Seagate Technology (NASDAQ:STX) Shares Down 8% – Time to Sell?

Seagate Technology Holdings PLC (NASDAQ:STX) traded down 8% during trading on Friday. The company traded as low as $625.30 and last traded at $644.58. Approximately 5,756,007 shares traded hands during trading, an increase of 29% from the average daily volume of 4,474,896 shares. The stock had previously closed at $700.47.

Seagate Technology News Roundup

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

• Positive Sentiment: Seagate reported fiscal Q1 2027 revenue of approximately $4.23 billion, up 61% year over year, and non-GAAP EPS of $7.68, exceeding the $7.44 consensus estimate. Record free cash flow of roughly $1.5 billion, stronger pricing and robust mass-capacity demand support the company’s AI and cloud-storage growth outlook. Seagate Q1 Earnings Ride Record Cash Flow and AI Demand
• Positive Sentiment: Analysts continue to highlight Seagate’s exposure to expanding data-center capacity needs. Some commentary favors STX over Western Digital because of its higher return on equity, lower forward valuation and record cash generation. Western Digital vs. Seagate
• Positive Sentiment: Seagate announced a dividend increase, adding to its appeal for income-oriented investors during market volatility and ongoing inflation and interest-rate uncertainty. Stocks That Declared Dividend Hikes
• Positive Sentiment: Wedbush maintained an “Outperform” rating, while Morgan Stanley reportedly reduced its target but still sees substantial potential upside, indicating that some analysts view the pullback as an opportunity. Wedbush Outperform Rating
• Neutral Sentiment: The earnings response has been muted because elevated expectations appear to have been largely priced into STX after its substantial prior run. Investors are weighing excellent results against valuation, future growth assumptions and the sustainability of AI-driven demand. Post-Earnings Pullback
• Negative Sentiment: Seagate is declining alongside Sandisk, Western Digital and Micron in a broader semiconductor and memory-stock selloff, suggesting sector-wide profit-taking is outweighing the company’s earnings beat. Storage and Memory Stocks Sell Off
• Negative Sentiment: TD Cowen, Morgan Stanley, Citigroup, Susquehanna and Wells Fargo lowered their price targets or forecasts. Summit Insights also downgraded the stock, creating near-term pressure even though several firms remain constructive. TD Cowen Cuts Seagate Price Target

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on STX. Bank of America lifted their price objective on Seagate Technology from $1,150.00 to $1,200.00 and gave the stock a “buy” rating in a report on Wednesday, October 21st. Barclays boosted their price objective on Seagate Technology from $1,000.00 to $1,250.00 and gave the company an “overweight” rating in a research note on Thursday, July 30th. Robert W. Baird set a $1,350.00 price objective on shares of Seagate Technology in a report on Wednesday. Wedbush reiterated an “outperform” rating and set a $1,000.00 target price on shares of Seagate Technology in a research report on Wednesday. Finally, Sanford C. Bernstein reiterated an “outperform” rating and set a $1,350.00 target price on shares of Seagate Technology in a research report on Wednesday, July 29th. Twenty-two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, Seagate Technology presently has an average rating of “Moderate Buy” and an average target price of $1,000.88.

Seagate Technology Trading Down 8.0%

The stock has a market cap of $146.57 billion, a PE ratio of 33.85 and a beta of 2.06. The firm has a 50-day simple moving average of $799.09 and a 200-day simple moving average of $688.41. The company has a quick ratio of 1.17, a current ratio of 1.82 and a debt-to-equity ratio of 0.68.

Seagate Technology (NASDAQ:STX) last posted its quarterly earnings results on Tuesday, October 27th. The data storage provider reported $7.68 EPS for the quarter, topping analysts’ consensus estimates of $7.44 by $0.24. The firm 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 252.47% and a net margin of 31.86%. The business’s revenue for the quarter was up 61.0% on a year-over-year basis. During the same period last year, the company earned $2.61 earnings per share. Equities analysts forecast that Seagate Technology Holdings PLC will post 37.44 earnings per share for the current year.

Seagate Technology Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Wednesday, December 23rd will be paid a $0.76 dividend. The ex-dividend date is Wednesday, December 23rd. This represents a $3.04 annualized dividend and a yield of 0.5%. This is an increase from Seagate Technology’s previous quarterly dividend of $0.74. Seagate Technology’s dividend payout ratio is 15.55%.

Insider Buying and Selling

In other news, CEO William Mosley sold 97,889 shares of the company’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $772.14, for a total transaction of $75,584,012.46. Following the sale, the chief executive officer directly owned 378,108 shares in the company, valued at $291,952,311.12. This represents a 20.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP John Morris sold 15,466 shares of the stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $772.15, for a total transaction of $11,942,071.90. Following the completion of the sale, the executive vice president directly owned 31,132 shares in the company, valued at approximately $24,038,573.80. The trade was a 33.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 466,812 shares of company stock worth $378,583,042 in the last 90 days. 0.51% of the stock is owned by company insiders.

Hedge Funds Weigh In On Seagate Technology

Several hedge funds have recently bought and sold shares of STX. Wellington Management Group LLP lifted its stake in shares of Seagate Technology by 2,655.9% in the 2nd 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 acquiring an additional 2,326,538 shares during the last quarter. National Pension Service boosted its holdings in Seagate Technology by 0.8% during the 2nd quarter. National Pension Service now owns 834,705 shares of the data storage provider’s stock valued at $805,490,000 after acquiring an additional 6,944 shares during the period. Janus Henderson Group PLC boosted its holdings in Seagate Technology by 3,872.1% during the 1st quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider’s stock valued at $378,985,000 after acquiring an additional 943,170 shares during the period. Amundi boosted its holdings in Seagate Technology by 32.2% during the 1st quarter. Amundi now owns 965,565 shares of the data storage provider’s stock valued at $378,267,000 after acquiring an additional 235,359 shares during the period. Finally, Swedbank AB grew its position in Seagate Technology by 67.6% during the 1st quarter. Swedbank AB now owns 709,160 shares of the data storage provider’s stock worth $277,821,000 after acquiring an additional 285,949 shares during the last quarter. Hedge funds and other institutional investors own 92.87% of the company’s stock.

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.