Seagate Technology Holdings PLC (NASDAQ:STX) achieved a new 52-week high on Tuesday, August 1, 2023, following an upgrade from Bank of America. The investment firm raised its price target for Seagate from $170.00 to $215.00, maintaining a buy rating on the stock. During mid-day trading, Seagate shares peaked at $214.20 before closing at $211.12, with a significant trading volume of 7,395,171 shares.
In addition to Bank of America’s positive outlook, several other analysts have recently provided insights on Seagate’s performance. On May 30, Wall Street Zen downgraded the stock from a “buy” to a “hold” rating. Conversely, Cantor Fitzgerald and Rosenblatt Securities offered more optimistic views, with Cantor raising its rating from “neutral” to “overweight” and setting a price target of $175.00. Rosenblatt increased its target from $185.00 to $200.00, while Wells Fargo boosted its price target from $122.00 to $160.00. Barclays also increased its target from $180.00 to $200.00. Overall, the consensus among analysts indicates a “Moderate Buy” rating, with an average target price of $160.89.
Insider Transactions and Institutional Activity
In related developments, insider activity has also been noteworthy. On August 1, Executive Vice President Ban Seng Teh sold 5,905 shares at an average price of $155.00, totaling $915,275.00. This transaction reduced Teh’s ownership in Seagate by nearly 49.00%. Director Jay L. Geldmacher followed suit on August 6, selling 2,500 shares at an average price of $150.50, amounting to $376,250.00 and resulting in an 87.66% decrease in his holdings.
In the last quarter, corporate insiders sold 75,558 shares valued at approximately $12,209,971. Currently, corporate insiders hold just 0.79% of the company’s stock.
Institutional investors have shown increasing interest in Seagate Technology as well. In the second quarter, Valeo Financial Advisors LLC acquired a new stake worth about $366,000. Osaic Holdings Inc. expanded its holdings by 59.3%, owning 68,115 shares valued at $9,162,000. Other firms, such as FSC Wealth Advisors LLC and Orion Portfolio Solutions LLC, also increased their stakes, contributing to a total institutional ownership of approximately 92.87%.
Financial Performance and Future Outlook
Seagate Technology’s stock saw a rise of 7.7%, contributing to a market capitalization of $44.96 billion. The firm reported $2.59 earnings per share for its most recent quarter, exceeding analysts’ estimates of $2.45. Revenue for the quarter reached $2.44 billion, surpassing the forecast of $2.40 billion. This marked a substantial 29.5% increase in revenue compared to the same quarter last year, when earnings per share were just $1.05.
Looking ahead, Seagate has provided guidance for the first quarter of fiscal year 2026, projecting earnings per share between $2.100 and $2.500. Analysts anticipate the company will post an average of 6.83 earnings per share for the current fiscal year.
Moreover, the company declared a quarterly dividend of $0.72 per share, payable on October 9, 2023, to stockholders recorded as of September 30, 2023. This dividend indicates an annualized payout of $2.88, with a yield of 1.4%. The dividend payout ratio currently stands at 42.54%.
Seagate Technology’s board has also authorized a share buyback plan, allowing the company to repurchase up to $5.00 billion in outstanding shares, which represents a potential 21.6% of its stock. Such buyback initiatives typically suggest that company leadership views the stock as undervalued.
Seagate Technology Holdings PLC, headquartered in the United States, provides data storage technology and solutions across multiple regions, including Singapore and the Netherlands. The company specializes in mass capacity storage products, including enterprise hard disk drives (HDDs), solid-state drives (SSDs), and network-attached storage drives.