Seagate Technology, a leading data storage provider, has recently announced its quarterly earnings data on Thursday, April 20th. The report showed that the company had earned ($0.28) per share for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.49). Moreover, the company’s revenue for the quarter was $1.86 billion, compared to analysts’ expectations of $1.98 billion.
These results have raised concerns among investors and financial analysts who are wondering what may have caused this decline in business performance. In addition, Seagate Technology had a negative return on equity of 69.08% and a negative net margin of 1.91%, further indicating the problems faced by the company during this quarter.
Seagate Technology’s revenue for the quarter was down 33.6% compared to the same period last year when it had posted an EPS (earnings per share) of $1.65. While some may argue that this was due to unforeseen circumstances such as COVID-19 pandemic restrictions affecting businesses worldwide at this time last year, others believe that Seagate Technologies may be losing its competitive edge in a rapidly evolving industry.
However, according to recent news reports, SVP Katherine Schuelke has sold 3,487 shares of Seagate Technology stock in a transaction on Friday, May 26th at an average price of $62.09 totaling $216,507.83.The senior vice president now directly owns 28,658 shares of STX worth approximately $1,779,375.22.
The sale was disclosed in a filing with the Securities & Exchange Commission which shed light on how much ownership is left within corporate insiders – only about 1% currently remains owned by them amid recent uncertainties weighed into customer supply and product scarcity issues throughout upstream channel partners.
Despite these challenges faced by Seagate Technology during this past quarter, the stock opened at $61.57 on Thursday, and the company still has a market cap of around $12.71 billion, while maintaining a low long-term debt to equity ratio and regular dividends to shareholders.
Moreover, the Seagate brand has always been synonymous with quality storage products for both consumer and enterprise-level needs for decades. While it may be experiencing some temporary difficulties in particular areas, it is likely that the company will soon recover and continue its legacy as an industry leader.
In conclusion, Seagate Technology’s last quarterly earnings report may have disappointed many shareholders and analysts regarding its revenue and EPS performance compared to the previous year. Nevertheless, other data such as insider selling percentages seems not to support all concern trends within STX stock activity as concerns arise from recent supply issues and scarcity impacting customer shipments throughout upstream channels. Despite these muted variables, one should consider holding their shares or even acquiring more in hopes of future stability for Seagate Technology within the tech infrastructure industry.
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Seagate Technology’s 2023 Earnings Forecast Downgraded Amid Economic Woes
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”STX” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Seagate Technology Holdings plc, a leading data storage provider, has recently experienced a downgrade in its earnings forecast for the year 2023. Analysts at Northland Capmk have lowered their previous forecast of ($0.32) to earnings per share of ($0.48). This decrease in earnings is mainly due to the economic woes faced by the company. This downgrade comes as no surprise since other equities research analysts have also commented on Seagate Technology’s stock in recent times.
Northland Securities and Credit Suisse Group both cut their price targets on the shares of Seagate Technology, while Bank of America followed suit by reducing their price target on June 8th. On April 21st, Evercore ISI and Wedbush also reduced their price objectives further. The consensus rating on Bloomberg for the company is “Hold,” with two investment analysts giving a sell rating.
Despite this downturn, Seagate Technology has announced that they will be paying out a quarterly dividend to shareholders on Wednesday, July 5th. Investors who are recorded as owners of shares on June 21st will receive $0.70 per share in dividends. The ex-dividend date for this dividend was Tuesday, June 20th.
Seagate Technology has been facing tough competition from its peers recently, and investors seem cautious about investing in this stock at present time given these bleak outlooks coupled with decreasing analyst forecasts.
In conclusion, while Seagate Technology continues to remain an industry leader in data storage solutions, it’s important to note that economic headwinds may impact its bottom line moving forward. Investors should be wary and stay vigilant when it comes to investing in this stock until more positive market trends emerge.
