Zacks Investment Research upgraded shares of Seagate Technology (NASDAQ:STX) from a hold rating to a buy rating in a research report released on Friday, Zacks.com reports. The brokerage currently has $52.00 price objective on the data storage provider’s stock.
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 analysts also recently weighed in on the company. Benchmark restated a hold rating on shares of Seagate Technology in a research note on Tuesday, February 5th. ValuEngine downgraded Seagate Technology from a sell rating to a strong sell rating in a research note on Thursday, January 17th. BidaskClub upgraded Seagate Technology from a hold rating to a buy rating in a research note on Tuesday, January 29th. Mizuho restated a neutral rating on shares of Seagate Technology in a research note on Tuesday, February 5th. Finally, Maxim Group restated a hold rating and set a $49.00 target price (down previously from $51.00) on shares of Seagate Technology in a research note on Tuesday, February 5th. Five investment analysts have rated the stock with a sell rating, sixteen have issued a hold rating and four have issued a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average target price of $44.73.
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 Zacks’ consensus estimate of $1.27 by $0.14. The business had revenue of $2.72 billion for the quarter, compared to analyst estimates of $2.71 billion. Seagate Technology had a return on equity of 105.74% and a net margin of 14.77%. The firm’s revenue for the quarter was down 6.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.48 EPS. Research analysts expect that Seagate Technology will post 4.67 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 3rd. Shareholders of record on Wednesday, March 20th were given a $0.63 dividend. The ex-dividend date was Tuesday, March 19th. This represents a $2.52 dividend on an annualized basis and a dividend yield of 5.60%. Seagate Technology’s dividend payout ratio is currently 45.74%.
In other Seagate Technology news, EVP James J. Murphy sold 20,832 shares of the firm’s stock in a transaction that occurred on Thursday, February 14th. The stock was sold at an average price of $45.75, for a total value of $953,064.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Stephen J. Luczo sold 50,000 shares of the firm’s stock in a transaction that occurred on Wednesday, February 20th. The stock was sold at an average price of $46.09, for a total value of $2,304,500.00. The disclosure for this sale can be found here. In the last quarter, insiders acquired 3,700,000 shares of company stock valued at $166,497,500 and sold 120,832 shares valued at $5,541,064. 1.00% of the stock is currently owned by company insiders.
Hedge funds have recently made changes to their positions in the business. Waratah Capital Advisors Ltd. bought a new stake in shares of Seagate Technology in the 4th quarter worth approximately $60,000. Essex Savings Bank bought a new stake in shares of Seagate Technology in the 4th quarter worth approximately $70,000. Financial Gravity Companies Inc. bought a new stake in shares of Seagate Technology in the 4th quarter worth approximately $75,000. Certified Advisory Corp lifted its position in shares of Seagate Technology by 17.5% in the 4th quarter. Certified Advisory Corp now owns 2,028 shares of the data storage provider’s stock worth $78,000 after acquiring an additional 302 shares during the period. Finally, Proffitt & Goodson Inc. bought a new stake in shares of Seagate Technology in the 1st quarter worth approximately $90,000. Institutional investors own 96.05% 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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