Seagate Technology (NASDAQ:STX) Shares Gap Down – Here’s Why

Seagate Technology Holdings PLC (NASDAQ:STX) shares gapped down before the market opened on Tuesday. The stock had previously closed at $753.25, but opened at $693.93. Seagate Technology shares last traded at $718.3320, with a volume of 1,327,126 shares.

Key Stories Impacting Seagate Technology

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

• Positive Sentiment: Strong earnings and cash flow support the bull case. Seagate’s fiscal 2026 sales rose 34% to $12.2 billion, adjusted operating margins reached 36.5%, and free cash flow increased sharply. Its latest quarterly results also exceeded analyst expectations for revenue and earnings. Seagate’s Improving Earnings Support a Cautious Upside
• Positive Sentiment: AI-related data-center demand remains a potential catalyst. Seagate’s mass-capacity hard drives are positioned to benefit from the growth of AI-generated data. Its HAMR technology supports higher-capacity drives, including 44TB products, with substantially larger capacities planned over time. Seagate’s Improving Earnings Support a Cautious Upside
• Neutral Sentiment: The next major company-specific event is approaching. Seagate is scheduled to report fiscal first-quarter 2027 results after the market closes on October 27, followed by an investor conference call. Investors will look for evidence that demand, pricing, margins and supply conditions remain favorable. Seagate Technology to Report Fiscal First Quarter 2027 Financial Results
• Negative Sentiment: Supply-chain and China competition fears are driving the immediate weakness. Reports of technological advances in China, along with a selloff in memory stocks and declines among Asian chipmakers, have raised concerns that future storage and component supplies could become less constrained. Seagate and Western Digital Shares Plummet
• Negative Sentiment: Valuation and volatility amplify investor sensitivity. After a substantial multiyear rally, STX remains a high-beta stock trading at an elevated earnings multiple. A sharp recent pullback, despite analysts largely maintaining earnings estimates, reflects heightened concern that expectations may have outrun near-term fundamentals. Rapid Growth, High Volatility, and Near 50% Upside

Analysts Set New Price Targets

Several analysts have issued reports on the stock. TD Cowen upped their price target on shares of Seagate Technology from $850.00 to $1,000.00 and gave the company a “buy” rating in a report on Wednesday, July 29th. JPMorgan Chase & Co. raised their price objective on shares of Seagate Technology from $1,095.00 to $1,240.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. Citigroup lifted their price objective on Seagate Technology from $1,240.00 to $1,300.00 and gave the stock a “buy” rating in a research report on Wednesday, July 29th. Bank of America lifted their price objective on Seagate Technology from $1,000.00 to $1,150.00 and gave the stock a “buy” rating in a research report on Wednesday, July 1st. Finally, Wells Fargo & Company upped their target price on Seagate Technology from $1,100.00 to $1,180.00 and gave the company an “overweight” rating in a research note on Wednesday, July 29th. Twenty-two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $986.00.

Seagate Technology Trading Down 4.5%

The firm has a market capitalization of $162.25 billion, a PE ratio of 51.41 and a beta of 2.06. The company has a quick ratio of 1.17, a current ratio of 1.67 and a debt-to-equity ratio of 1.56. The business’s fifty day moving average price is $849.09 and its 200 day moving average price is $800.42.

Seagate Technology (NASDAQ:STX) last posted its quarterly earnings data on Tuesday, July 28th. The data storage provider reported $5.71 earnings per share for the quarter, beating 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 business had revenue of $3.63 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same quarter in the previous year, the business posted $2.59 earnings per share. The company’s revenue was up 48.5% on a year-over-year basis. Seagate Technology has set its Q1 2027 guidance at 7.100-7.500 EPS. As a group, analysts expect that Seagate Technology Holdings PLC will post 35.70 EPS for the current fiscal year.

Seagate Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Stockholders of record on Thursday, September 24th were issued a dividend of $0.74 per share. The ex-dividend date was Thursday, September 24th. This represents a $2.96 annualized dividend and a dividend yield of 0.4%. Seagate Technology’s dividend payout ratio (DPR) is 21.33%.

Insiders Place Their Bets

In other news, 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 completion of the sale, the executive vice president owned 22,693 shares of the company’s stock, valued at $19,922,411.63. The trade was a 29.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William D. Mosley sold 11,002 shares of the company’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 completion of the transaction, the chief executive officer owned 362,108 shares of the company’s stock, valued at $338,788,244.80. The trade was a 2.95% 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 in the last three months. Company insiders own 0.51% of the company’s stock.

Institutional Trading of Seagate Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in STX. Retirement Wealth Solutions LLC lifted its stake in Seagate Technology by 70.6% in the second quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider’s stock valued at $28,000 after buying an additional 12 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC boosted its holdings in shares of Seagate Technology by 23.1% during the first 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 period. WealthCollab LLC grew its position in shares of Seagate Technology by 27.4% during the first quarter. WealthCollab LLC now owns 93 shares of the data storage provider’s stock worth $36,000 after acquiring an additional 20 shares during the last quarter. University of Texas Texas AM Investment Management Co. bought a new position in shares of Seagate Technology during the fourth quarter worth about $37,000. Finally, McMillan Office Inc. bought a new position in shares of Seagate Technology during the first quarter worth about $39,000. Hedge funds and other institutional investors own 92.87% of the company’s stock.

About Seagate Technology

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.