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Based in Livonia, Michigan, Seagate Technology Holdings plc (STX) provides data storage technology and infrastructure solutions. Valued at a market cap of $21.9 billion, the company offers mass-capacity storage products, including hard disk drives (HDDs), SSD (solid state drive), and solid-state hybrid drives (SSHD), among others.
Companies valued at $10 billion or more are generally described as “large-cap” stocks, and Seagate Technology fits this criterion perfectly. The company is the second-largest manufacturer of hard disk drives (HDDs) in the U.S. and benefits from an industry-leading vertically-integrated operation with internal control over most of its key component suppliers.
Shares of STX are trading 8.3% below their 52-week high of $113.57, recorded on Jul. 24. The computer hardware manufacturer has declined 1.8% over the past three months, lagging behind the broader Nasdaq Composite’s ($NASX) 1.7% gain over the same time frame.
However, in the longer term, STX stock is up nearly 22% on a YTD basis, surpassing NASX’s 20% gains. Moreover, shares of STX have rallied 60.5% over the past 52 weeks, significantly outperforming NASX’s 33.8% returns over the same time frame.
To confirm its bullish trend, STX has been trading above its 200-day moving average since last year. It has remained mostly above its 50-day moving average during the period despite recent fluctuations since August.
Shares of STX closed up more than 4% following its Q4 earnings release on Jul. 23 due to a year-over-year increase in revenues and earnings while exceeding Wall Street estimates. This was primarily driven by 46% annual growth in its mass capacity revenues and significant growth in its nearline cloud revenues fueled by stronger global cloud demand, which the company expects to benefit from in fiscal 2025 as well.
STX has lagged behind its rival, Western Digital Corporation’s (WDC) nearly 26% gains on a YTD basis but has outpaced WDC’s 44.5% returns over the past 52 weeks.
Despite STX outperforming the broader market over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 20 analysts covering the stock, and the mean price target of $118.44 suggests a premium of 13.8% to its current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
