Seagate Technology (NASDAQ:STX) Trading Up 2.2% – Should You Buy?

Seagate Technology Holdings PLC (NASDAQ:STX)’s share price shot up 2.2% on Monday . The stock traded as high as $1,013.99 and last traded at $994.79. 4,282,891 shares were traded during mid-day trading, a decline of 4% from the average session volume of 4,441,734 shares. The stock had previously closed at $973.44.

Key Stories Impacting Seagate Technology

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

• Positive Sentiment: Seagate’s growth outlook is supported by sustained demand for data-center storage tied to artificial intelligence, advances in heat-assisted magnetic recording (HAMR), and disciplined execution. These factors could support revenue growth, margins and free cash flow. Seagate’s Growth Engine Gains Momentum Across 3 Fronts
• Positive Sentiment: Recent results reinforce the bullish case: Seagate exceeded quarterly earnings and revenue expectations, while revenue increased sharply year over year. Its outlook for the next quarter also points to continued earnings momentum.
• Positive Sentiment: Jim Cramer included Seagate among memory and storage stocks that may still have room to rise, arguing that AI-related demand is creating an unusually attractive opportunity despite the sector’s historically cyclical boom-and-bust pattern. Jim Cramer says it’s not too late to invest in SNDK, MU, STX, WDC
• Positive Sentiment: Other commentary identifies Seagate’s above-average financial growth, record cash-flow potential and favorable positioning for AI infrastructure as reasons growth investors should not overlook STX. 3 Reasons Why Growth Investors Shouldn’t Overlook Seagate
• Neutral Sentiment: Seagate’s shares have risen dramatically over the past six months and recently reached a new 52-week high, prompting investors to consider whether the strong operating performance is already reflected in the stock. 3 Reasons We Love Seagate
• Negative Sentiment: Profit-taking and valuation concerns may be contributing to the weaker session. STX carries a high earnings multiple and substantial volatility after its sharp advance, leaving the stock vulnerable when investors rotate among AI, memory and storage names or reassess the sector’s cyclicality.

Analyst Ratings Changes

A number of research firms recently issued reports on STX. Argus boosted their price objective on Seagate Technology from $750.00 to $900.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Morgan Stanley raised their target price on Seagate Technology from $1,035.00 to $1,187.00 and gave the company an “overweight” rating in a research note on Wednesday, July 29th. Evercore upped their price target on shares of Seagate Technology from $750.00 to $1,000.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 12th. Wall Street Zen cut shares of Seagate Technology from a “strong-buy” rating to a “buy” rating in a report on Saturday. Finally, Wells Fargo & Company lifted their price objective on shares of Seagate Technology from $1,100.00 to $1,180.00 and gave the company an “overweight” rating in a research report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $986.00.

Seagate Technology Stock Down 9.2%

The stock has a market cap of $204.77 billion, a P/E ratio of 65.09 and a beta of 2.06. The company has a current ratio of 1.67, a quick ratio of 1.17 and a debt-to-equity ratio of 1.56. The stock’s 50-day moving average is $894.87 and its 200-day moving average is $674.58.

Seagate Technology (NASDAQ:STX) last issued its quarterly earnings results on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share for the quarter, topping analysts’ consensus estimates of $5.10 by $0.61. Seagate Technology had a net margin of 26.11% and a return on equity of 369.98%. The company had revenue of $3.63 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same period in the prior year, the business posted $2.59 EPS. The business’s revenue for the quarter 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. As a group, research analysts anticipate that Seagate Technology Holdings PLC will post 34.42 earnings per share for the current fiscal year.

Seagate Technology Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th will be given a dividend of $0.74 per share. The ex-dividend date is Thursday, September 24th. This represents a $2.96 annualized dividend and a dividend yield of 0.3%. Seagate Technology’s dividend payout ratio (DPR) is 21.33%.

Insider Buying and Selling

In other news, CEO William D. Mosley sold 17,080 shares of the company’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $827.30, for a total value of $14,130,284.00. Following the completion of the sale, the chief executive officer owned 295,517 shares in the company, valued at $244,481,214.10. This represents a 5.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP James Ci Lee sold 694 shares of the firm’s stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $877.45, for a total value of $608,950.30. Following the transaction, the executive vice president directly owned 347 shares of the company’s stock, valued at $304,475.15. This represents a 66.67% 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 ninety days, insiders have sold 133,650 shares of company stock worth $116,077,574. 0.79% of the stock is owned by corporate insiders.

Institutional Trading of Seagate Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in STX. Bridgewater Advisors Inc. increased its stake in 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 during the last quarter. Annis Gardner Whiting Capital Advisors LLC boosted its position in shares of 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 acquiring an additional 15 shares during the last quarter. Beaumont Financial Advisors LLC grew its holdings in shares of Seagate Technology by 2.1% during the first quarter. Beaumont Financial Advisors LLC now owns 820 shares of the data storage provider’s stock worth $321,000 after purchasing an additional 17 shares in the last quarter. Cornerstone Wealth Group LLC grew its holdings in shares of Seagate Technology by 0.5% during the first quarter. Cornerstone Wealth Group LLC now owns 3,542 shares of the data storage provider’s stock worth $1,388,000 after purchasing an additional 19 shares in the last quarter. Finally, WealthCollab LLC increased its position in shares of Seagate Technology by 27.4% in the first quarter. WealthCollab LLC now owns 93 shares of the data storage provider’s stock worth $36,000 after purchasing an additional 20 shares during the last quarter. 92.87% of the stock is currently owned by institutional investors.

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.