Seagate Technology (NASDAQ:STX) Shares Up 3% – Still a Buy?

Shares of Seagate Technology Holdings PLC (NASDAQ:STX) rose 3% during mid-day trading on Wednesday . The stock traded as high as $851.69 and last traded at $846.37. Approximately 2,063,357 shares changed hands during mid-day trading, a decline of 53% from the average session volume of 4,401,495 shares. The stock had previously closed at $821.67.

Seagate Technology News Roundup

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

• Positive Sentiment: Investors are increasingly viewing Seagate as an unexpected AI beneficiary. The company has reported record revenue growth and secured hyperscaler contracts extending through 2027, supporting the outlook for continued demand for high-capacity storage. The key longer-term question is whether Seagate’s technology investments can sustain that growth. Prediction: Seagate Could Be One of AI’s Most Unexpected Winners
• Positive Sentiment: Seagate was highlighted as a momentum stock alongside Western Digital and Dell, reflecting strong recent earnings performance and favorable price trends. Analysts currently give STX a consensus “Moderate Buy” rating and an average price target of $986, with several firms maintaining targets above $1,000.
• Positive Sentiment: The company’s latest quarterly results exceeded expectations: adjusted earnings were $5.71 per share versus a $5.10 consensus estimate, while revenue reached $3.63 billion against expectations of $3.50 billion. Revenue increased 48.5% year over year, and management guided to fiscal first-quarter 2027 earnings of $7.10–$7.50 per share.
• Neutral Sentiment: Seagate declared its regular quarterly dividend of $0.74 per share, or $2.96 annualized. The payout provides modest income but is unlikely to be a major near-term catalyst given the stock’s low dividend yield.
• Negative Sentiment: Several executives sold shares, including the CEO, CFO and multiple executive vice presidents. Most transactions were made under pre-arranged Rule 10b5-1 plans, reducing their value as discretionary bearish signals, but the aggregate selling could still weigh on investor sentiment.
• Negative Sentiment: STX has recently been pressured by broader technology-sector weakness. Its high beta and elevated valuation could amplify volatility if investors reduce exposure to AI and other high-growth technology stocks.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on STX shares. Rosenblatt Securities increased their price objective on shares of Seagate Technology from $1,300.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Wednesday, July 29th. Citigroup lifted their target price on Seagate Technology from $1,240.00 to $1,300.00 and gave the company a “buy” rating in a research report on Wednesday, July 29th. Mizuho upped their target price on Seagate Technology from $875.00 to $1,090.00 and gave the stock an “outperform” rating in a report on Monday, June 8th. Weiss Ratings reissued a “buy (b)” rating on shares of Seagate Technology in a research report on Wednesday, June 24th. Finally, Wedbush raised their price target on Seagate Technology from $825.00 to $1,000.00 and gave the company an “outperform” rating in a research note on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $986.00.

Seagate Technology Trading Up 3.0%

The business’s 50-day moving average price is $884.55 and its 200 day moving average price is $688.66. The company has a market cap of $191.83 billion, a P/E ratio of 60.98 and a beta of 2.06. The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.17 and a current ratio of 1.67.

Seagate Technology (NASDAQ:STX) last issued its earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.10 by $0.61. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. The company 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 firm earned $2.59 EPS. Seagate Technology’s quarterly 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. As a group, analysts expect that Seagate Technology Holdings PLC will post 34.42 earnings per share for the current year.

Seagate Technology Dividend Announcement

The firm also recently declared 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. This represents a $2.96 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Thursday, September 24th. Seagate Technology’s payout ratio is 21.33%.

Insider Transactions at Seagate Technology

In related news, EVP John Christopher Morris sold 3,516 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $849.35, for a total transaction of $2,986,314.60. Following the transaction, the executive vice president directly owned 12,805 shares of the company’s stock, valued at approximately $10,875,926.75. The trade was a 21.54% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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 9,862 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $852.97, for a total value of $8,411,990.14. Following the completion of the sale, the executive vice president owned 5,210 shares in the company, valued at approximately $4,443,973.70. This trade represents a 65.43% 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 ninety days, insiders have sold 193,765 shares of company stock valued at $166,634,842. Company insiders own 0.79% of the company’s stock.

Hedge Funds Weigh In On Seagate Technology

Institutional investors and hedge funds have recently modified their holdings of the stock. Rakuten Securities Inc. boosted its holdings in shares of Seagate Technology by 884.2% during the 2nd quarter. Rakuten Securities Inc. now owns 187 shares of the data storage provider’s stock worth $27,000 after buying an additional 168 shares during the period. Concord Wealth Partners bought a new position in Seagate Technology in the 4th quarter valued at about $28,000. Retirement Wealth Solutions LLC lifted its position in Seagate Technology by 70.6% during the second quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider’s stock worth $28,000 after acquiring an additional 12 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC lifted its position in Seagate Technology by 23.1% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider’s stock worth $31,000 after acquiring an additional 15 shares during the last quarter. Finally, Quarry LP bought a new stake in shares of Seagate Technology during the fourth quarter worth approximately $31,000. 92.87% of the stock is currently owned by institutional investors and hedge funds.

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.