Key Highlights
- Seagate shares surged 6.3% following a quarterly revenue report of $3.63 billion, marking a 48.5% increase year-over-year, while EPS of $5.71 exceeded the $5.10 consensus
- Management issued Q1 2027 EPS guidance of $7.10-$7.50, significantly surpassing Wall Street’s projections
- Several analysts upgraded their price targets, with Rosenblatt leading at $1,400 and Barclays increasing to $1,250
- Institutional ownership stands at 92.87%, with multiple investment firms expanding their positions during Q2
- Company insiders offloaded approximately 191,765 shares valued at around $161.9 million in the last three months via pre-scheduled 10b5-1 trading plans
Shares of Seagate Technology (STX) advanced 6.3% during Friday’s trading session, starting the day at $849.28, following the data storage company’s impressive quarterly results and optimistic forecast driven by accelerating AI infrastructure demand.
Seagate Technology Holdings plc, STX
The storage solutions provider reported quarterly revenues reaching $3.63 billion, representing a substantial 48.5% jump compared to the prior-year period and exceeding Wall Street’s $3.50 billion projection. Earnings per share landed at $5.71, beating the Street’s $5.10 estimate by $0.61.
Seagate’s profitability metrics remained robust, with net margins at 26.11% and return on equity reaching an impressive 369.98%.
Looking ahead to Q1 fiscal 2027, company leadership projected EPS between $7.10 and $7.50. Wall Street analysts are currently modeling full-year fiscal 2027 EPS at $35.70.
The strong performance occurred during a broader upswing in memory and storage equities. SK Hynix gained 7% in the same session, reflecting increased investor interest in suppliers serving AI-focused data centers requiring massive storage capacity.
Wall Street Upgrades Price Objectives
Analyst firms moved swiftly following the earnings announcement. Barclays elevated its price objective from $1,000 to $1,250 while maintaining an “overweight” recommendation. JPMorgan increased its target from $1,095 to $1,240, also assigning an “overweight” rating.
Rosenblatt Securities posted the Street’s most bullish outlook, raising its price target from $1,300 to $1,400 alongside a “buy” rating. Susquehanna adjusted its target upward from $775 to $875 but maintained a “neutral” stance.
Current consensus among analysts shows a “Moderate Buy” rating with an average price target of $986.
Institutional Interest Strengthens
NI Acquisitions Company LLC initiated a position in Seagate during the second quarter, acquiring 4,877 shares worth roughly $4.7 million. The holding now represents 1.7% of the firm’s total portfolio and ranks as its 16th largest investment.
Additional institutional players expanded their stakes as well. Retirement Wealth Solutions boosted its position by 70.6% in Q2. Overall, institutional investors control 92.87% of outstanding shares.
Seagate’s shares have traded between $183.02 and $1,145.00 over the past 52 weeks. The stock has delivered a year-to-date return of 190.71%, demonstrating the significant momentum behind AI storage investments.
The company announced a quarterly dividend of $0.74 per share, scheduled for distribution on October 7 to shareholders registered by September 24. This translates to an annual dividend of $2.96, yielding 0.3% with a payout ratio of 21.33%.
Regarding insider activity, company executives divested a total of 191,765 shares valued at approximately $161.9 million during the previous 90-day period. CFO Gianluca Romano offloaded 14,091 shares at $811.25 per share on August 7. EVP Ban Teh sold 9,862 shares averaging $852.97 on August 21. These transactions were completed under pre-established Rule 10b5-1 trading arrangements. Company insiders maintain ownership of 0.79% of total shares.
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