Key Highlights
- Morgan Stanley upgraded its STX price target to $1,035 from $767, reaffirming its Overweight rating
- The company delivered Q3 EPS of $4.10, surpassing consensus by $0.59, while revenue reached $3.11 billion, marking a 44.1% year-over-year increase
- Several Wall Street firms raised their targets, including JPMorgan to $920 and Barclays to $1,000
- Management elevated Q4 2026 EPS outlook to $4.80–$5.20 and increased long-term revenue growth expectations to a minimum of 20% annually
- The company has secured nearline capacity commitments extending through 2027, fueled by cloud infrastructure and AI datacenter expansion
Seagate Technology (STX) began Monday’s session at $931.04, climbing 7.25% as momentum from robust quarterly results and upgraded analyst outlooks continued to propel the shares. The stock’s trajectory has been remarkable, rising from a 52-week low of $124.63 to a peak of $966.80.
Seagate Technology Holdings plc, STX
Morgan Stanley elevated its price objective to $1,035 from $767, while maintaining its Overweight stance. This adjustment comes amid a broader wave of upward revisions from leading investment banks.
JPMorgan increased its price target from $775 to $920 with an Overweight rating intact. Barclays pushed its target to $1,000 from $750, while TD Cowen boosted expectations to $850 from $500. China Renaissance established a $983 target. Among 25 covering analysts, the consensus rating stands at Moderate Buy, with an average price objective of $820.63.
This optimistic outlook stems from Seagate’s fiscal third-quarter performance announced on April 28. The storage solutions provider reported earnings per share of $4.10, significantly exceeding the Street’s $3.51 forecast. Revenue totaled $3.11 billion, beating the $2.96 billion estimate and reflecting a 44.1% surge compared to the prior-year period.
To illustrate the improvement trajectory, Seagate generated just $1.90 in EPS during the corresponding quarter last year — effectively more than doubling profitability within twelve months.
Forward Projections and Revenue Targets
For the fourth quarter of fiscal 2026, Seagate provided EPS guidance ranging from $4.80 to $5.20. The analyst community anticipates full-year earnings per share of $14.14. Additionally, management raised its long-term annual revenue growth forecast to at least 20%.
Seagate indicated that the majority of its nearline storage manufacturing capacity has been committed through 2027, powered by robust demand from hyperscale cloud providers and artificial intelligence infrastructure deployments. The company’s free cash flow generation has accelerated, a development that Wall Street has recognized favorably.
In a recent corporate action, Seagate announced plans to redeem all remaining 3.50% Exchangeable Senior Notes scheduled to mature in 2028 — a financial restructuring initiative that has been well-received by the investment community.
The company declared a quarterly dividend of $0.74 per share, payable July 7 to shareholders of record as of June 24. This translates to an annual dividend of $2.96, yielding approximately 0.3% at current price levels.
Executive Transactions and Ownership Structure
On June 10, two executive vice presidents executed stock sales through pre-established 10b5-1 trading arrangements. John Morris divested 574 shares at $821.66 per share, while Ban Seng Teh sold 663 shares at $821.86. Over the past ninety days, company insiders have collectively sold approximately $112.7 million in stock, though insider ownership represents just 0.79% of total shares outstanding.
Institutional investors command 92.87% of STX shares. Vanguard Group leads with 28.1 million shares worth $6.64 billion. State Street, Morgan Stanley, Geode Capital Management, and Arrowstreet Capital all expanded their holdings during the fourth quarter.
Entropy Technologies reduced its position by 48.8% in Q4, maintaining a remaining stake valued at approximately $5.16 million as of quarter-end.
Technical indicators show STX’s 50-day moving average at $709.54, with the 200-day moving average at $477.38 — both substantially below current trading levels.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
