Seagate Technology PLC (NASDAQ:STX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “Seagate’s first-quarter fiscal 2018 results reflected increasing adoption of its Nearline hard-drive disks (HDDs). The products’ average capacity per drive crossed 5.4 terabytes. Around 1 million units were shipped, which was thrice as much as in the previous quarter. Growth in the 12-terabyte helium nearline product line was also encouraging. Seagate also benefited from strong growth in non-HDD segment revenues. We believe that Nearline’s rapid adoption will boost Seagate’s competitive position against Western Digital. Notably, the company has joined the Bain-led consortium for the acquisition of Toshiba’s flash memory assets. This will also improve its competitive position in the flash memory market. However, both earnings and revenues declined on a year-over-year basis, which reflects weak execution amid intensifying competition. On a year-to-date basis, the stock has underperformed the industry it belongs to.”
Several other research firms have also issued reports on STX. Cowen and Company reiterated a “hold” rating and set a $36.00 price target on shares of Seagate Technology PLC in a research report on Friday, October 13th. Citigroup Inc. reduced their price target on shares of Seagate Technology PLC from $46.00 to $42.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 18th. UBS AG reiterated a “sell” rating and set a $28.00 price target (down previously from $34.00) on shares of Seagate Technology PLC in a research report on Wednesday, July 26th. Jefferies Group LLC set a $29.00 price target on shares of Seagate Technology PLC and gave the stock a “hold” rating in a research report on Sunday, October 15th. Finally, Barclays PLC lowered shares of Seagate Technology PLC from an “equal weight” rating to an “underweight” rating and reduced their price target for the stock from $49.00 to $40.00 in a research report on Thursday, July 13th. Four research analysts have rated the stock with a sell rating, twenty-two have issued a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $41.29.
Seagate Technology PLC (NASDAQ:STX) last posted its quarterly earnings results on Monday, October 23rd. The data storage provider reported $0.96 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.86 by $0.10. The business had revenue of $2.63 billion for the quarter, compared to analyst estimates of $2.54 billion. Seagate Technology PLC had a net margin of 7.41% and a return on equity of 84.50%. The firm’s revenue for the quarter was down 5.9% on a year-over-year basis. During the same quarter last year, the business posted $0.99 EPS.
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In other news, CFO David H. Morton, Jr. sold 7,909 shares of Seagate Technology PLC stock in a transaction dated Monday, October 23rd. The shares were sold at an average price of $40.00, for a total transaction of $316,360.00. Following the completion of the transaction, the chief financial officer now directly owns 25,561 shares in the company, valued at $1,022,440. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jeffrey D. Nygaard acquired 5,000 shares of Seagate Technology PLC stock in a transaction dated Friday, October 27th. The shares were acquired at an average price of $37.38 per share, with a total value of $186,900.00. The disclosure for this purchase can be found here. Company insiders own 0.87% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of STX. Teachers Advisors LLC grew its holdings in shares of Seagate Technology PLC by 3.7% during the first quarter. Teachers Advisors LLC now owns 58,527 shares of the data storage provider’s stock valued at $2,688,000 after buying an additional 2,099 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Seagate Technology PLC by 3.6% during the first quarter. Dimensional Fund Advisors LP now owns 1,163,153 shares of the data storage provider’s stock valued at $53,432,000 after buying an additional 40,927 shares during the last quarter. Amalgamated Bank acquired a new position in shares of Seagate Technology PLC during the first quarter valued at about $215,000. AQR Capital Management LLC grew its holdings in shares of Seagate Technology PLC by 16.0% during the first quarter. AQR Capital Management LLC now owns 321,638 shares of the data storage provider’s stock valued at $14,773,000 after buying an additional 44,283 shares during the last quarter. Finally, Janus Capital Management LLC grew its holdings in shares of Seagate Technology PLC by 107.7% during the first quarter. Janus Capital Management LLC now owns 792,554 shares of the data storage provider’s stock valued at $36,402,000 after buying an additional 411,000 shares during the last quarter. Hedge funds and other institutional investors own 90.32% of the company’s stock.
Seagate Technology PLC Company Profile
Seagate Technology public limited company is a provider of electronic data storage technology and solutions. The Company’s principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid state hybrid drives, solid state drives, peripheral component interconnect express (PCIe) cards and serial advanced technology architecture (SATA) controllers.
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