14.1 earnings per share for the current year.
Seagate Technology Announces Dividend
The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Wednesday, June 24th will be issued a $0.74 dividend. This represents a $2.96 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Wednesday, June 24th. Seagate Technology’s dividend payout ratio is currently 28.08%.
Insider Transactions at Seagate Technology
In other Seagate Technology news, EVP Ban Seng Teh sold 8,003 shares of the firm’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $817.28, for a total transaction of $6,540,691.84. Following the transaction, the executive vice president owned 3,691 shares of the company’s stock, valued at approximately $3,016,580.48. This trade represents a 68.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP James Ci Lee sold 697 shares of the firm’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $741.17, for a total transaction of $516,595.49. Following the transaction, the executive vice president directly owned 324 shares in the company, valued at $240,139.08. This trade represents a 68.27% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 148,283 shares of company stock valued at $88,528,318 over the last three months. 0.79% of the stock is currently owned by corporate insiders.
Hedge Funds Weigh In On Seagate Technology
A number of hedge funds and other institutional investors have recently modified their holdings of STX. Integrated Wealth Concepts LLC boosted its stake in shares of Seagate Technology by 168.0% during the first quarter. Integrated Wealth Concepts LLC now owns 7,177 shares of the data storage provider’s stock valued at $610,000 after purchasing an additional 4,499 shares in the last quarter. Sivia Capital Partners LLC purchased a new stake in Seagate Technology during the second quarter worth $262,000. Cerity Partners LLC lifted its holdings in Seagate Technology by 25.8% during the second quarter. Cerity Partners LLC now owns 36,682 shares of the data storage provider’s stock worth $5,294,000 after buying an additional 7,517 shares during the period. Sei Investments Co. raised its position in shares of Seagate Technology by 64.8% in the 2nd quarter. Sei Investments Co. now owns 8,543 shares of the data storage provider’s stock worth $1,233,000 after acquiring an additional 3,358 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its position in shares of Seagate Technology by 0.4% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 127,887 shares of the data storage provider’s stock worth $18,458,000 after acquiring an additional 462 shares in the last quarter. 92.87% of the stock is currently owned by institutional investors.
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.