Seagate Technology (STX) Downgraded to Hold at Zacks Investment Research

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Seagate Technology (NASDAQ:STX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.

According to Zacks, “Seagate 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 from peers might lead to pricing pressure. Further, customer concentration remains an overhang.”

Several other brokerages also recently weighed in on STX. ValuEngine downgraded shares of Seagate Technology from a “strong-buy” rating to a “buy” rating in a report on Monday, April 23rd. BidaskClub downgraded shares of Seagate Technology from a “strong-buy” rating to a “buy” rating in a report on Wednesday, July 25th. Goldman Sachs Group downgraded shares of Seagate Technology from a “neutral” rating to a “sell” rating and cut their price target for the stock from $50.00 to $44.00 in a report on Thursday, August 9th. Cfra reiterated a “hold” rating on shares of Seagate Technology in a report on Tuesday, May 1st. Finally, Guggenheim reiterated a “hold” rating on shares of Seagate Technology in a report on Tuesday, May 1st. Four investment analysts have rated the stock with a sell rating, nineteen have assigned a hold rating and six have assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $53.77.

Shares of STX traded up $0.61 during mid-day trading on Tuesday, hitting $55.15. 147,874 shares of the company traded hands, compared to its average volume of 3,788,372. Seagate Technology has a 1-year low of $30.60 and a 1-year high of $62.70. The company has a quick ratio of 1.02, a current ratio of 1.35 and a debt-to-equity ratio of 2.59. The company has a market cap of $15.58 billion, a P/E ratio of 10.03, a price-to-earnings-growth ratio of 0.66 and a beta of 1.74.

Seagate Technology (NASDAQ:STX) last issued its quarterly earnings results on Monday, July 30th. The data storage provider reported $1.62 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.45 by $0.17. Seagate Technology had a net margin of 10.57% and a return on equity of 120.71%. The company had revenue of $2.84 billion for the quarter, compared to the consensus estimate of $2.80 billion. During the same quarter in the prior year, the company earned $0.65 EPS. Seagate Technology’s quarterly revenue was up 17.8% on a year-over-year basis. research analysts anticipate that Seagate Technology will post 6.23 EPS for the current fiscal year.

In other news, Director Holdings L.P. Valueact acquired 500,000 shares of the company’s stock in a transaction dated Wednesday, August 15th. The shares were acquired at an average price of $52.78 per share, with a total value of $26,390,000.00. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Kathryn R. Scolnick sold 10,577 shares of the stock in a transaction that occurred on Thursday, August 16th. The shares were sold at an average price of $53.12, for a total value of $561,850.24. Following the transaction, the chief financial officer now owns 759 shares in the company, valued at approximately $40,318.08. The disclosure for this sale can be found here. Insiders have bought a total of 6,184,448 shares of company stock worth $320,875,365 in the last ninety days. Corporate insiders own 0.87% of the company’s stock.

Several large investors have recently made changes to their positions in STX. Renaissance Technologies LLC purchased a new position in shares of Seagate Technology during the 4th quarter valued at approximately $1,029,000. Meag Munich Ergo Kapitalanlagegesellschaft MBH lifted its holdings in Seagate Technology by 683.9% in the 1st quarter. Meag Munich Ergo Kapitalanlagegesellschaft MBH now owns 108,055 shares of the data storage provider’s stock valued at $6,121,000 after purchasing an additional 94,271 shares in the last quarter. Dean Capital Investments Management LLC purchased a new position in Seagate Technology in the 1st quarter valued at $209,000. Wedbush Securities Inc. lifted its holdings in Seagate Technology by 11.7% in the 1st quarter. Wedbush Securities Inc. now owns 11,785 shares of the data storage provider’s stock valued at $690,000 after purchasing an additional 1,231 shares in the last quarter. Finally, Private Advisory Group LLC purchased a new position in Seagate Technology in the 1st quarter valued at $324,000. Hedge funds and other institutional investors own 82.57% 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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