Seagate Technology (NASDAQ:STX) Stock Price Down 4.5% – Here’s Why

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

Key Stories Impacting Seagate Technology

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

• Positive Sentiment: Wells Fargo says the selloff is overdone: Although the firm reduced its price targets for Seagate and Western Digital because of competition, AI-spending uncertainty and questions about industry pricing, it remains bullish on both companies. Wells Fargo views the weakness as a potential opportunity. Seagate and Western Digital Stocks Have Tanked on Toshiba Fears. Wells Fargo Is Still Bullish.
• Positive Sentiment: Mozaic 4 technology could improve profitability: Seagate’s 44-terabyte Mozaic 4 drives are designed to serve growing cloud-storage demand while increasing areal density and lowering costs. The technology could support additional gross-margin expansion if hyperscaler demand remains strong. Can Seagate’s 44TB Mozaic 4 Drives Lift Gross Margins Further?
• Positive Sentiment: Long-term storage demand remains a potential growth driver: Analysts point to expanding data volumes, cloud infrastructure investment and AI-generated data as reasons Seagate may have a multiyear demand runway, despite recent sector volatility. Seagate Could Have a Long Runway as Data Storage Demand Explodes

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on STX shares. Wall Street Zen raised shares of Seagate Technology from a “buy” rating to a “strong-buy” rating in a report on Saturday, September 26th. Sanford C. Bernstein reissued an “outperform” rating and issued a $1,350.00 target price on shares of Seagate Technology in a research report on Wednesday, July 29th. Bank of America upped their target price on shares of Seagate Technology from $1,000.00 to $1,150.00 and gave the company a “buy” rating in a research note on Wednesday, July 1st. Fox Advisors downgraded shares of Seagate Technology from an “overweight” rating to an “equal weight” rating in a report on Monday, June 22nd. Finally, Argus raised their price target on shares of Seagate Technology from $750.00 to $900.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Twenty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $973.40.

Seagate Technology Stock Down 6.7%

The stock has a market capitalization of $146.57 billion, a P/E ratio of 46.42 and a beta of 2.06. The company’s 50-day moving average price is $845.85 and its 200 day moving average price is $802.60. 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 results 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. The business had revenue of $3.63 billion during the quarter, compared to analyst estimates of $3.50 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%. Seagate Technology’s revenue for the quarter was up 48.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.59 EPS. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. As a group, equities analysts expect that Seagate Technology Holdings PLC will post 35.70 earnings per share for the current year.

Seagate Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th were paid a $0.74 dividend. This represents a $2.96 annualized dividend and a yield of 0.5%. The ex-dividend date was Thursday, September 24th. Seagate Technology’s dividend payout ratio is presently 21.33%.

Insider Activity at Seagate Technology

In other Seagate Technology news, CEO William Mosley sold 11,002 shares of the business’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $935.60, for a total value of $10,293,471.20. Following the sale, the chief executive officer owned 362,108 shares in the company, valued at $338,788,244.80. The trade was a 2.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through 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 stock in a transaction dated 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 transaction, the executive vice president directly owned 22,693 shares of the company’s stock, valued at $19,922,411.63. This trade represents a 29.19% 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. In the last 90 days, insiders sold 466,959 shares of company stock valued at $378,840,741. Corporate insiders own 0.51% of the company’s stock.

Hedge Funds Weigh In On Seagate Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Opal Wealth Advisors LLC increased its stake in Seagate Technology by 17.0% in the 3rd quarter. Opal Wealth Advisors LLC now owns 1,031 shares of the data storage provider’s stock worth $951,000 after acquiring an additional 150 shares during the last quarter. Rise Advisors LLC bought a new position in shares of Seagate Technology during the 3rd quarter valued at approximately $223,000. Aspiriant LLC boosted its position in shares of Seagate Technology by 13.0% during the 3rd quarter. Aspiriant LLC now owns 677 shares of the data storage provider’s stock valued at $624,000 after acquiring an additional 78 shares during the last quarter. Perryman Financial Advisory Inc. AD grew its holdings in shares of Seagate Technology by 79.0% in the third quarter. Perryman Financial Advisory Inc. AD now owns 931 shares of the data storage provider’s stock valued at $859,000 after purchasing an additional 411 shares in the last quarter. Finally, Pension & Wealth Management Advisors Inc. purchased a new position in shares of Seagate Technology in the third quarter valued at $993,000. 92.87% of the stock is owned by institutional investors.

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.