Seagate Technology (NASDAQ:STX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Tuesday.
According to Zacks, “Seagate is the second-largest manufacturer of hard disk drives (HDDs) in the U.S. The company is benefiting from growing Exabyte demand across most of the markets it caters. Moreover, increasing traction for mass storage solutions across company’s edge and enterprise markets remains a tailwind. We believe Seagate’s NAND-supply deal with Toshiba will help it in developing advanced HDD, SSD and hybrid solutions. Its Nearline’s rapid adoption is likely to boost Seagate’s competitive position against Western Digital. . However, stiff competition from peers might lead to pricing pressure. Further, the disk drive market is highly competitive and has experienced drastic pricing pressure due to supply/demand volatility. Also, a declining trend in PC shipments is detrimental to business prospects of Seagate, which continues to depend substantially on PC sales.”
Several other equities analysts also recently commented on STX. BidaskClub downgraded shares of Seagate Technology from a “buy” rating to a “hold” rating in a research note on Friday, March 15th. ValuEngine raised shares of Seagate Technology from a “sell” rating to a “hold” rating in a research note on Monday, February 4th. Maxim Group reissued a “hold” rating and issued a $49.00 price objective (down previously from $51.00) on shares of Seagate Technology in a research note on Tuesday, February 5th. Benchmark reissued a “hold” rating on shares of Seagate Technology in a research note on Tuesday, February 5th. Finally, Wells Fargo & Co dropped their price objective on shares of Seagate Technology from $50.00 to $45.00 and set a “market perform” rating for the company in a research note on Tuesday, February 5th. Five analysts have rated the stock with a sell rating, eighteen have given a hold rating and four have assigned a buy rating to the company. The company presently has an average rating of “Hold” and a consensus price target of $45.50.
Seagate Technology (NASDAQ:STX) last issued its quarterly earnings data on Monday, February 4th. The data storage provider reported $1.41 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.27 by $0.14. The business had revenue of $2.72 billion during the quarter, compared to the consensus estimate of $2.71 billion. Seagate Technology had a net margin of 14.77% and a return on equity of 105.74%. The firm’s revenue was down 6.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.48 EPS. On average, research analysts forecast that Seagate Technology will post 4.66 earnings per share for the current fiscal year.
In other news, Director Stephen J. Luczo sold 50,000 shares of the firm’s stock in a transaction on Wednesday, February 20th. The shares were sold at an average price of $46.09, for a total transaction of $2,304,500.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Holdings L.P. Valueact purchased 725,000 shares of the company’s stock in a transaction dated Friday, February 8th. The shares were acquired at an average cost of $44.60 per share, with a total value of $32,335,000.00. The disclosure for this purchase can be found here. In the last ninety days, insiders have bought 3,700,000 shares of company stock valued at $166,497,500 and have sold 120,832 shares valued at $5,541,064. 1.00% of the stock is currently owned by company insiders.
Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc increased its position in shares of Seagate Technology by 1.3% during the third quarter. Vanguard Group Inc now owns 31,122,744 shares of the data storage provider’s stock worth $1,473,662,000 after buying an additional 400,201 shares during the period. ValueAct Holdings L.P. increased its position in shares of Seagate Technology by 3.4% during the fourth quarter. ValueAct Holdings L.P. now owns 27,295,160 shares of the data storage provider’s stock worth $1,053,320,000 after buying an additional 898,595 shares during the period. FMR LLC increased its position in shares of Seagate Technology by 2.6% during the fourth quarter. FMR LLC now owns 23,656,503 shares of the data storage provider’s stock worth $912,904,000 after buying an additional 600,068 shares during the period. BlackRock Inc. increased its position in shares of Seagate Technology by 0.7% during the fourth quarter. BlackRock Inc. now owns 19,513,940 shares of the data storage provider’s stock worth $753,044,000 after buying an additional 142,543 shares during the period. Finally, Waratah Capital Advisors Ltd. acquired a new stake in shares of Seagate Technology during the fourth quarter worth $60,000. Institutional investors own 94.86% of the company’s stock.
About Seagate Technology
Seagate Technology plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It manufactures and distributes hard disk drives; solid state drives (SSDs), including serial attached small computer system interface and non-volatile memory express SSDs; solid state hybrid drives; and storage subsystems.
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