Seagate Technology (STX) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of Seagate Technology (NASDAQ:STX) from a buy rating to a hold rating in a report released on Monday.

According to Zacks, “Seagate is the manufacturer of hard disk drives (HDDs) in the U.S. The company is benefiting from robust adoption driven by strong demand of company’s storage drives. Moreover, increasing traction for mass storage solutions across company’s edge and enterprise markets remains a tailwind. Hints of PC market stabilization as reflected in the latest reports from Gartner and IDC bodes well for Seagate. 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. The company’s effort in the improvement of areal density with the ramping up of its heat assisted magnetic recording technology is another positive. Shares of the company have outperformed industry in the past year. However, stiff competition & customer concentration remain major risks.”

Several other equities research analysts have also weighed in on the stock. ValuEngine lowered shares of Seagate Technology from a buy rating to a hold rating in a research note on Thursday, June 7th. Morgan Stanley increased their price objective on shares of Seagate Technology from $72.00 to $73.00 and gave the stock an overweight rating in a research note on Wednesday, May 2nd. Maxim Group reiterated a hold rating and set a $54.00 price objective (up previously from $52.00) on shares of Seagate Technology in a research note on Wednesday, May 2nd. Craig Hallum lowered shares of Seagate Technology from a buy rating to a hold rating in a research note on Wednesday, May 2nd. Finally, Cfra reiterated a hold rating on shares of Seagate Technology in a research note on Tuesday, May 1st. Four research analysts have rated the stock with a sell rating, twenty have issued a hold rating, five have issued a buy rating and one has given a strong buy rating to the stock. Seagate Technology has an average rating of Hold and a consensus target price of $54.51.

STX opened at $58.10 on Monday. The stock has a market cap of $16.78 billion, a P/E ratio of 14.10, a price-to-earnings-growth ratio of 0.56 and a beta of 1.67. Seagate Technology has a fifty-two week low of $30.60 and a fifty-two week high of $62.70. The company has a current ratio of 1.72, a quick ratio of 1.39 and a debt-to-equity ratio of 3.17.

Seagate Technology (NASDAQ:STX) last released its quarterly earnings data on Tuesday, May 1st. The data storage provider reported $1.46 earnings per share for the quarter, topping the consensus estimate of $1.36 by $0.10. The firm had revenue of $2.80 billion for the quarter, compared to analyst estimates of $2.75 billion. Seagate Technology had a net margin of 7.76% and a return on equity of 105.43%. Seagate Technology’s quarterly revenue was up 4.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.10 earnings per share. sell-side analysts predict that Seagate Technology will post 5.34 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Thursday, July 5th. Shareholders of record on Wednesday, June 20th were paid a $0.63 dividend. The ex-dividend date of this dividend was Tuesday, June 19th. This represents a $2.52 annualized dividend and a dividend yield of 4.34%. Seagate Technology’s payout ratio is currently 61.17%.

In other Seagate Technology news, Director Edward J. Zander sold 23,618 shares of the firm’s stock in a transaction that occurred on Wednesday, May 9th. The shares were sold at an average price of $57.21, for a total value of $1,351,185.78. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Chairman Stephen J. Luczo sold 100,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 8th. The shares were sold at an average price of $56.01, for a total transaction of $5,601,000.00. The disclosure for this sale can be found here. Insiders sold 231,487 shares of company stock worth $13,323,746 in the last 90 days. 0.87% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Northern Trust Corp increased its stake in shares of Seagate Technology by 1.1% during the first quarter. Northern Trust Corp now owns 3,203,887 shares of the data storage provider’s stock valued at $187,492,000 after acquiring an additional 33,524 shares during the period. Schwab Charles Investment Management Inc. increased its stake in shares of Seagate Technology by 1.9% during the first quarter. Schwab Charles Investment Management Inc. now owns 1,172,074 shares of the data storage provider’s stock valued at $68,590,000 after acquiring an additional 21,686 shares during the period. Summit Trail Advisors LLC increased its stake in shares of Seagate Technology by 4,026.7% during the first quarter. Summit Trail Advisors LLC now owns 1,117,799 shares of the data storage provider’s stock valued at $1,118,000 after acquiring an additional 1,090,712 shares during the period. O Shaughnessy Asset Management LLC increased its stake in shares of Seagate Technology by 90.8% during the first quarter. O Shaughnessy Asset Management LLC now owns 1,086,825 shares of the data storage provider’s stock valued at $63,602,000 after acquiring an additional 517,277 shares during the period. Finally, Robeco Institutional Asset Management B.V. increased its stake in shares of Seagate Technology by 6.4% during the first quarter. Robeco Institutional Asset Management B.V. now owns 926,531 shares of the data storage provider’s stock valued at $54,311,000 after acquiring an additional 56,016 shares during the period. Institutional investors and hedge funds own 82.68% 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. The company manufactures and distributes hard disk drives, solid state drives and their related controllers, solid state hybrid drives, and storage subsystems. Its products are used in enterprise servers and storage systems applications; client compute applications, primarily for desktop and mobile computing; and client non-compute applications, including various end user devices, such as portable external storage systems, surveillance systems, network-attached storage, digital video recorders, and gaming consoles.

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