Zacks Investment Research Lowers Seagate Technology (STX) to Hold

Seagate Technology (NASDAQ:STX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday.

According to Zacks, “Seagate is gaining from the increasing adoption of its Nearline HDDs. We believe that Nearline’s rapid adoption will boost Seagate’s competitive position against Western Digital. Notably, Seagate’s recent NAND-supply deal with Toshiba will help it in developing advanced HDD, SSD and hybrid solutions. This will also improve its competitive position in the flash memory market. Recently, the company announced its second quarter preliminary results. It expects higher revenues and margins in the quarter due to greater demand for its HDD products and operational efficiencies. The company’s efforts in the improvement of areal density with the ramping up of its heat assisted magnetic recording (“HAMR”) technology are yet another positive. Shares of Seagate have outperformed the industry in the past six months. However, stiff competition in the disk drive market and customer concentration remains major risk for Seagate.”

Other analysts have also recently issued reports about the company. TheStreet upgraded Seagate Technology from a “c+” rating to a “b-” rating in a research report on Tuesday. Craig Hallum reiterated a “buy” rating and set a $56.00 price target (up from $50.00) on shares of Seagate Technology in a research report on Tuesday. Wells Fargo & Co reiterated a “market perform” rating and set a $45.00 price target (up from $38.00) on shares of Seagate Technology in a research report on Tuesday. Maxim Group reiterated a “hold” rating and set a $44.00 price target (up from $43.00) on shares of Seagate Technology in a research report on Tuesday. Finally, Royal Bank of Canada boosted their price target on Seagate Technology to $48.00 and gave the stock a “sector perform” rating in a research report on Tuesday. Four analysts have rated the stock with a sell rating, twenty-three have issued a hold rating, six have issued a buy rating and two have assigned a strong buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus target price of $43.15.

Seagate Technology (STX) traded up $0.68 during trading on Thursday, hitting $47.07. The stock had a trading volume of 3,808,700 shares, compared to its average volume of 7,015,986. The stock has a market capitalization of $14,030.00, a PE ratio of 17.83, a PEG ratio of 0.57 and a beta of 1.68. Seagate Technology has a 1-year low of $30.60 and a 1-year high of $50.96. The company has a debt-to-equity ratio of 4.03, a current ratio of 1.96 and a quick ratio of 1.55.

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

In related news, CFO David H. Morton, Jr. sold 7,909 shares of the stock in a transaction dated Monday, October 23rd. The stock was sold at an average price of $40.00, for a total transaction of $316,360.00. Following the transaction, the chief financial officer now owns 25,561 shares of the company’s stock, valued at approximately $1,022,440. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Dambisa F. Moyo sold 8,715 shares of the stock in a transaction dated Wednesday, October 25th. The stock was sold at an average price of $39.01, for a total value of $339,972.15. Following the transaction, the director now directly owns 3,316 shares in the company, valued at approximately $129,357.16. The disclosure for this sale can be found here. In the last ninety days, insiders sold 194,744 shares of company stock worth $9,075,320. Corporate insiders own 0.87% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of STX. WFG Advisors LP lifted its stake in Seagate Technology by 16,536.4% during the 2nd quarter. WFG Advisors LP now owns 3,660 shares of the data storage provider’s stock worth $142,000 after acquiring an additional 3,638 shares in the last quarter. Balentine LLC lifted its stake in Seagate Technology by 56.8% during the 3rd quarter. Balentine LLC now owns 4,471 shares of the data storage provider’s stock worth $148,000 after acquiring an additional 1,619 shares in the last quarter. Pacer Advisors Inc. acquired a new stake in Seagate Technology in the 2nd quarter valued at about $150,000. SpiderRock Advisors LLC raised its position in Seagate Technology by 2,419.5% in the 3rd quarter. SpiderRock Advisors LLC now owns 5,568 shares of the data storage provider’s stock valued at $184,000 after purchasing an additional 5,347 shares in the last quarter. Finally, New England Research & Management Inc. acquired a new stake in Seagate Technology in the 4th quarter valued at about $205,000. 91.32% of the stock is currently owned by hedge funds and other institutional investors.

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About Seagate Technology

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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