Seagate Technology (NASDAQ:STX) Stock Falls 4.1% – Should You Sell?

Shares of Seagate Technology Holdings PLC (NASDAQ:STX) were down 4.1% during mid-day trading on Thursday. The company traded as low as $770.06 and last traded at $774.83. 4,819,477 shares changed hands during trading, an increase of 10% from the average daily volume of 4,377,359 shares. The stock had previously closed at $807.57.

Key Headlines Impacting Seagate Technology

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

• Positive Sentiment: Seagate’s AI-driven growth remains the primary bullish argument. Demand from data-center and AI infrastructure buildouts is supporting expectations for strong hard-drive sales, though investors are questioning whether that growth justifies the stock’s elevated valuation. Can Seagate’s AI-Driven Growth Justify Its Sky-High Expectations?
• Positive Sentiment: Commentary from Jim Cramer highlighted Seagate and Western Digital’s restrained capacity additions amid surging AI storage demand, suggesting disciplined supply could support pricing and margins. Seagate and Western Digital Capacity Strategy
• Neutral Sentiment: Seagate generated $3.1 billion in fiscal 2026 free cash flow, comfortably covering its $0.74 quarterly dividend. However, the annualized $2.96 payout represents only a modest yield at the recent share price, limiting the dividend’s appeal as an income catalyst. Seagate’s Dividend Has a Large Cash Cushion
• Neutral Sentiment: Investors are looking ahead to Seagate’s next quarterly earnings report for evidence that AI demand, revenue growth, and management guidance can support the stock’s high earnings expectations. What to Expect From Seagate Technology’s Next Quarterly Earnings Report
• Negative Sentiment: Reports involving a TDK unit bid and Toshiba’s expansion of AI hard-drive capacity raised concerns about additional competition and future industry supply, contributing to a sharp sell-off in STX. Seagate Down After TDK and Toshiba News
• Negative Sentiment: Disappointing preliminary results from Samsung cooled the broader memory and AI trade, creating negative sentiment for storage-related stocks even though Seagate’s business is focused on hard drives. The Memory Trade Cools After Samsung’s Results

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on STX. TD Cowen upped their price target on shares of Seagate Technology from $850.00 to $1,000.00 and gave the stock a “buy” rating in a report on Wednesday, July 29th. Melius Research started coverage on Seagate Technology in a research report on Monday, June 29th. They issued a “buy” rating and a $1,600.00 target price for the company. Wells Fargo & Company lifted their price target on Seagate Technology from $1,100.00 to $1,180.00 and gave the company an “overweight” rating in a research note on Wednesday, July 29th. Wedbush upped their price objective 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. Finally, Zacks Research lowered shares of Seagate Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. Twenty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $986.00.

Seagate Technology Price Performance

The company has a fifty day simple moving average of $855.09 and a 200 day simple moving average of $790.67. The stock has a market capitalization of $178.05 billion, a price-to-earnings ratio of 56.41 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 issued its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 the consensus estimate of $3.50 billion. During the same period last year, the company earned $2.59 earnings per share. The firm’s 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. Equities research analysts forecast that Seagate Technology Holdings PLC will post 35.70 EPS for the current fiscal year.

Seagate Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th were paid a $0.74 dividend. This represents a $2.96 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 24th. Seagate Technology’s dividend payout ratio is currently 21.33%.

Insider Activity

In related news, CEO William D. Mosley sold 11,002 shares of Seagate Technology stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $935.60, for a total transaction of $10,293,471.20. Following the completion of the transaction, the chief executive officer owned 362,108 shares of the company’s stock, valued at $338,788,244.80. This trade represents a 2.95% decrease in their ownership of the stock. The sale was disclosed in a 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 John Morris sold 9,354 shares of the company’s stock in a transaction on Monday, September 21st. The shares were 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 trade represents a 29.19% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 466,959 shares of company stock valued at $378,840,741. 0.51% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Seagate Technology

Several large investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP grew its position in shares of Seagate Technology by 2,655.9% during the 2nd quarter. Wellington Management Group LLP now owns 2,414,136 shares of the data storage provider’s stock worth $2,329,641,000 after buying an additional 2,326,538 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in Seagate Technology by 8.3% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,193,063 shares of the data storage provider’s stock worth $879,338,000 after acquiring an additional 243,551 shares in the last quarter. National Pension Service grew its holdings in Seagate Technology by 0.8% in the second quarter. National Pension Service now owns 834,705 shares of the data storage provider’s stock worth $805,490,000 after purchasing an additional 6,944 shares during the period. Janus Henderson Group PLC increased its stake in Seagate Technology by 3,872.1% in 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 in the last quarter. Finally, Amundi increased its stake in Seagate Technology by 32.2% in the first quarter. Amundi now owns 965,565 shares of the data storage provider’s stock valued at $378,267,000 after purchasing an additional 235,359 shares in the last quarter. Institutional investors and hedge funds own 92.87% of the company’s stock.

Seagate Technology Company Profile

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.