On June 20, 2023, Victory Capital Management Inc. revealed that it had increased its stake in Seagate Technology Holdings plc (NASDAQ:STX) by 20.8% during the fourth quarter of the previous year. The institutional investor now owns 661,439 shares of the data storage provider’s stock with a value worth $34,798,000 at the end of last quarter. With such a strong vote of confidence from Victory Capital Management Inc., investors have taken notice of Seagate Technology not only for its impressive share prices but also for its upcoming quarterly dividend payouts.
Seagate Technology recently declared a quarterly dividend that will be paid on July 5th to investors of record who have been issued a $0.70 dividend. This sets Seagate Technology apart as an attractive investment option for those looking for high yields on investments. The ex-dividend date is set to be June 20th, just before the dividend payout and presents an opportunity for savvy investors to capitalize on this news.
The annualized dividend payout is impressive at $2.80 with a solid yield of 4.35%. But why has the firm’s payout ratio gone into negative territory? It is determined by dividing the company’s net income by shareholders’ equity during a particular timeframe to gauge how much profit they earn compared to shareholder investment. In Seagate’s case, its negative earnings made shareholders’ equity greater than its net income and thus resulted in a negative payout ratio.
Despite this recent downfall in profits, Seagate Technology has caught the eye of executive insiders making significant stock adjustments lately. On May 26th, SVP Katherine Schuelke successfully sold off over three thousand shares at an average price of $62.09 per share, resulting in total gainings of $216,507.83 after this transaction was made public through SEF filings required by law.
Furthermore, senior Vice President’s possession increased by 28,658 shares in the company. It is estimated that 1.00% of the stock is currently overseen by insiders, and hence investors should remain assured with this substantial amount of insider ownership.
Seagate Technology seems to be a reasonable investment option for high yields and dividends payouts backed by Victory Capital Management Inc. analysts have been able to predict similar increases, and hence the future for Seagate technology looks bright indeed. Investors looking for a sound return on their investments should take advantage of this golden opportunity before it closes out.
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Large Investors Increase Holdings in Seagate Technology Despite Analyst Pessimism and Volatility
Seagate Technology’s stock has recently seen changes in the holdings of large investors. One such investor, Sanders Capital LLC, increased its holdings by 89.3% during the fourth quarter, now owning over 10 million shares valued at $574.8 million. Norges Bank also purchased a new position in Seagate Technology during the same quarter, valued at around $92.2 million.
State Street Corp and Renaissance Technologies LLC both increased their holdings during the third quarter by 16.3% and 328.3%, respectively. Finally, First Trust Advisors LP raised its stake in the company by 77.9% during the fourth quarter.
Many equities analysts have given their opinions on Seagate Technology in recent reports, with Deutsche Bank Aktiengesellschaft lowering its target price from $60 to $55 and setting a “hold” rating for the company. Meanwhile, Rosenblatt Securities decreased their target price from $75 to $70 but listed it as a “buy” rating instead.
On another note, Seagate Technology declared a quarterly dividend that is set to be paid on Wednesday, July 5th to investors of record as of Wednesday, June 21st.
Despite these changes and fluctuations, Seagate Technology’s one-year low stands at $47.47 while its one-year high was recorded at $83.78 with an average consensus price target of $66 according to data from Bloomberg.
Seagate Technology’s most recent earnings report showed a down quarter with revenue falling significantly compared to analyst expectations; however, sell-side analysts predict sentiment moving forward will remain pessimistic towards Seagate with an EPS of -0.34 expected for this fiscal year alone.
Investors are advised caution before dealing in STX stocks due to such volatility until it finds stability stemming from consistent earnings growth to match industry expectations.