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

Shares of Seagate Technology Holdings PLC (NASDAQ:STX) gapped down prior to trading on Friday . The stock had previously closed at $913.36, but opened at $879.21. Seagate Technology shares last traded at $867.9510, with a volume of 948,345 shares traded.

Seagate Technology News Roundup

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

• Positive Sentiment: Several previews say Seagate remains well positioned to beat fiscal Q4 expectations, citing AI-driven storage demand, rising HAMR adoption, and improving margins that could support another strong earnings report. Article title: STX Likely to Beat Q4 Earnings: Is it a Portfolio Must-Have Now?
• Positive Sentiment: Another earnings preview argues Seagate’s AI tailwinds are intact, with higher-density storage demand and operating leverage supporting profitability, though valuation has become less compelling. Article title: Seagate Earnings Preview: AI Tailwinds Remain, But Fading Sentiment Caps The Premium
• Positive Sentiment: Commentary from the last two days says Seagate could rebound after being off from recent highs if earnings confirm strong demand for high-capacity storage. Article title: Seagate Stock Is Off 20% From Its High. Why July 28 Earnings Could Trigger a Rebound.
• Neutral Sentiment: Short-interest data showed no meaningful change in borrowed shares, so it does not appear to be a major driver of trading today.
• Neutral Sentiment: One market note highlighted rising losses across mega-cap AI names like Tesla, Alphabet, Meta, Amazon, and Microsoft, reinforcing the broader risk-off tone in AI-related stocks. Article title: Why Tesla, Google, and other Mag 7 stocks are losing billions in valuation
• Negative Sentiment: A trading-focused report says Seagate is falling on broad semiconductor weakness and concerns that AI spending may be shifting, which is likely weighing on the shares despite upbeat earnings expectations. Article title: Why Is Seagate Stock Falling on Friday?

Analyst Ratings Changes

A number of brokerages recently commented on STX. Zacks Research lowered Seagate Technology from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 29th. The Goldman Sachs Group lifted their price objective on Seagate Technology from $385.00 to $700.00 and gave the stock a “buy” rating in a research note on Wednesday, April 29th. Sanford C. Bernstein upped their price objective on Seagate Technology from $620.00 to $1,000.00 and gave the stock an “outperform” rating in a report on Wednesday, April 29th. Argus increased their target price on Seagate Technology from $450.00 to $750.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Finally, UBS Group raised their target price on shares of Seagate Technology from $515.00 to $545.00 and gave the company a “neutral” rating in a report on Wednesday, April 29th. Twenty-two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Seagate Technology has a consensus rating of “Moderate Buy” and an average target price of $898.52.

Seagate Technology Stock Performance

The firm has a market capitalization of $190.97 billion, a PE ratio of 80.81 and a beta of 2.04. The business has a 50-day simple moving average of $893.15 and a 200-day simple moving average of $610.20. The company has a debt-to-equity ratio of 3.16, a current ratio of 1.33 and a quick ratio of 0.85.

Seagate Technology (NASDAQ:STX) last announced its earnings results on Tuesday, April 28th. The data storage provider reported $4.10 EPS for the quarter, topping analysts’ consensus estimates of $3.51 by $0.59. The firm had revenue of $3.11 billion during the quarter, compared to analysts’ expectations of $2.96 billion. Seagate Technology had a return on equity of 1,005.65% and a net margin of 21.60%.The company’s quarterly revenue was up 44.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.90 EPS. Seagate Technology has set its Q4 2026 guidance at 4.800-5.200 EPS. Equities research analysts expect that Seagate Technology Holdings PLC will post 14.14 earnings per share for the current fiscal year.

Seagate Technology Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, July 7th. Investors of record on Wednesday, June 24th were given a $0.74 dividend. The ex-dividend date was Wednesday, June 24th. This represents a $2.96 dividend on an annualized basis and a yield of 0.3%. Seagate Technology’s dividend payout ratio (DPR) is currently 28.08%.

Insider Activity

In other news, CEO William D. Mosley sold 30,000 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $751.29, for a total value of $22,538,700.00. Following the completion of the sale, the chief executive officer owned 339,591 shares in the company, valued at approximately $255,131,322.39. This trade represents a 8.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Gianluca Romano sold 22,488 shares of Seagate Technology stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $774.22, for a total transaction of $17,410,659.36. Following the transaction, the chief financial officer directly owned 42,847 shares of the company’s stock, valued at approximately $33,173,004.34. This represents a 34.42% decrease in their ownership of the stock. 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. Over the last three months, insiders have sold 151,069 shares of company stock worth $126,191,753. 0.79% of the stock is currently owned by insiders.

Institutional Trading of Seagate Technology

Several institutional investors have recently added to or reduced their stakes in STX. Massachusetts Financial Services Co. MA grew its stake in shares of Seagate Technology by 1,510.1% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 2,008,516 shares of the data storage provider’s stock valued at $553,125,000 after buying an additional 1,883,769 shares during the last quarter. Norges Bank bought a new stake in shares of Seagate Technology during the 4th quarter worth approximately $498,363,000. Soroban Capital Partners LP lifted its stake in shares of Seagate Technology by 1,468.1% during the 2nd quarter. Soroban Capital Partners LP now owns 1,417,600 shares of the data storage provider’s stock worth $204,602,000 after acquiring an additional 1,327,197 shares during the last quarter. Janus Henderson Group PLC boosted its holdings in Seagate Technology by 3,872.1% during the 1st quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider’s stock valued at $378,985,000 after acquiring an additional 943,170 shares during the period. Finally, Deutsche Bank AG boosted its holdings in Seagate Technology by 102.0% during the 4th quarter. Deutsche Bank AG now owns 1,599,962 shares of the data storage provider’s stock valued at $440,614,000 after acquiring an additional 807,962 shares during the period. Institutional investors own 92.87% of the company’s stock.

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.