In a recent move, William D. Mosley, the Chief Executive Officer of Seagate Technology Holdings plc (NASDAQ:STX), has sold a significant number of shares in the company. According to the latest filings, Mosley parted with a total of 20,000 ordinary shares at varying prices, resulting in a total transaction value exceeding $2.15 million.
The series of transactions, all executed on October 1, 2024, saw Mosley sell shares at prices ranging from $107.2807 to $108.658. The first batch of 7,071 shares was sold at a weighted average price of $107.2807, while the second and largest sale of 12,829 shares reached an average of $107.8955. The final sale, consisting of 100 shares, achieved a slightly higher weighted average price of $108.658.
Investors should note that these sales were conducted under a pre-arranged trading plan, known as Rule 10b5-1, which Mosley had adopted on May 6, 2024. This type of plan allows company insiders to establish predetermined trading arrangements for selling stocks at a time when they are not in possession of material non-public information.
Following the transactions, the CEO still holds a substantial number of shares in Seagate Technology Holdings, amounting to 648,616 ordinary shares. The sales represent a partial divestment by Mosley, yet he maintains a significant stake in the company, indicating a continued vested interest in the company's performance.
Seagate Technology Holdings plc, headquartered in Singapore, is a prominent player in the computer storage devices industry. The company's stock trades on the NASDAQ under the ticker symbol STX, and it has a history of adapting to the evolving demands of data storage technology.
Investors often keep a close eye on insider transactions as they can provide valuable insights into the company's health and the confidence level of its top executives. Mosley's recent stock sale is no exception and will likely be interpreted by the market as a strategic financial move rather than a commentary on the company's future prospects.
In other recent news, Seagate Technology has been the focus of several analyst reviews and company developments. The company's earnings per share for the June quarter exceeded expectations, reaching $1.05, with a forecast of over $2.1 billion in revenue and an EPS of $1.40 for the first fiscal quarter of 2025. There were also changes in the Board of Directors, with Director Robert A. Bruggeworth announcing his decision not to stand for re-election at the upcoming Annual General Meeting of Shareholders.
Several financial institutions have adjusted their outlook on Seagate. BofA Securities, Loop Capital, and Morgan Stanley have all increased their price targets, citing potential revenue and margin recovery, strong hard disk drive supply and demand dynamics, and significant growth potential. Similarly, Rosenblatt Securities raised their target for Seagate shares to $125, following a reported surge in demand from Cloud Service Providers and the Video & Imaging Application sector.
These developments are part of a broader trend of positive attention for Seagate from various financial firms. Amid expectations of strong hard disk drive supply and demand dynamics, Morgan Stanley raised its price target for Seagate to $133. Loop Capital also increased its stock price target for Seagate to $135, maintaining a Buy rating based on the belief of stronger-than-anticipated earnings. These updates underscore the financial industry's confidence in Seagate's strategic direction and potential for future financial performance.
InvestingPro Insights
To provide additional context to CEO William D. Mosley's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Seagate Technology Holdings plc (NASDAQ:STX).
According to InvestingPro data, Seagate's market capitalization stands at $22.92 billion, reflecting its significant presence in the Technology Hardware, Storage & Peripherals industry. The company's stock has shown remarkable performance, with a 67.83% total return over the past year, and it's currently trading near its 52-week high at 95.59% of that peak.
One InvestingPro Tip highlights that Seagate has maintained dividend payments for 14 consecutive years, demonstrating a commitment to shareholder returns. This is particularly noteworthy given the company's current dividend yield of 2.6%, which may appeal to income-focused investors.
Another relevant InvestingPro Tip indicates that net income is expected to grow this year. This projection aligns with the company's recent quarterly revenue growth of 17.79%, suggesting a potential turnaround from the -11.28% revenue decline observed over the last twelve months.
It's worth noting that Seagate's P/E ratio stands at 68.24, which could be considered high. However, the PEG ratio of 0.42 suggests that the stock might be undervalued relative to its expected earnings growth.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 13 more InvestingPro Tips available for Seagate Technology Holdings, which could provide valuable guidance for those looking to delve deeper into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.