Seagate Technology (NASDAQ:STX) Trading Up 2.3% on Earnings Beat

Seagate Technology Holdings PLC (NASDAQ:STX) shares were up 2.3% on Wednesday following a better than expected earnings announcement. The company traded as high as $814.97 and last traded at $764.43. Approximately 9,188,299 shares were traded during trading, an increase of 110% from the average session volume of 4,384,904 shares. The stock had previously closed at $747.30.

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 return on equity of 1,005.65% and a net margin of 21.60%.The business had revenue of $3.63 billion during the quarter, compared to the consensus estimate of $3.50 billion. During the same period in the prior year, the business posted $2.59 earnings per share. Seagate Technology’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.

Seagate Technology Dividend Announcement

The company also recently disclosed 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 dividend on an annualized basis and a yield of 0.4%. Seagate Technology’s dividend payout ratio is currently 28.08%.

Key Headlines Impacting Seagate Technology

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

• Positive Sentiment: Quarterly earnings beat expectations. Seagate reported non-GAAP EPS of $5.71, above the $5.10 consensus, while revenue rose 48.5% year over year to $3.63 billion, exceeding the $3.50 billion estimate. Net income increased to $1.29 billion from $488 million a year earlier. Seagate fiscal fourth-quarter results
• Positive Sentiment: AI-related demand is supporting the outlook. Management cited durable demand from data-center customers for high-capacity nearline drives and its Mozaic and HAMR technologies, suggesting AI infrastructure growth is translating into storage demand. Seagate forecasts upbeat quarter
• Positive Sentiment: Fiscal first-quarter guidance was well above Wall Street forecasts. Seagate projected EPS of $7.10–$7.50 and revenue of $4.0–$4.2 billion, compared with consensus estimates of $5.63 EPS and approximately $3.7 billion in revenue. The company also reported record fiscal 2026 profitability and $3.1 billion of free cash flow.
• Positive Sentiment: Analysts raised targets following the report. JPMorgan lifted its target to $1,240 and Wells Fargo to $1,180, both maintaining overweight ratings. Citigroup, Rosenblatt, TD Cowen and Wedbush also raised targets, with buy or outperform ratings; Cantor Fitzgerald reaffirmed overweight with a $1,300 target. Analyst price-target changes
• Neutral Sentiment: Seagate declared a quarterly dividend of $0.74 per share, payable October 7 to shareholders of record September 24. The dividend yield is approximately 0.4%, making it a modest income component rather than a major share-price catalyst.
• Negative Sentiment: Valuation and elevated expectations remain risks. The stock has already more than doubled over the past year, and some coverage noted that investors had priced in substantial AI-related optimism. A high P/E and recent volatility could limit further gains if storage demand or margins disappoint.

Analysts Set New Price Targets

Several research firms have recently weighed in on STX. Morgan Stanley lifted their target price on shares of Seagate Technology from $1,035.00 to $1,187.00 and gave the stock an “overweight” rating in a research report on Wednesday. JPMorgan Chase & Co. upped their price target on shares of Seagate Technology from $1,095.00 to $1,240.00 and gave the company an “overweight” rating in a research report on Wednesday. Evercore raised their price objective on shares of Seagate Technology from $750.00 to $1,000.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 12th. TD Cowen lifted their price objective on shares of Seagate Technology from $850.00 to $1,000.00 and gave the stock a “buy” rating in a research report on Wednesday. Finally, Barclays boosted their target price on shares of Seagate Technology from $750.00 to $1,000.00 and gave the company an “overweight” rating in a research note on Wednesday, May 27th. 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, Seagate Technology currently has a consensus rating of “Moderate Buy” and an average price target of $970.00.

Insiders Place Their Bets

In other news, CFO Gianluca Romano sold 22,488 shares of the company’s stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $774.22, for a total value of $17,410,659.36. Following the transaction, the chief financial officer owned 42,847 shares in the company, valued at $33,173,004.34. This represents a 34.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William D. Mosley sold 30,000 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $751.29, for a total transaction of $22,538,700.00. Following the completion of the sale, the chief executive officer directly owned 339,591 shares of the company’s stock, valued at $255,131,322.39. This trade represents a 8.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 151,069 shares of company stock worth $126,191,753. Insiders own 0.79% of the company’s stock.

Institutional Investors Weigh In On Seagate Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Walker Asset Management LLC purchased a new position in shares of Seagate Technology during the 2nd quarter valued at $338,000. Ballast Inc. acquired a new position in shares of Seagate Technology in the second quarter worth $222,000. Regent Peak Wealth Advisors LLC purchased a new stake in shares of Seagate Technology during the second quarter worth $354,000. Taylor & Morgan Wealth Management LLC raised its holdings in shares of Seagate Technology by 8.8% during the second quarter. Taylor & Morgan Wealth Management LLC now owns 603 shares of the data storage provider’s stock worth $582,000 after acquiring an additional 49 shares in the last quarter. Finally, Nolet Wealth Management LLC acquired a new stake in Seagate Technology during the second quarter valued at $293,000. Hedge funds and other institutional investors own 92.87% of the company’s stock.

Seagate Technology Trading Up 2.3%

The business has a 50-day moving average of $894.95 and a 200-day moving average of $618.98. The company has a quick ratio of 0.85, a current ratio of 1.33 and a debt-to-equity ratio of 3.16. The stock has a market cap of $171.41 billion, a price-to-earnings ratio of 72.53 and a beta of 2.04.

About Seagate Technology

Seagate Technology (NASDAQ: STX) is a global data storage company that designs, manufactures and sells a broad range of storage products and systems. The firm’s product portfolio includes traditional hard disk drives (HDDs), solid-state drives (SSDs), hybrid storage devices and integrated storage systems aimed at enterprise, cloud, OEM and consumer markets. Seagate also provides services that support its hardware offerings, including data recovery and storage management solutions.

Seagate’s products are used in a wide array of applications, from large-scale data centers and cloud infrastructure to desktop and portable consumer devices.