Seagate Technology (NASDAQ:STX) Stock Price Up 4.5% on Earnings Beat

Seagate Technology Holdings PLC (NASDAQ:STX) shares rose 4.5% during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $698.94 and last traded at $697.97. 10,724,736 shares were traded during trading, an increase of 140% from the average daily volume of 4,460,732 shares. The stock had previously closed at $667.85.

The data storage provider reported $7.68 EPS for the quarter, beating analysts’ consensus estimates of $7.45 by $0.23. The business had revenue of $4.23 billion during the quarter, compared to analyst estimates of $4.15 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%. Seagate Technology’s revenue was up 61.0% on a year-over-year basis. During the same period in the prior year, the company posted $2.61 earnings per share.

Seagate Technology Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Wednesday, December 23rd will be paid a dividend of $0.76 per share. 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 0.4%. The ex-dividend date is Wednesday, December 23rd. Seagate Technology’s dividend payout ratio is presently 21.33%.

More Seagate Technology News

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

• Positive Sentiment: Seagate reported fiscal Q1 revenue of $4.23 billion, up 61% year over year, and non-GAAP earnings of $7.68 per share, exceeding consensus estimates of $4.15 billion and $7.45 per share. Data-center revenue rose 63%, while record cash flow and favorable pricing boosted profitability. Seagate Technology Reports Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: Management projected roughly $4.8 billion in December-quarter revenue and $9.20 in non-GAAP EPS. Strong AI and cloud-storage demand, higher prices, HAMR adoption and supply commitments extending through 2028–2030 support the longer-term growth outlook. Data-center customers represented 90% of shipped capacity. Seagate Q1 Earnings Call Highlights Strong Demand and HAMR Expansion
• Positive Sentiment: Seagate raised its quarterly dividend 2.7% to $0.76 per share. However, the approximately 0.4% yield indicates that investors are valuing STX primarily as a high-growth AI-storage company rather than an income stock. Seagate Just Raised Its Dividend
• Neutral Sentiment: Analyst opinion remains divided. Wells Fargo, TD Cowen and Morgan Stanley lowered price targets but retained bullish ratings, while Wedbush maintained a $1,000 target. Summit Insights downgraded the stock to “hold,” and Susquehanna cut its target to $765 with a neutral rating.
• Negative Sentiment: The earnings beat did not clear an elevated bar after STX’s substantial rally. Investors are concerned that exabyte shipment growth and margin expansion could slow, while the stock’s premium valuation leaves less room for execution disappointments. Profit-taking after the results added to the pressure. Seagate Q1 Earnings Beat, Stock Plunges

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on STX shares. Citigroup dropped their price objective on shares of Seagate Technology from $1,300.00 to $1,050.00 and set a “buy” rating for the company in a research note on Wednesday. Cantor Fitzgerald decreased their target price on shares of Seagate Technology from $1,300.00 to $1,000.00 and set an “overweight” rating on the stock in a research report on Monday. TD Cowen lowered their target price on shares of Seagate Technology from $1,000.00 to $900.00 and set a “buy” rating on the stock in a research note on Wednesday. Susquehanna dropped their price target on shares of Seagate Technology from $925.00 to $765.00 and set a “neutral” rating for the company in a research report on Wednesday. Finally, Morgan Stanley cut their price target 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. 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 company presently has a consensus rating of “Moderate Buy” and an average price target of $971.64.

Insider Activity at Seagate Technology

In related news, EVP John Morris sold 9,354 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $877.91, for a total transaction of $8,211,970.14. Following the sale, the executive vice president directly owned 22,693 shares in the company, valued at $19,922,411.63. This represents a 29.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ban Teh sold 52,730 shares of the firm’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $782.08, for a total value of $41,239,078.40. Following the sale, the executive vice president directly owned 5,810 shares of the company’s stock, valued at $4,543,884.80. This represents a 90.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 467,506 shares of company stock valued at $379,191,992. Insiders own 0.51% of the company’s stock.

Hedge Funds Weigh In On Seagate Technology

A number of institutional investors and hedge funds have recently bought and sold shares of STX. Parcion Private Wealth LLC increased its stake in shares of Seagate Technology by 19.3% in the third quarter. Parcion Private Wealth LLC now owns 1,387 shares of the data storage provider’s stock valued at $1,279,000 after buying an additional 224 shares in the last quarter. Soltis Investment Advisors LLC lifted its position in Seagate Technology by 7.2% during the 3rd quarter. Soltis Investment Advisors LLC now owns 2,194 shares of the data storage provider’s stock worth $2,024,000 after buying an additional 147 shares in the last quarter. Founders Financial Securities LLC lifted its position in Seagate Technology by 32.7% during the 3rd quarter. Founders Financial Securities LLC now owns 1,165 shares of the data storage provider’s stock worth $1,075,000 after buying an additional 287 shares in the last quarter. Creative Capital Management Investments LLC lifted its position in Seagate Technology by 104.5% during the 3rd quarter. Creative Capital Management Investments LLC now owns 45 shares of the data storage provider’s stock worth $42,000 after buying an additional 23 shares in the last quarter. Finally, China Universal Asset Management Co. Ltd. grew its holdings in Seagate Technology by 63.5% during the 3rd quarter. China Universal Asset Management Co. Ltd. now owns 11,037 shares of the data storage provider’s stock worth $10,090,000 after acquiring an additional 4,285 shares during the last quarter. Institutional investors and hedge funds own 92.87% of the company’s stock.

Seagate Technology Trading Up 4.5%

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 stock has a market cap of $158.71 billion, a P/E ratio of 50.29 and a beta of 2.06. The business’s fifty day simple moving average is $809.95 and its 200 day simple moving average is $682.75.

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.