Key Highlights
- Morgan Stanley elevated its STX price target to $1,035 from $767, keeping an Overweight rating
- Third-quarter earnings per share reached $4.10, surpassing consensus by $0.59, while revenue hit $3.11 billion—a 44.1% annual increase
- Several Wall Street firms upgraded targets, including JPMorgan to $920 and Barclays to $1,000
- The company increased Q4 2026 EPS outlook to $4.80–$5.20 and boosted long-term revenue growth projections to a minimum of 20% annually
- Nearline storage supply is essentially locked through 2027 due to cloud infrastructure and AI datacenter requirements
Seagate Technology (STX) shares launched Monday’s session at $931.04, gaining 7.25% as momentum from stellar earnings and analyst optimism continued building. The stock has rocketed from its 52-week bottom of $124.63 to a peak of $966.80.
Seagate Technology Holdings plc, STX
Morgan Stanley’s analysts pushed their price objective to $1,035—a substantial jump from the previous $767—while reaffirming their Overweight stance. This upgrade comes alongside a flurry of positive revisions from Wall Street heavyweights.
JPMorgan increased its forecast from $775 to $920, maintaining its Overweight recommendation. Barclays moved to $1,000 from $750, while TD Cowen adjusted upward to $850 from $500. China Renaissance established a $983 target. Across 25 covering analysts, the consensus leans Moderate Buy with a mean price objective of $820.63.
This optimistic wave followed Seagate’s April 28 third-quarter financial disclosure. The data storage manufacturer delivered $4.10 in earnings per share, handily beating the Street’s $3.51 expectation. Revenue totaled $3.11 billion, exceeding projections of $2.96 billion and marking a 44.1% surge versus the prior-year period.
To put this in perspective, the company generated just $1.90 per share in the comparable quarter last year—earnings have more than doubled over 12 months.
Forward Guidance and Expansion Trajectory
For the fourth quarter of 2026, Seagate projected earnings per share between $4.80 and $5.20. Wall Street analysts collectively anticipate full-year EPS of $14.14. Management also elevated its long-term annual revenue expansion goal to no less than 20%.
Seagate indicated that the majority of its nearline storage production capacity has been committed through 2027, fueled by requirements from major cloud service providers and artificial intelligence infrastructure operators. Free cash flow generation has been trending upward, which market observers view as an encouraging indicator.
The corporation recently disclosed plans to redeem all remaining 3.50% Exchangeable Senior Notes maturing in 2028—a capital structure adjustment that has been received favorably by shareholders.
A quarterly cash distribution of $0.74 per share is scheduled for July 7, targeting shareholders of record as of June 24. This translates to an annualized dividend of $2.96, yielding approximately 0.3%.
Executive Transactions and Institutional Ownership
Two executive vice presidents executed stock sales on June 10 through predetermined 10b5-1 trading arrangements. John Morris divested 574 shares at $821.66 each, while Ban Seng Teh sold 663 shares at $821.86. Corporate insiders have collectively disposed of roughly $112.7 million in shares during the trailing 90 days, although insider ownership represents merely 0.79% of total outstanding shares.
Institutional investors command 92.87% of STX equity. Vanguard controls 28.1 million shares worth $6.64 billion. State Street, Morgan Stanley, Geode Capital, and Arrowstreet all expanded their holdings during the fourth quarter.
Entropy Technologies reduced its stake by 48.8% in Q4, though it maintained a position valued at approximately $5.16 million at quarter’s conclusion.
STX’s 50-day moving average sits at $709.54, with the 200-day average at $477.38—both substantially below current trading levels.
