Seagate Technology (NASDAQ:STX) Stock Falls 9.2% – Here’s What Happened

Seagate Technology Holdings PLC (NASDAQ:STX) fell 9.2% on Tuesday. The stock traded as low as $798.62 and last traded at $805.63. Approximately 7,209,376 shares changed hands during trading, an increase of 65% from the average session volume of 4,374,441 shares. The stock had previously closed at $887.09.

Key Seagate Technology News

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

• Positive Sentiment: AI workloads continue to generate substantial demand for economical, high-capacity storage, supporting the investment case for HDD manufacturers. Seagate’s recent quarterly results also exceeded expectations, with revenue up 48.5% year over year and earnings above consensus. Seagate vs. Western Digital: Which HDD Stock Has More Room to Run?
• Positive Sentiment: Seagate paid a shareholder dividend, reinforcing its income-return profile after a major long-term share-price appreciation. However, the dividend is not the primary driver of the current move. HP, Merck, and Seagate Just Paid Their Shareholders
• Neutral Sentiment: Investors are awaiting Seagate’s next quarterly report and management commentary for evidence that AI-related demand, pricing and production plans remain on track. Analysts currently expect strong full-year earnings, while the company has provided quarterly earnings guidance of $7.10 to $7.50 per share. What to Expect From Seagate Technology’s Next Quarterly Earnings Report
• Negative Sentiment: Toshiba’s plan to double HDD production capacity has raised fears of increased supply, tougher competition and lower pricing. The announcement triggered a sharp sell-off in Seagate and threatens the scarcity premium behind the recent HDD rally. Toshiba Just Issued a Major Warning to Seagate Stock
• Negative Sentiment: Weak preliminary results from Samsung are cooling one of the market’s hottest AI-related memory trades, contributing to broader semiconductor and storage-sector risk aversion. The Memory Trade Cools After Samsung’s Preliminary Results Disappoint
• Negative Sentiment: Chief Executive William Mosley’s sale of approximately $17.4 million in shares shortly before Toshiba’s announcement has added investor scrutiny, although the transaction alone does not establish a change in company fundamentals. Seagate’s CEO Sold $17.4 Million the Day Before the Toshiba Drop

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on STX. Bank of America raised their target price on Seagate Technology from $1,000.00 to $1,150.00 and gave the stock a “buy” rating in a research report on Wednesday, July 1st. JPMorgan Chase & Co. increased their price objective on shares of Seagate Technology from $1,095.00 to $1,240.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. 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 report on Wednesday, July 29th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $1,300.00 target price on shares of Seagate Technology in a report on Wednesday, July 29th. Finally, Barclays increased their price target on shares of Seagate Technology from $1,000.00 to $1,250.00 and gave the stock an “overweight” rating in a research report on Thursday, July 30th. Twenty-two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $986.00.

Seagate Technology Trading Down 3.9%

The stock’s 50-day simple moving average is $858.09 and its two-hundred day simple moving average is $788.17. The company has a debt-to-equity ratio of 1.56, a current ratio of 1.67 and a quick ratio of 1.17. The firm has a market capitalization of $176.54 billion, a P/E ratio of 55.85 and a beta of 2.06.

Seagate Technology (NASDAQ:STX) last announced its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 EPS for the quarter, beating the consensus estimate of $5.10 by $0.61. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. The firm had revenue of $3.63 billion for the quarter, compared to the consensus estimate of $3.50 billion. During the same period last year, the firm earned $2.59 EPS. The company’s 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 expect that Seagate Technology Holdings PLC will post 35.7 EPS for the current year.

Seagate Technology Dividend Announcement

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

Insiders Place Their Bets

In related news, CFO Gianluca Romano sold 49,984 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $772.16, for a total value of $38,595,645.44. Following the transaction, the chief financial officer directly owned 70,756 shares of the company’s stock, valued at approximately $54,634,952.96. The trade was a 41.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, 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 company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $782.08, for a total value of $41,239,078.40. Following the completion of the transaction, the executive vice president owned 5,810 shares of the company’s stock, valued at $4,543,884.80. The trade was a 90.08% decrease in their ownership of the stock. 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 466,959 shares of company stock worth $378,840,741 over the last quarter. Company insiders own 0.51% of the company’s stock.

Hedge Funds Weigh In On Seagate Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership boosted its position in shares of Seagate Technology by 8.3% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,193,063 shares of the data storage provider’s stock valued at $879,338,000 after acquiring an additional 243,551 shares during the last quarter. Wellington Management Group LLP raised its stake in Seagate Technology by 2,655.9% during the second quarter. Wellington Management Group LLP now owns 2,414,136 shares of the data storage provider’s stock valued at $2,329,641,000 after purchasing an additional 2,326,538 shares in the last quarter. Deutsche Bank AG lifted its position in Seagate Technology by 102.0% during the fourth quarter. Deutsche Bank AG now owns 1,599,962 shares of the data storage provider’s stock valued at $440,614,000 after purchasing an additional 807,962 shares during the last quarter. Janus Henderson Group PLC lifted its position in Seagate Technology by 3,872.1% during the first quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider’s stock valued at $378,985,000 after purchasing an additional 943,170 shares during the last quarter. Finally, Amundi grew its stake in shares of Seagate Technology by 32.2% in the 1st quarter. Amundi now owns 965,565 shares of the data storage provider’s stock worth $378,267,000 after buying an additional 235,359 shares in the last quarter. 92.87% of the stock is owned by institutional investors.

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.