TLDR
- STX jumped 6.3% after reporting quarterly revenue of $3.63 billion, up 48.5% year over year, with EPS of $5.71 beating estimates of $5.10
- Seagate guided Q1 2027 EPS to $7.10-$7.50, well above what analysts had expected
- Multiple analysts raised price targets, with Rosenblatt setting the highest at $1,400 and Barclays lifting its target to $1,250
- Institutional investors own 92.87% of STX, with several firms adding to positions in Q2
- Insiders sold around 191,765 shares worth roughly $161.9 million over the past 90 days, all through pre-arranged 10b5-1 plans
Seagate Technology (STX) stock climbed 6.3% on Friday, opening at $849.28, as investors responded to a strong earnings report and an upbeat outlook tied to rising demand for AI storage infrastructure.
Seagate Technology Holdings plc, STX
The company posted quarterly revenue of $3.63 billion, up 48.5% from the same period last year and ahead of the $3.50 billion analyst estimate. EPS came in at $5.71, topping the consensus of $5.10 by $0.61.
Seagate’s net margin stood at 26.11%, and its return on equity hit 369.98%. Those are hard numbers to argue with.
For Q1 2027, management guided EPS to a range of $7.10 to $7.50. Analysts currently forecast full-year fiscal 2027 EPS of $35.70.
The earnings beat came alongside a broader rally in memory and storage stocks. SK Hynix rose 7% the same session, as investors added exposure to companies supplying AI data centers with high-capacity storage.
Analyst Price Targets Rise
Wall Street responded quickly to the results. Barclays raised its price target from $1,000 to $1,250 and kept an “overweight” rating. JPMorgan lifted its target from $1,095 to $1,240, also rating the stock “overweight.”
Rosenblatt Securities set the highest target on the Street, moving its price objective from $1,300 to $1,400 with a “buy” rating. Susquehanna bumped its target from $775 to $875 but held a “neutral” rating.
The stock currently has a consensus rating of “Moderate Buy” with a consensus price target of $986.
Institutional Buying Continues
NI Acquisitions Company LLC disclosed a new position in Seagate during Q2, purchasing 4,877 shares valued at approximately $4.7 million. STX now makes up 1.7% of that firm’s portfolio and is its 16th largest holding.
Several other firms also added to existing positions. Retirement Wealth Solutions increased its stake by 70.6% in Q2. Institutional investors collectively own 92.87% of the company.
Seagate’s 52-week range runs from $183.02 to $1,145.00. The stock’s year-to-date price performance sits at 190.71%, reflecting how much the AI storage trade has moved in the company’s favor.
The company also declared a quarterly dividend of $0.74 per share, payable October 7 to shareholders of record as of September 24. That puts the annualized dividend at $2.96, with a yield of 0.3% and a payout ratio of 21.33%.
On the insider side, executives sold a combined 191,765 shares worth approximately $161.9 million over the past 90 days. CFO Gianluca Romano sold 14,091 shares at $811.25 each on August 7. EVP Ban Teh sold 9,862 shares at an average of $852.97 on August 21. All transactions were executed through pre-arranged Rule 10b5-1 plans. Insiders currently own 0.79% of the company.
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