Seagate Technology Holdings PLC (NASDAQ:STX – Get Free Report) dropped 9.2% during mid-day trading on Tuesday. The stock 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.
Trending Headlines about 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.
Wall Street Analyst Weigh In
A number of equities analysts have weighed in on the stock. Rosenblatt Securities boosted their target price on shares of Seagate Technology from $1,300.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Wednesday, July 29th. TD Cowen raised 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. Zacks Research cut shares of Seagate Technology from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Morgan Stanley upped their price objective on Seagate Technology from $1,035.00 to $1,187.00 and gave the stock an “overweight” rating in a report on Wednesday, July 29th. Finally, Wells Fargo & Company lifted 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 investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Seagate Technology presently has a consensus rating of “Moderate Buy” and a consensus target price of $986.00.
Seagate Technology Trading Down 9.2%
The stock has a market capitalization of $183.19 billion, a P/E ratio of 58.04 and a beta of 2.06. The firm’s 50 day moving average price is $856.07 and its 200 day moving average price is $782.73. The company has a debt-to-equity ratio of 1.56, a current ratio of 1.67 and a quick ratio of 1.17.
Seagate Technology (NASDAQ:STX – Get Free Report) last posted its quarterly earnings data 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. 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 for the quarter, compared to analyst estimates of $3.50 billion. During the same quarter in the previous year, the firm posted $2.59 earnings per share. Seagate Technology’s quarterly 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, equities research analysts expect that Seagate Technology Holdings PLC will post 35.7 earnings per share for the current fiscal year.
Seagate Technology Dividend Announcement
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Thursday, September 24th will be issued 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 (DPR) is currently 21.33%.
Insider Transactions at Seagate Technology
In other Seagate Technology news, CFO Gianluca Romano sold 49,984 shares of Seagate Technology stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $772.16, for a total value of $38,595,645.44. Following the completion of the transaction, the chief financial officer directly owned 70,756 shares of the company’s stock, valued at $54,634,952.96. This trade represents a 41.40% decrease in their position. 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 firm’s 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 owned 31,132 shares of the company’s stock, valued at $24,038,573.80. This trade represents a 33.19% decrease in their position. 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. In the last three months, insiders have sold 466,959 shares of company stock worth $378,840,741. 0.51% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On Seagate Technology
Several hedge funds have recently modified their holdings of STX. Retirement Wealth Solutions LLC raised its position in shares of Seagate Technology by 70.6% in the 2nd quarter. Retirement Wealth Solutions LLC now owns 29 shares of the data storage provider’s stock valued at $28,000 after purchasing an additional 12 shares during the last quarter. Bridgewater Advisors Inc. lifted its position in Seagate Technology by 0.9% during the first quarter. Bridgewater Advisors Inc. now owns 1,477 shares of the data storage provider’s stock valued at $579,000 after purchasing an additional 13 shares during the period. Baker Tilly Wealth Management LLC boosted its holdings in Seagate Technology by 4.6% in the third quarter. Baker Tilly Wealth Management LLC now owns 319 shares of the data storage provider’s stock valued at $295,000 after purchasing an additional 14 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC grew its position 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 worth $31,000 after purchasing an additional 15 shares during the period. Finally, Blalock Williams LLC raised its stake in shares of 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 buying an additional 16 shares during the last quarter. 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.
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