Seagate Technology (NASDAQ:STX) Shares Climb 2.5% – Still a Buy?

Seagate Technology Holdings PLC (NASDAQ:STX)’s stock price rose 2.5% during trading on Thursday. The company traded as high as $946.36 and last traded at $945.57. 2,463,377 shares changed hands during trading, a decline of 43% from the average daily volume of 4,301,820 shares. The stock had previously closed at $922.34.

Seagate Technology News Roundup

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

• Positive Sentiment: AI data-center growth continues to support demand for high-capacity hard drives, and Seagate has benefited from record margins and capacity that was reportedly close to fully allocated. The company remains positioned to supply the rapidly expanding need to store AI-generated data. AI Needs Massive Storage. Seagate Is Ready
• Positive Sentiment: Seagate’s recent operating momentum has been substantial: quarterly revenue and earnings exceeded expectations, with revenue rising strongly year over year. That performance demonstrates the benefit of tight industry supply and robust AI-related demand.
• Neutral Sentiment: Seagate’s stock had already risen more than 270% over the past year, prompting debate over whether its valuation fully reflects the AI-storage opportunity. Investors are weighing continued demand growth against the risk that the current shortage-driven earnings surge is temporary. Seagate Is Selling Into a Shortage. What Happens When It Ends?
• Negative Sentiment: Toshiba reportedly plans to double HDD production capacity for drives used in AI data centers during fiscal 2027, while other reports described an ambition to substantially increase market share. The potential influx of competing supply threatens to reduce scarcity, limit future price increases, and intensify competition for Seagate and Western Digital. Seagate Stock and Western Digital Tumble as AI Shortage Shows Signs of Easing

Analyst Ratings Changes

STX has been the subject of a number of research analyst reports. Cantor Fitzgerald reiterated an “overweight” rating and issued a $1,300.00 price target on shares of Seagate Technology in a report on Wednesday, July 29th. Weiss Ratings restated a “buy (b)” rating on shares of Seagate Technology in a research note on Monday, September 21st. TD Cowen boosted their target price on shares of Seagate Technology from $850.00 to $1,000.00 and gave the company a “buy” rating in a research note on Wednesday, July 29th. Wall Street Zen raised shares of Seagate Technology from a “buy” rating to a “strong-buy” rating in a report on Saturday, September 26th. Finally, Citigroup raised their price target on shares of Seagate Technology from $1,240.00 to $1,300.00 and gave the stock a “buy” rating in a research report on Wednesday, July 29th. Twenty-two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $986.00.

Seagate Technology Stock Performance

The company has a 50-day moving average price of $854.66 and a 200-day moving average price of $776.79. The company has a quick ratio of 1.17, a current ratio of 1.67 and a debt-to-equity ratio of 1.56. The firm has a market capitalization of $193.05 billion, a price-to-earnings ratio of 61.17 and a beta of 2.06.

Seagate Technology (NASDAQ:STX) last released its quarterly earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, topping 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 company had revenue of $3.63 billion during the quarter, compared to analysts’ expectations of $3.50 billion. During the same quarter in the prior year, the business posted $2.59 earnings per share. The company’s revenue for the quarter 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, equities research analysts forecast that Seagate Technology Holdings PLC will post 35.7 earnings per share for the current year.

Seagate Technology Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th will be paid a dividend of $0.74 per share. The ex-dividend date of this dividend is Thursday, September 24th. This represents a $2.96 annualized dividend and a yield of 0.3%. Seagate Technology’s dividend payout ratio (DPR) is presently 21.33%.

Insider Activity at Seagate Technology

In other news, EVP John Morris sold 15,466 shares of the 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 completion of the transaction, the executive vice president directly owned 31,132 shares in the company, valued at $24,038,573.80. This trade represents a 33.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Ban Teh sold 52,730 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $782.08, for a total transaction of $41,239,078.40. Following the transaction, the executive vice president owned 5,810 shares in the company, valued at $4,543,884.80. This represents a 90.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 466,959 shares of company stock worth $378,840,741 in the last 90 days. Corporate insiders own 0.51% of the company’s stock.

Institutional Investors Weigh In On Seagate Technology

A number of institutional investors have recently added to or reduced their stakes in the company. Silverleafe Capital Partners LLC bought a new position in Seagate Technology during the third quarter valued at about $820,000. QRG Capital Management Inc. lifted its holdings in Seagate Technology by 15.5% in the 2nd quarter. QRG Capital Management Inc. now owns 21,081 shares of the data storage provider’s stock valued at $20,343,000 after acquiring an additional 2,826 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its holdings in Seagate Technology by 163.4% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 3,940 shares of the data storage provider’s stock valued at $3,802,000 after acquiring an additional 2,444 shares during the last quarter. Silicon Valley Capital Partners boosted its position in shares of Seagate Technology by 1,988.5% during the 2nd quarter. Silicon Valley Capital Partners now owns 543 shares of the data storage provider’s stock valued at $524,000 after purchasing an additional 517 shares in the last quarter. Finally, Altar Rock LLC bought a new position in shares of Seagate Technology during the 2nd quarter valued at about $260,000. 92.87% of the stock is currently owned by institutional investors and hedge funds.

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.