In a recent transaction, EVP & Chief Commercial Officer of Seagate Technology Holdings plc (NASDAQ:STX), Teh Ban Seng, sold 10,117 ordinary shares of the company at an average price of $110.00, netting a total of $1,112,870. The sale occurred on July 24, 2024, and was disclosed in a regulatory filing with the Securities and Exchange Commission.
On the same date, Teh Ban Seng also acquired 10,117 ordinary shares at a price of $68.83 per share, amounting to a total of $696,353. These shares were acquired in accordance with the company's equity incentive plan, which is designed to align the interests of the company’s executives with those of its shareholders.
The transactions have resulted in a change in Teh Ban Seng’s holdings in Seagate Technology Holdings plc. Following the sale, the executive's ownership in the company decreased to 5,387 ordinary shares. Prior to these transactions, Teh Ban Seng had exercised options to acquire shares, as indicated in the footnotes of the filing. These options, granted under the Seagate Technology Holdings plc 2022 Equity Incentive Plan, are subject to a four-year vesting schedule.
It is noteworthy that the sale was conducted under a Rule 10b5-1 trading plan, which was adopted on January 29, 2024. This rule allows company insiders to set up a predetermined plan to sell company stocks in a way that avoids accusations of insider trading.
Investors often monitor insider buying and selling as it can provide insights into how the company’s top executives view the stock's value and future performance. However, such transactions do not always indicate a change in company fundamentals or management’s long-term outlook.
In other recent news, Seagate Technology has been making waves in the investment community with several financial firms adjusting their outlooks based on the company's recent performance. BofA Securities raised its price target on Seagate to $125 from the previous $110, citing potential revenue and margin recovery from trough levels. The firm maintained a "Buy" rating following the company's announcement of a strong performance for the June quarter, with earnings per share (EPS) of $1.05 surpassing company guidance.
Seagate's revenue and EPS guidance for the first fiscal quarter of 2025 also exceeded expectations, forecasting over $2.1 billion in revenue and an EPS of $1.40. Other firms, including Loop Capital, Morgan Stanley, and Rosenblatt Securities, also increased their price targets for Seagate, indicating potential for significant growth in the long term.
Morgan Stanley's revised forecast suggests a significant 33-40% upside potential for Seagate's shares compared to the Street's earnings per share (EPS) estimates for fiscal years 2025 and 2026. Rosenblatt Securities attributed Seagate's Non-GAAP gross margin growth to strategic manufacturing adjustments, indicating a strong potential for earnings leverage. Meanwhile, Benchmark maintained its Hold rating on Seagate, citing better-than-expected results and an optimistic forecast for the first quarter of fiscal year 2025.
These recent developments reflect the positive outlook from various analysts on Seagate's performance and potential for growth.
InvestingPro Insights
As Seagate Technology Holdings plc (NASDAQ:STX) continues to navigate the market, recent insider transactions by EVP & Chief Commercial Officer Teh Ban Seng have caught the attention of investors. To provide further context to these transactions, certain metrics and insights from InvestingPro can shed light on the company's current financial health and future prospects.
InvestingPro Data indicates a mixed financial landscape for Seagate. The company's Market Cap stands at 21.69B USD, reflecting its significant presence in the technology sector. Despite a challenging past with Revenue Growth at -11.28% over the last twelve months as of Q4 2024, the Quarterly Revenue Growth shows a promising uptick of 17.79% in Q4 2024, suggesting potential recovery or seasonal strength. Moreover, the company boasts a robust 3 Month Price Total Return of 21.3%, highlighting recent positive investor sentiment.
Turning to InvestingPro Tips, it's important to note that analysts have revised their earnings upwards for the upcoming period for Seagate, which could signal confidence in the company's ability to grow its net income and sales this year. Additionally, Seagate is recognized as a prominent player in the Technology Hardware, Storage & Peripherals industry, which could be a key factor in its resilience and potential growth.
Investors considering Seagate Technology Holdings plc for their portfolio may find additional insights by exploring the full range of 19 InvestingPro Tips available for STX at https://www.investing.com/pro/STX. For those looking to delve deeper, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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