Seagate Technology plc (STX): What’s Behind The Signals?

A handful of technical analysis tools are suggesting that Seagate Technology plc (NASDAQ:STX) overall gets 80% Buy rating. The stock is also flashing a Buy from the Barchart TrendSpotter trading system. Traders hoping to speculate on the STX’s short-term trajectory should know that short terms indicators for the stock averaged 80% Buy with an average daily trading volume over the past 20 days at 4399185 shares. STX stock has overall a 1% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 4196030 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 4251437 shares, is 33% Buy on the basis of long term indicators.

The share price is currently staying around the first support level of $45.45. Below this, the next support is placed in the zone of $45.17. Till the time, the STX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 65.37 on daily chart, which may remain a cause for concern. If the price breaks below $45.17 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $46.05 mark may result into a pull-back move towards $46.37 level.

Seagate Technology plc (STX) is projected to climb by 0.57 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 37.74 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 -9.27 percent when compared to the closing price of the stock of $45.74 on Wednesday, February 13. The lowest price target for the stock is $32 — slightly more than -30.04 percent from STX’s current share price.

Here’s a rundown of insider trading activity for sense of Seagate Technology plc (NASDAQ:STX). 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 1.87 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 12.63 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 3.58 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 7.55 percent since the reporting date. Murphy James J now left with a stake of 20.96 thousand STX stock worth $958.85 thousand after the insider selling.

STX shares accumulated 0.35 points or 0.77 percent on Wednesday to $45.74 with a light trade volume of 2.659 million shares. After opening the session at $45.65, the shares went as high as $46.08 and as low as $45.48, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $13 billion and now has 285 million shares outstanding. Seagate Technology plc (STX) stock has gained 14.01 percent of market value in 21 trading days.

Analysts at Maxim Group lifted target price for shares of Seagate Technology plc (NASDAQ:STX) but repeated their Hold recommendation for the stock in their opinion released on February 05. The price target has been raised from $51 to $49. Maxim Group analysts again handed out a Hold rating to STX stock but they lifted target price for the shares in a flash note to investors on November 07. The price target has been raised from $54 to $51. Maxim Group, analysts launched coverage of STX stock with a Hold rating, according to their flash note to investors on November 07. Analysts at Susquehanna downgraded the stock to a Negative call from its previous Neutral stance, in a research note that dated back to October 23.

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 18.53 percent year to date (YTD) against a decline of -6.98 percent in 12 month’s time. The company’s shares still trade -27.05 percent away from its 1-year high of $62.70 and 29.28 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.

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 15.7. 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 1.15 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.79. 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.

STX will be declaring its Q3 financial results on May 06. Analysts are forecasting revenue to suffer decline of -6.6 percent to $2.72B in the next fiscal quarter, while earnings are seen soaring by nearly -14.19 percent to $1.27 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. In last reported earnings results, 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.