Seagate (STX) Stock Surges 6.3% as Analysts Set $1,400 Price Target Following Strong Earnings

Key Highlights

Table of Contents

Shares of STX surged 6.3% following a quarterly revenue announcement of $3.63 billion, representing a 48.5% year-over-year increase, with earnings per share of $5.71 surpassing the $5.10 consensus
Management issued Q1 2027 EPS guidance of $7.10-$7.50, significantly exceeding Wall Street expectations
Several analysts upgraded their price targets, led by Rosenblatt’s Street-high $1,400 target and Barclays’ increase to $1,250
Institutional ownership stands at 92.87% of STX, with multiple investment firms expanding their stakes during Q2
Company insiders divested approximately 191,765 shares totaling around $161.9 million in the last 90 days via pre-scheduled 10b5-1 trading arrangements

Shares of Seagate Technology (STX) advanced 6.3% during Friday’s session, beginning trading at $849.28, following the company’s robust earnings announcement and optimistic forward guidance driven by accelerating AI storage infrastructure requirements.

Seagate Technology Holdings plc, STX

The data storage giant reported quarterly revenues reaching $3.63 billion, marking a 48.5% climb compared to the prior-year period and exceeding Wall Street’s $3.50 billion projection. Earnings per share landed at $5.71, comfortably beating the Street consensus of $5.10 by $0.61.

Seagate’s net profit margin registered at 26.11%, while return on equity reached an impressive 369.98%. These metrics demonstrate exceptional operational performance.

Looking ahead to Q1 2027, company leadership projected EPS between $7.10 and $7.50. Current analyst estimates for the complete fiscal year 2027 stand at $35.70 per share.

The stellar results coincided with strength across memory and storage sector stocks. SK Hynix climbed 7% during the same trading session, as market participants increased allocations to companies serving AI data center infrastructure with high-density storage solutions.

Wall Street Upgrades Price Objectives

Analyst firms moved swiftly to adjust their outlooks following the earnings release. Barclays increased its price objective from $1,000 to $1,250 while maintaining an “overweight” recommendation. JPMorgan elevated its target from $1,095 to $1,240, also assigning an “overweight” rating.

Rosenblatt Securities established the most bullish target among covering analysts, raising its price objective from $1,300 to $1,400 alongside a “buy” rating. Susquehanna adjusted its target upward from $775 to $875 while maintaining a “neutral” stance.

The equity currently carries a consensus rating of “Moderate Buy” with an average price target of $986 across all covering analysts.

Institutional Activity Remains Strong

NI Acquisitions Company LLC initiated a fresh position in Seagate during the second quarter, acquiring 4,877 shares worth approximately $4.7 million. The position now represents 1.7% of the firm’s total portfolio and ranks as its 16th largest holding.

Multiple additional institutional investors expanded their existing holdings. Retirement Wealth Solutions grew its stake by 70.6% during Q2. Collectively, institutional investors control 92.87% of the company’s outstanding shares.

Seagate’s 52-week trading range extends from $183.02 to $1,145.00. Year-to-date, the stock has delivered returns of 190.71%, underscoring the significant impact AI storage trends have had on the company’s valuation.

The company announced a quarterly dividend distribution of $0.74 per share, scheduled for payment on October 7 to stockholders of record as of September 24. This establishes an annualized dividend of $2.96, yielding 0.3% with a payout ratio of 21.33%.

Regarding insider transactions, company executives collectively disposed of 191,765 shares valued at approximately $161.9 million during the past 90 days. CFO Gianluca Romano offloaded 14,091 shares at $811.25 per share on August 7. EVP Ban Teh sold 9,862 shares at an average price of $852.97 on August 21. All sales were conducted under pre-established Rule 10b5-1 trading plans. Insider ownership currently accounts for 0.79% of total shares outstanding.

✨ Limited Time Offer