Seagate Technology (NASDAQ:STX) Stock Falls 4.5% – Time to Sell?

Seagate Technology Holdings PLC (NASDAQ:STX)’s share price traded down 4.5% on Wednesday. The stock traded as low as $711.63 and last traded at $713.54. Approximately 4,182,125 shares were traded during mid-day trading, a decline of 5% from the average session volume of 4,386,279 shares. The stock had previously closed at $747.20.

Trending Headlines about Seagate Technology

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

• Positive Sentiment: Seagate remains positioned to benefit from artificial-intelligence infrastructure spending and growing data-center storage demand. Its HAMR technology supports higher-capacity hard drives, including 44TB products currently available and a longer-term roadmap toward 100TB drives, potentially lowering customers’ storage and operating costs. Seagate’s Improving Earnings Support a Cautious Upside
• Positive Sentiment: Recent operating results provide fundamental support: fiscal 2026 sales increased 34% to approximately $12.2 billion, adjusted operating margins reached 36.5%, and free cash flow grew substantially. The latest reported quarter also exceeded consensus estimates for earnings and revenue, with revenue up 48.5% year over year. Seagate’s Improving Earnings Support a Cautious Upside
• Neutral Sentiment: The company is scheduled to report fiscal first-quarter 2027 results after the market close on October 27. That report will be an important catalyst for testing whether strong AI-related demand and management’s guidance can justify the stock’s elevated valuation. Seagate to Report Fiscal First Quarter 2027 Results
• Negative Sentiment: Shares of Seagate and Western Digital fell alongside broader memory stocks after reports of design breakthroughs in China raised concerns about future competition, reduced supply constraints, and potentially lower pricing power across the storage industry. Seagate and Western Digital Shares Plummet
• Negative Sentiment: Investors are also questioning valuation after Seagate’s stock gained roughly 766% since July 2021 and recently declined sharply despite analysts largely maintaining their earnings estimates. The resulting gap between the share price and consensus price targets creates both perceived upside and concern that expectations may be too optimistic. Rapid Growth, High Volatility, and Near 50% Upside

Wall Street Analysts Forecast Growth

STX has been the topic of several recent research reports. Sanford C. Bernstein reiterated an “outperform” rating and issued a $1,350.00 price objective on shares of Seagate Technology in a research report on Wednesday, July 29th. Morgan Stanley raised their price objective on shares of Seagate Technology from $1,035.00 to $1,187.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. Bank of America increased their target price on Seagate Technology from $1,000.00 to $1,150.00 and gave the company a “buy” rating in a report on Wednesday, July 1st. Zacks Research downgraded Seagate Technology from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Finally, Weiss Ratings cut Seagate Technology from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, October 2nd. Twenty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $986.00.

Seagate Technology Stock Performance

The company’s fifty day simple moving average is $851.58 and its two-hundred day simple moving average is $798.06. The company has a market capitalization of $162.25 billion, a price-to-earnings ratio of 51.41 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 announced its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share for the quarter, beating the consensus estimate 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 during the quarter, compared to analyst estimates of $3.50 billion. During the same period in the previous year, the company earned $2.59 earnings per share. Seagate Technology’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. Equities research analysts predict that Seagate Technology Holdings PLC will post 35.70 earnings per share for the current fiscal year.

Seagate Technology Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th were given a $0.74 dividend. The ex-dividend date of this dividend was Thursday, September 24th. This represents a $2.96 annualized dividend and a yield of 0.4%. Seagate Technology’s dividend payout ratio (DPR) is currently 21.33%.

Insider Activity

In other Seagate Technology news, CEO William Mosley sold 97,889 shares of the business’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $772.14, for a total transaction of $75,584,012.46. Following the completion of the transaction, the chief executive officer directly owned 378,108 shares of the company’s stock, valued at $291,952,311.12. The trade was a 20.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP John Morris sold 15,466 shares of Seagate Technology stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $772.15, for a total value of $11,942,071.90. Following the sale, the executive vice president directly owned 31,132 shares in the company, valued at approximately $24,038,573.80. This trade represents a 33.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 466,959 shares of company stock worth $378,840,741. 0.51% of the stock is owned by insiders.

Institutional Inflows and Outflows

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

About Seagate Technology

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.