Seagate Technology Holdings plc (NASDAQ: STX) stock jumped 1.46% on Friday to $80.16 against a previous-day closing price of $79.01. With 1.17 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.02 million shares. During the session, the Computer Hardware company that operates in wider Technology sector, reached to the highest price of $80.66 whereas the lowest price it dropped to was $79.04. The 52-week range on STX shows that it touched its highest point at $117.67 and its lowest point at $67.36 during that stretch. It currently has a 1-year price target of $86.20. With its current market cap of 16.94 billion, STX has annualized dividend of $2.80 while the current yield stands at 3.49%. Beta for the stock currently stands at 1.10.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of STX was up-trending over the past week, with a rise of 1.88%, but this was up by 12.41% over a month. Three-month performance dropped to -4.45% while six-month performance fell -25.75%. The stock lost -11.35% in the past year, while it has lost -29.05% so far this year. A look at the trailing 12-month EPS for STX yields 7.33 with Next year EPS estimates of 8.83. For the next quarter, that number is 1.41. This implies an EPS growth rate of 41.60% for this year and 24.02% for next year. EPS is expected to grow by 12.79% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 45.50%.
Float and Shares Shorts:
At present, 218.00 million STX shares are outstanding with a float of 213.52 million shares on hand for trading. On Jul 14, 2022, short shares totaled 13.09 million, which was 6.23% higher than short shares on Jun 14, 2022. In addition to Dr. William David Mosley as the firm’s CEO & Director, Mr. Gianluca Romano serves as its Exec. VP & CFO.
Through their ownership of 83.08% of STX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.82% of STX, in contrast to 41.50% held by mutual funds. Shares owned by individuals account for 40.52%. As the largest shareholder in STX with 11.09% of the stake, The Vanguard Group, Inc. holds 23,817,418 shares worth 23,817,418. A second-largest stockholder of STX, ValueAct Capital Management LP, holds 13,437,070 shares, controlling over 6.25% of the firm’s shares. JPMorgan Investment Management, I is the third largest shareholder in STX, holding 10,297,291 shares or 4.79% stake. With a 2.80% stake in STX, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 6,023,960 shares are owned by the mutual fund manager. The Fidelity Low Priced Stock Fund, which owns about 2.32% of STX stock, is the second-largest Mutual Fund holder. It holds 4,976,397 shares valued at 355.51 million. Vanguard Mid Cap Index Fund holds 2.19% of the stake in STX, owning 4,699,276 shares worth 335.72 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 30, 2022, STX reported revenue of $2.63B and operating income of $361.00M. Over the past year, revenue came in at $11.66B while operating income stood at $1.96B. It generated $276.00M net income for the quarter, which came to $1.65B over the last twelve months. The EBITDA in the recently reported quarter was $474.00M and diluted EPS was $1.27. EBITDA for the full year was $2.38B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for STX since 26 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 15 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With STX analysts setting a high price target of $120.00 and a low target of $58.00, the average target price over the next 12 months is $86.86. Based on these targets, STX could surge 49.7% to reach the target high and fall by -27.64% to reach the target low. Reaching the average price target will result in a growth of 8.36% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. STX will report FY 2023 earnings on 07/20/2023. Analysts have provided yearly estimates in a range of $8.50 being high and $5.00 being low. For STX, this leads to a yearly average estimate of $7.11. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Seagate Technology Holdings plc surprised analysts by -$0.30 when it reported $1.59 EPS against a consensus estimate of $1.89. The surprise factor in the prior quarter was -$0.06. Based on analyst estimates, the high estimate for the next quarter is $1.54 and the low estimate is $1.33. The average estimate for the next quarter is thus $1.41.
Dividends & Yield:
In terms of dividends, STX has a current ratio of $2.8, which is $2.8 over the trailing 12-months, while a dividend of $2.59 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and STX currently yields $3.46. In the past year, STX’s dividend yield has been $3.46, but when looking at the stock over the past five years, its yield has been $4.6. Accordingly, STX has a current buyback yield of $10.69. This was $10.69 for the TTM, and it was $6.49 for the past five years.
Summary of Insider Activity:
Insiders traded STX stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 1,007 shares were bought while 351 shares were sold. The number of buy transactions has increased to 42 while that of sell transactions has risen to 64 over the past year. The total number of shares bought during that period was 296,161 while 4,224,748 shares were sold.