On 08 February, shares of Seagate Technology plc (NASDAQ:STX) closed higher after a volatile session. The shares accumulated 0.56 points or 1.26 percent at $45.02 with a light trade volume of 3.184 million shares. After opening the session at $43.99, the shares went as high as $45.04 and as low as $43.7104, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $12.8 billion and now has 285 million shares outstanding. Seagate Technology plc (STX) stock has gained 12.16 percent of market value in 21 trading days.
STX stock has a trailing 3-year beta of 1.68, 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 $6.82 a share in the trailing twelve months. The stock’s value has surged 16.66 percent year to date (YTD) against a decline of -9.14 percent in 12 month’s time. The company’s shares still trade -28.2 percent away from its 1-year high of $62.70 and 27.25 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.
Seagate Technology plc (STX) will probably climb 2.18 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $63 price as 12-month high target. This represents a whopping 39.94 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $41.5, which represents a return potential of -7.82 percent when compared to the closing price of the stock of $45.02 on Friday, February 08. The lowest price target for the stock is $32 — slightly more than -28.92 percent from STX’s current share price.
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. Investors will get their next glimpse of STX’s Q3 earnings on May 06. Analysts are forecasting revenue to suffer decline of -6.6 percent to $2.72B in the fiscal third quarter, while earnings are seen soaring by nearly -14.19 percent to $1.27 per share. It earned $1.7 per share, better than the $1.55, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.72B, in line with the $2.72B analysts expected. Earnings are estimated to increase by 126.3 percent this year, 2.39 percent next year and continue to increase by 5.56 percent annually for the next 5 years.
Let’s take a look at some insider activity at Seagate Technology plc (NASDAQ:STX) and see the pattern. The earliest insider trade took place on 02/08/2019. Valueact Capital Master Fund, gathered a total of 2.23 million shares of company at average share price of $44.9. The total for the purchase was set at $99.9 million. After this transaction, the account balance stood at 27.3 million shares. The stock grew 0.27 percent since that insider purchase. On 12/07/2018, Valueact Capital Master Fund,, , purchased 400 thousand shares at a price per share of $40.61. This added 16.24 million shares to the insider’s fortune and the stock saw a 10.86 percent rally in value since the news became public. This transaction left 27.3 million shares in the account.
On 12/03/2018, Director Luczo Stephen J performed a sale transaction worth $1.32 million. This sale at $44.16 each has eliminated 30 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 1.95 percent increase since the transaction was reported. The insider now is left with 1.42 million shares remaining in the account. Murphy James J, who performs the EVP, Sales & Marketing job, sold 13.66 thousand shares for $580.96 thousand. The disposal occurred on 11/30/2018 was priced at $42.53 per share. The share price soared 5.85 percent since the reporting date. Murphy James J now left with a stake of 20.96 thousand STX stock worth $943.75 thousand after the insider selling.
The stock is currently hovering around the first support level of $44.14. Below this, the next support is placed in the zone of $43.26. Till the time, the STX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 63.65 on daily chart, which may remain a cause for concern. If the price breaks below $43.26 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $45.47 mark may result into a pull-back move towards $45.92 level.
Shares of Seagate Technology plc (STX) are trading at a P/E ratio of 6.6 times earnings reported for the past 12 months. The industry STX operates in has an average P/E of 13.78. 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 1.13 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.75. 30.5 percent is the gross profit margin for Seagate Technology plc and operating margin sits at 16.4 percent. Along with this, the net profit margin is 14.8 percent.