STX - Seagate Technology plc

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
40.23
+1.50 (+3.87%)
At close: 4:00PM EST
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Previous Close38.73
Open39.08
Bid39.80 x 1100
Ask40.45 x 1000
Day's Range38.84 - 40.27
52 Week Range35.38 - 62.70
Volume3,961,807
Avg. Volume4,363,116
Market Cap11.514B
Beta (3Y Monthly)2.10
PE Ratio (TTM)8.09
EPS (TTM)4.97
Earnings DateFeb 4, 2019
Forward Dividend & Yield2.52 (6.51%)
Ex-Dividend Date2018-12-18
1y Target Est46.95
Trade prices are not sourced from all markets
  • InvestorPlace4 days ago

    Sure Western Digital Is Struggling, but WDC Stock Looks Like a Good Buy

    Western Digital (NASDAQ:WDC) had a rotten 2018. WDC stock lost more than half its value, plunging 53.5% for the year. That made it the seventh-worst performer in the entire S&P 500. This year is not off to much better of a start. WDC is up just 2% so far, compared to far bigger gains for the market and tech stocks in particular. It's not hard to see why Western Digital stock has crashed. The company's hard disk division continues to fade in importance, while the flash memory business is facing cyclical pressures and strong competition. But at 6x earnings, there has to be a bullish case for WDC stock here, right? Let's look at the optimistic and pessimistic views on Western Digital stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy as the Dollar Weakens ### The Case Against WDC Stock The bearish case on Western Digital is pretty simple. The company dominates in the traditional hard disk drive "HDD" market, but has far less market share in the increasingly popular solid state drive "SSD" category. This is a major problem, as Western Digital is far more profitable in the HDD market. For now, HDD drives still have a major cost advantage versus SSD. But the price of SSD continues to plummet. SSD is more attractive as it has the advantages of using no moving parts, consuming less power, and taking up less space. As HDD's lower price becomes less and less of a factor, SSD will gradually take over its remaining applications. In HDD, it's just Western Digital and Seagate (NASDAQ:STX) making up more than 80% of the market. Over in SSD, it is far more competitive. Samsung is the leading player. However, no one has more than 25% market share, and there are more than a dozen active competitors. Western Digital made its Sandisk acquisition to try to muscle into the SSD space. But so far, it has not shown any sort of cost or technological edge that would enable it to earn consistent higher profit margins, as it has been able to do in HDD. As the market continues to shift from HDD to SDD, Western Digital's profits will decline as it loses its high margin business and ends up fighting a price war with Samsung and others in the SDD arena. ### The Case for WDC Stock Bears argue that the erosion in the HDD market combined with too much competition in SSD will doom Western Digital stock. On top of that, it appears the cycle has turned downward for memory as well. In the past, down cycles have led to huge erosions in profit margins for the storage players. Bulls can credibly respond, however, that this time will be different. Now, unlike in the past, memory demand is growing much more slowly. This limits how far the industry can get out of whack from a supply/demand standpoint this time around. Even assuming profits are going to drop from both HDD and SSD, how far realistically could they fall? The company, backing out one-time items, is trading around 5x trailing earnings and under 6x forward earnings. With earnings in the $6/share area, even a moderate earnings shortfall hardly makes WDC stock look expensive at $37. On an EBITDA basis, the company is selling for under 4x. You rarely see companies sell for under 5x EV/EBITDA - or 6x earnings for that matter - unless the business is dying. While HDD is fading, it won't fully go away all that soon, and Western Digital has a defensible position in SSD as well, even if it isn't as profitable. ### WDC Stock's Dividend: Can You Trust It? While it didn't matter much when Western Digital traded up at $100, the dividend has now become very interesting. WDC stock offers $2/year (50 cents per quarter) in dividends. When WDC stock was riding high, that amounted to just a 2% yield. With WDC stock now under $40, however, the dividend yield is greater than 5%. It's hard to find tech companies that will pay you that well to hold their shares. However, not all is well with the dividend. Investment bank Evercore downgraded WDC stock to underperform earlier this week. WDC stock got mauled following the downgrade as Evercore didn't just speak negatively of the company's outlook, it specifically warned about a dividend cut. Evercore suggested that the company's free cash flow of just $2.35/share for this year barely covers the $2.00 dividend obligation. Combined with $6.5 billion in debt after factoring out cash, Evercore's analyst suggested that there was "clear risk" to the current dividend payout. For what it's worth, Evercore also cut its price target to just $30, suggesting another 20% downside from here. ### WDC Stock Verdict It's understandable why the market has punished Western Digital stock so dramatically. The company's cash cow traditional hard disk business is in steady decline. Over time, it will become obsolete. Western Digital wisely made a big move into flash memory to reinvent itself while it still has strong cash flows. Unfortunately, the SSD market is currently on a downswing, which will limit Western Digital's profits over the next few quarters. On the balance, however, it's easier to side with the bullish arguments. Western Digital clearly still makes a ton of money. Look at the forward PE ratio of 6 even with 2019 shaping up to be an off year. When the cycle turns back up, it's hard to imagine that Western Digital can't get back to at least an 8x or 9x PE ratio, which should put the stock at $50 or higher. On top of that, you have the strong dividend (though it could be cut) and a share buyback program to support the stock price. WDC stock is clearly a falling knife at this point. But for the brave, this entry point could lead to strong returns over the next 12 to 24 months. At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post Sure Western Digital Is Struggling, but WDC Stock Looks Like a Good Buy appeared first on InvestorPlace.

  • Will Western Digital Cut Its Dividend in 2019?
    Motley Fool5 days ago

    Will Western Digital Cut Its Dividend in 2019?

    An analyst’s bleak warning about its 5% dividend seems premature.

  • Now Might Be the Time to Jump Ship on Seagate
    Schaeffer's Investment Research5 days ago

    Now Might Be the Time to Jump Ship on Seagate

    STX stock just got another price-target cut and is now running into technical trouble

  • Markit6 days ago

    See what the IHS Markit Score report has to say about Seagate Technology PLC.

    # Seagate Technology PLC ### NASDAQ/NGS:STX View full report here! ## Summary * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is moderate * Economic output for the sector is expanding but at a slower rate ## Bearish sentiment Short interest | Neutral Short interest is moderate for STX with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Negative ETF activity is negative and may be weakening. The net inflows of $6.47 billion over the last one-month into ETFs that hold STX are among the lowest of the last year and appear to be slowing. ## Economic sentiment PMI by IHS Markit | Negative According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to score@ihsmarkit.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

  • Western Digital Stock Falls Following Analyst Rating Downgrade
    Zacks6 days ago

    Western Digital Stock Falls Following Analyst Rating Downgrade

    Western Digital's (WDC) growth has been hampered by increasing competition in the enterprise SSD category and it's risk to cut dividend led to the downturn.

  • 3 Top Digital Memory Stocks to Buy in 2019
    Motley Fool10 days ago

    3 Top Digital Memory Stocks to Buy in 2019

    Eventually the digital-memory bear market will end.

  • 5 High-Yield Dividend Stocks to Watch
    Motley Fool11 days ago

    5 High-Yield Dividend Stocks to Watch

    These five technology companies are returning big cash to shareholders.

  • Markit12 days ago

    See what the IHS Markit Score report has to say about Seagate Technology PLC.

    # Seagate Technology PLC ### NASDAQ/NGS:STX View full report here! ## Summary * Bearish sentiment is moderate * Economic output for the sector is expanding but at a slower rate ## Bearish sentiment Short interest | Neutral Short interest is moderate for STX with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. ETFs that hold STX had net inflows of $13.44 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. ## Economic sentiment PMI by IHS Markit | Negative According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to score@ihsmarkit.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

  • Western Digital (WDC) Unveils Storage Products at CES 2019
    Zacks13 days ago

    Western Digital (WDC) Unveils Storage Products at CES 2019

    Western Digital (WDC) benefits from enhancements to its data center storage portfolio and other product rollouts.

  • Seagate Ups Ante in Storage With New Solutions at CES 2019
    Zacks13 days ago

    Seagate Ups Ante in Storage With New Solutions at CES 2019

    Seagate (STX) unveils robust storage solutions at CES 2019.

  • How Does Seagate Technology plc (NASDAQ:STX) Fare As A Dividend Stock?
    Simply Wall St.13 days ago

    How Does Seagate Technology plc (NASDAQ:STX) Fare As A Dividend Stock?

    There is a lot to be liked about Seagate Technology plc (NASDAQ:STX) as an income stock. It has paid dividends over the past 10 years. The company currently pays out Read More...

  • Markit13 days ago

    See what the IHS Markit Score report has to say about Seagate Technology PLC.

    # Seagate Technology PLC ### NASDAQ/NGS:STX View full report here! ## Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is moderate ## Bearish sentiment Short interest | Neutral Short interest is moderate for STX with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Positive ETF activity is positive. Over the last month, ETFs holding STX are favorable, with net inflows of $13.46 billion. Additionally, the rate of inflows is increasing. ## Economic sentiment PMI by IHS Markit | Neutral According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to score@ihsmarkit.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

  • Business Wire13 days ago

    Seagate Technology to Report Fiscal Second Quarter 2019 Financial Results on February 4, 2019

    Seagate Technology plc will report fiscal second quarter 2019 financial results after the market closes on Monday, February 4, 2019. The investment community conference call to discuss these results will take place that day at 2:00 p.m.

  • Q4 2018 Earnings Reports in Focus
    Zacks14 days ago

    Q4 2018 Earnings Reports in Focus

    Q4 2018 Earnings Reports in Focus

  • Gearing Up for Q4 Earnings Season: BBBY, STX & More
    Zacks14 days ago

    Gearing Up for Q4 Earnings Season: BBBY, STX & More

    The big banks aren't reporting Q4 earnings until next week, but we also look forward to results from Constellation Brands (STX) and Bed, Bath & Beyond (BBBY) this week.

  • Business Wire14 days ago

    Seagate Levels up Data Creation at CES with Storage Solutions to Fit Any Digital Life

    CES 2019--Seagate Technology plc (STX), a world leader in data solutions, today announced an exciting extension of its portfolio with several new models, including new solid state drive offerings at CES® 2019. From gung-ho gamers to Instagram gurus, photo-collecting parents, or visionary creatives, Seagate offers the data storage solutions that empower users to live their best digital lives in today’s fast-changing data-heavy landscape. Today, consumers have more ways than ever to consume content, driving the need to create, distribute and manage data efficiently.

  • See what the IHS Markit Score report has to say about Seagate Technology PLC.
    Markit20 days ago

    See what the IHS Markit Score report has to say about Seagate Technology PLC.

    The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Index (PMI) data, output in the Technology sector is rising. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way.

  • Reasons Why You Should Get Rid of Seagate (STX) Stock Now
    Zacks25 days ago

    Reasons Why You Should Get Rid of Seagate (STX) Stock Now

    Seagate (STX) hurt by NAND flash pricing, which is currently on the decline on account of oversupply and weaker-than-expected growth in end-market demand.

  • Seagate Pin Hopes on Appointment of Gianluca Romano as CFO
    Zacks26 days ago

    Seagate Pin Hopes on Appointment of Gianluca Romano as CFO

    Seagate (STX) appoints Romano as CFO. Increasing traction for mass storage solutions across the company's edge and enterprise markets remains a tailwind.

  • See what the IHS Markit Score report has to say about Seagate Technology PLC.
    Markit27 days ago

    See what the IHS Markit Score report has to say about Seagate Technology PLC.

    The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Index (PMI) data, output in the Technology sector is rising. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way.

  • Forget Western Digital: Seagate Technology Is a Better Data Storage Stock
    Motley Fool28 days ago

    Forget Western Digital: Seagate Technology Is a Better Data Storage Stock

    Tumbling memory prices will hurt the former more than the latter.

  • Better Buy: Seagate Technology vs. Intel Corporation
    Motley Fool28 days ago

    Better Buy: Seagate Technology vs. Intel Corporation

    Should you take a contrarian view on either out-of-favor tech stock?

  • Is Western Digital a Buy?
    Motley Fool28 days ago

    Is Western Digital a Buy?

    Is the beaten-down tech stock ready to rebound after being cut in half this year?

  • See what the IHS Markit Score report has to say about Seagate Technology PLC.
    Markitlast month

    See what the IHS Markit Score report has to say about Seagate Technology PLC.

    Index (PMI) data, output in the Technology sector is rising. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

  • Business Wirelast month

    Seagate Appoints Gianluca Romano Executive Vice President and Chief Financial Officer

    Seagate Technology , a world leader in storage solutions, today announced that Gianluca Romano has been appointed executive vice president and chief financial officer. Romano will join Seagate January 7th, 2019 reporting to Seagate’s Chief Executive Officer, Dave Mosley.