Seagate Technology (NASDAQ:STX) Shares Down 9.2% – Here’s What Happened

Seagate Technology Holdings PLC (NASDAQ:STX)’s share price was down 9.2% on Tuesday. The company traded as low as $798.62 and last traded at $805.63. Approximately 7,209,376 shares were traded 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 Headlines Impacting Seagate Technology

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

• Positive Sentiment: Seagate reportedly submitted a higher bid for TDK’s magnetic-heads unit, an acquisition that could strengthen its supply chain and support long-term HDD production. However, the bidding contest also raises questions about the price Seagate may have to pay. Seagate reportedly makes higher bid for TDK’s magnetic-heads business
• Positive Sentiment: Morgan Stanley maintained a Buy rating, while other analysts argued that the recent selloff overstates the threat from Toshiba. Seagate’s nearline drives are reportedly supported by customer contracts extending into 2027, offering some visibility amid the supply concerns. Morgan Stanley remains a Buy on Seagate
• Neutral Sentiment: The AI data-center buildout continues to support demand for high-capacity HDDs, but investors are weighing whether Toshiba’s planned capacity increase will arrive quickly enough to create a meaningful supply glut. Seagate’s shares have also posted a substantial one-year gain, increasing sensitivity to negative news.
• Negative Sentiment: Toshiba’s plan to double HDD output has revived fears of excess supply, lower pricing and tougher competition in a market that has recently benefited from tight capacity and AI-driven demand. This is the primary reason STX has decreased and is lagging as investors reduce expectations for sustained margins and growth. Seagate and Western Digital stocks are falling again
• Negative Sentiment: The potential TDK bidding war could require a multibillion-dollar investment, adding execution, integration and valuation risks while Seagate trades at a demanding earnings multiple.

Analyst Ratings Changes

A number of research analysts have recently issued reports on STX shares. JPMorgan Chase & Co. boosted their target price on Seagate Technology from $1,095.00 to $1,240.00 and gave the company an “overweight” rating in a report on Wednesday, July 29th. Susquehanna lifted their price objective on shares of Seagate Technology from $775.00 to $875.00 and gave the company a “neutral” rating in a research report on Wednesday, July 29th. Bank of America boosted their price objective 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. Morgan Stanley upped their price objective 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, July 29th. Finally, Zacks Research cut shares of Seagate Technology from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Twenty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $986.00.

Seagate Technology Price Performance

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 company has a 50-day simple moving average of $856.07 and a 200-day simple moving average of $782.73. The stock has a market cap of $183.19 billion, a PE ratio of 58.04 and a beta of 2.06.

Seagate Technology (NASDAQ:STX) last issued its earnings results on Tuesday, July 28th. The data storage provider reported $5.71 EPS for the quarter, topping the consensus estimate of $5.10 by $0.61. The company had revenue of $3.63 billion for the quarter, compared to analyst estimates of $3.50 billion. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. The business’s revenue was up 48.5% on a year-over-year basis. During the same period in the previous year, the firm earned $2.59 EPS. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. Sell-side analysts anticipate that Seagate Technology Holdings PLC will post 35.7 EPS for the current fiscal year.

Seagate Technology Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th will be issued a $0.74 dividend. 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 (DPR) is 21.33%.

Insider Transactions at Seagate Technology

In related news, CFO Gianluca Romano sold 49,984 shares of the company’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 sale, the chief financial officer owned 70,756 shares in the company, valued at $54,634,952.96. This represents a 41.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP John Morris sold 9,354 shares of Seagate Technology stock in a transaction on Monday, September 21st. The stock was sold at an average price of $877.91, for a total value of $8,211,970.14. Following the transaction, the executive vice president directly owned 22,693 shares of the company’s stock, valued at approximately $19,922,411.63. This represents a 29.19% 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 466,959 shares of company stock worth $378,840,741 over the last quarter. Insiders own 0.51% of the company’s stock.

Institutional Trading of Seagate Technology

Several institutional investors and hedge funds have recently modified their holdings of the business. Retirement Wealth Solutions LLC grew its stake in Seagate Technology by 70.6% during the second quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider’s stock worth $28,000 after buying an additional 12 shares during the last quarter. Bridgewater Advisors Inc. boosted its holdings in shares of Seagate Technology by 0.9% in the 1st quarter. Bridgewater Advisors Inc. now owns 1,477 shares of the data storage provider’s stock worth $579,000 after acquiring an additional 13 shares in the last quarter. Baker Tilly Wealth Management LLC grew its position in Seagate Technology by 4.6% during the 3rd quarter. Baker Tilly Wealth Management LLC now owns 319 shares of the data storage provider’s stock worth $295,000 after acquiring an additional 14 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC increased its holdings in Seagate Technology by 23.1% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 80 shares of the data storage provider’s stock valued at $31,000 after purchasing an additional 15 shares in the last quarter. Finally, Blalock Williams LLC increased its holdings in Seagate Technology by 2.6% during the 2nd quarter. Blalock Williams LLC now owns 636 shares of the data storage provider’s stock valued at $614,000 after purchasing an additional 16 shares in 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 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.