Zacks Investment Research Lowers Seagate Technology (STX) to Hold

Zacks Investment Research downgraded shares of Seagate Technology (NASDAQ:STX) from a buy rating to a hold rating in a research note issued to investors on Tuesday.

According to Zacks, “Seagate is gaining from the increasing adoption of its Nearline hard-disk drives (HDDs). 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, merger between Western Digital and SanDisk has made capturing market share in the SSD storage technology more challenging. Intense competition in the disk drive market and customer concentration remains major risk for Seagate. Moreover, declining sales in the PC market is affecting the company’s results.”

Other equities analysts have also issued research reports about the stock. ValuEngine raised shares of Seagate Technology from a hold rating to a buy rating in a research report on Monday, October 2nd. Craig Hallum raised shares of Seagate Technology from a hold rating to a buy rating and set a $50.00 target price on the stock in a research report on Monday, October 2nd. BidaskClub lowered shares of Seagate Technology from a strong-buy rating to a buy rating in a research report on Tuesday, September 12th. Vetr lowered shares of Seagate Technology from a strong-buy rating to a buy rating and set a $41.39 target price on the stock. in a research report on Tuesday, October 31st. Finally, Morgan Stanley boosted their target price on shares of Seagate Technology from $32.00 to $37.00 and gave the stock an equal weight rating in a research report on Tuesday, October 24th. Four analysts have rated the stock with a sell rating, twenty-two have assigned a hold rating, seven have given a buy rating and two have given a strong buy rating to the company’s stock. Seagate Technology has a consensus rating of Hold and a consensus target price of $41.67.

Seagate Technology (NASDAQ:STX) opened at $42.94 on Tuesday. Seagate Technology has a 52-week low of $30.60 and a 52-week high of $50.96. The stock has a market cap of $12,510.00, a price-to-earnings ratio of 16.27, a P/E/G ratio of 0.57 and a beta of 1.68. The company has a debt-to-equity ratio of 4.03, a quick ratio of 1.55 and a current ratio of 1.96.

Seagate Technology (NASDAQ:STX) last announced its earnings results on Monday, October 23rd. The data storage provider reported $0.96 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.86 by $0.10. Seagate Technology had a net margin of 7.41% and a return on equity of 84.50%. The business had revenue of $2.63 billion for the quarter, compared to analyst estimates of $2.54 billion. During the same quarter in the previous year, the firm posted $0.99 earnings per share. Seagate Technology’s revenue was down 5.9% compared to the same quarter last year. analysts expect that Seagate Technology will post 4 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Wednesday, January 3rd. Stockholders of record on Wednesday, December 20th were paid a $0.63 dividend. The ex-dividend date was Tuesday, December 19th. This represents a $2.52 annualized dividend and a dividend yield of 5.87%. Seagate Technology’s dividend payout ratio is presently 95.45%.

In other news, Director Dambisa F. Moyo sold 8,715 shares of the business’s stock in a transaction on Wednesday, October 25th. The shares were sold at an average price of $39.01, for a total value of $339,972.15. Following the sale, the director now owns 3,316 shares in the company, valued at approximately $129,357.16. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO David H. Morton, Jr. sold 7,909 shares of the business’s stock in a transaction on 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 sale, the chief financial officer now owns 25,561 shares in the company, valued at approximately $1,022,440. The disclosure for this sale can be found here. Insiders sold a total of 42,481 shares of company stock worth $1,655,011 in the last 90 days. 0.87% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. L & S Advisors Inc lifted its position in Seagate Technology by 0.5% during the 2nd quarter. L & S Advisors Inc now owns 19,412 shares of the data storage provider’s stock worth $752,000 after buying an additional 100 shares in the last quarter. Neuberger Berman Group LLC lifted its position in Seagate Technology by 0.3% during the 2nd quarter. Neuberger Berman Group LLC now owns 48,218 shares of the data storage provider’s stock worth $1,868,000 after buying an additional 152 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its position in Seagate Technology by 0.8% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 22,065 shares of the data storage provider’s stock worth $855,000 after buying an additional 169 shares in the last quarter. D.A. Davidson & CO. lifted its position in Seagate Technology by 0.3% during the 2nd quarter. D.A. Davidson & CO. now owns 89,587 shares of the data storage provider’s stock worth $3,471,000 after buying an additional 236 shares in the last quarter. Finally, Ropes Wealth Advisors LLC lifted its position in Seagate Technology by 4.3% during the 2nd quarter. Ropes Wealth Advisors LLC now owns 6,572 shares of the data storage provider’s stock worth $255,000 after buying an additional 270 shares in the last quarter. Institutional investors and hedge funds own 91.30% of the company’s stock.

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Seagate Technology 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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