Thanks to a 0.09 sell/buy ratio, Seagate Technology plc (NASDAQ:STX) insider buying over the last three months picked up more than selling did. When insiders buy more shares of their company stock, it’s generally for one reason only: With inside knowledge of their company’s prospects, they expect the stock price to rise soon. STX recorded 14 sales on the open market in the last three months. They sold nearly 84,951 shares while purchases amounted to 895,213 shares that period. Looking even further back to 12 months, corporate insiders offloaded 1,003,082 shares when buyers snapped up 5,138,240 shares. The 12-month’s totals signify about a 0.2-to-1 sell/buy ratio.
Valueact Capital Master Fund, gathered a total of 400 thousand shares of Seagate Technology plc (STX) at average share price of $40.61. This insider trade in the company took place on 12/07/2018. The total for the purchase was set at $16.24 million. After this transaction, the account balance stood at 27.3 million shares. The stock lost -0.47 percent since that insider purchase. On 12/03/2018, Luczo Stephen J, Director, sold 30 thousand shares at a price per share of $44.16. This removed 1.32 million shares from the insider’s fortune and the stock saw a -8.47 percent retreat in value since the news became public. This transaction left 1.42 million shares in the Director account.
On 11/30/2018, EVP, Sales & Marketing Murphy James J performed a sale transaction worth $580.96 thousand. This sale at $42.53 each has eliminated 13.66 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -4.96 percent decrease since the transaction was reported. The insider now is left with 20.96 thousand shares remaining in the account. Valueact Capital Master Fund,, who performs the job, bought 124.13 thousand shares for $5.21 million. The acquisition occurred on 11/30/2018 was priced at $41.95 per share. The share price plunged -3.65 percent since the reporting date. Valueact Capital Master Fund, now left with a stake of 26.89 million STX stock worth $1079.44 million after the insider buying.
The 12-month median price target for Seagate Technology plc (STX) assigned by the analysts stands at $46, which represents a return potential of 14.6 percent when compared to the closing price of the stock of $40.14 on Wednesday, January 09. The lowest price target for the stock is $32 — slightly more than -20.28 percent from STX’s current share price. The stock will probably climb 20.18 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $65price as 12-month high target. This represents a whopping 61.93 percent increase from where shares are trading today.
On momentum oscillators front, ‘RSI’ has touched 52.58 on daily chart, which may remain a cause for concern. If the price breaks below $38.48 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $40.9 mark may result into a pull-back move towards $41.66 level. The stock is currently hovering around the first support level of $39.31. Below this, the next support is placed in the zone of $38.48. Till the time, the STX stock trades above this level, bulls have nothing to fear.
Shares of Seagate Technology plc (STX) are trading at a P/E ratio of 13.1 times earnings reported for the past 12 months. The industry STX operates in has an average P/E of 16.34. Its P/E ratio went as low as 9.15X and as high as 29.26 over the 5-year span. Further, it is sporting a 1.02 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.81. 30.7 percent is the gross profit margin for Seagate Technology plc and operating margin sits at 16.3 percent. Along with this, the net profit margin is 12.6 percent.
On 9th of January, Seagate Technology plc (NASDAQ:STX) shares ended higher after a volatile session. The shares accumulated 1 points or 2.55 percent at $40.14 with a light trade volume of 3.952 million shares. After opening the session at $39.24, the shares went as high as $40.83 and as low as $39.24, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $11.8 billion and now has 293.26 million shares outstanding. Seagate Technology plc (STX) stock has gained 0.6 percent of market value in 21 trading days.
In last reported earnings results, STX earned $1.7 per share, better than the $1.55, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.99B, better than the $2.96B analysts expected. Earnings are estimated to increase by 126.3 percent this year, 1.42 percent next year and continue to increase by 6.06 percent annually for the next 5 years. Investors will get their next glimpse of STX’s Q2 earnings on February 04. Analysts are forecasting revenue to suffer decline of -6.3 percent to $2.73B in the next fiscal quarter, while earnings are seen soaring by nearly -12.84 percent to $1.29 per share. History has shown that shares in Seagate Technology plc have gone down on 19 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings.
STX stock has a trailing 3-year beta of 1.6, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $6.75 a share in the trailing twelve months. The stock’s value has surged 4.02 percent year to date (YTD) against a decline of -12.74 percent in 12 month’s time. The company’s shares still trade -35.98 percent away from its 1-year high of $62.70 and 13.45 percent up from 52-week low of $35.38. The average consensus rating on the company is 2.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.