(VIANEWS) – Seagate Technology (NASDAQ: STX) shares dropped 9.12% at 10:10 AM EST Thursday morning to close at EUR64.74 – following up from their earlier gains – in an uptrend that began yesterday and extended itself into today’s trading session. Meanwhile, NASDAQ was down 1.06% at EUR13,872.447 following three consecutive losing sessions; this trend indicates bearish trading conditions overall. Seagate Technology closed with EUR71.23 closing price — 4.98 percent below their 52-week high of EUR74.96
About Seagate Technology
Seagate Technology Holdings plc, founded in 1978 and headquartered in Dublin, Ireland is an industry-leading provider of data storage technologies and solutions. Their comprehensive selection of HDDs, SSDs, systems, external storage solutions as well as OEM-, distributor- and retailer customers make them one of the premier data storage brands available globally.
Yearly Analysis
Based on the available data, Seagate Technology’s stock is currently trading below its 52-week high but above its 52-week low. Although negative 7.6% sales growth forecast is cause for concern among investors, next year is projected for 24.9% sales expansion growth – as is its EBITDA ratio of 2.49 which indicates profit from operations, signalling positive prospects for shareholders.
Overall, Seagate Technology’s stock appears to offer cautious optimism with potential for growth in the future. Investors should closely track its financial performance and any market changes that may impact its value; additional factors such as competitive position, industry trends and overall economic conditions could also prove helpful when making investment decisions.
Technical Analysis
Seagate Technology’s stock has been performing exceptionally well, surpassing both its 50-day and 200-day moving averages with ease. Unfortunately, recent trading volumes may indicate reduced investor enthusiasm.
Over the past week or two, volatility of this stock has remained relatively consistent, with average intraday fluctuations of 0.08% for one week, 0.17% for two weeks, 1.64% for three and four weeks and its highest weekly amplitude at 4.04%.
According to the stochastic oscillator, Seagate Technology stock is currently considered overbought and could soon undergo a price correction.
Overall, Seagate Technology’s stock appears to be performing well; however, investors should remain wary of its overbought condition and potential price correction. Therefore, investors may wish to closely follow its performance while monitoring any profits that arise or implement stop-loss orders to mitigate potential losses.
Quarter Analysis
Seagate Technology reported negative 25.5% quarter sales growth for their current quarter, which indicates significant sales decline. Growth estimates for both this quarter and its counterpart quarter are negative 131.2% and negative 93.8%, indicating further reduction of growth over time.
Additionally, year-on-year quarterly revenue growth for the company has declined 39% year over year and is currently sitting at 7.38B over twelve trailing months – further evidence of its negative growth prospects in the short term.
Based on this information, investors should take caution when considering investing in Seagate Technology. With its negative growth outlook and declining revenues suggesting significant challenges ahead, it may be wiser for them to explore other investment opportunities with more promising growth projections.
Equity Analysis
Seagate Technology currently boasts an estimated forward annual dividend yield of 4.35% with its next dividend payment scheduled to occur on September 24th at an estimated forward annual dividend rate of 2.8. This indicates that Seagate plans on dispersing an impressive portion of earnings to its shareholders as dividends.
However, the company’s trailing twelve months EPS stands at EUR-2.56; which suggests they are currently operating at a loss and could serve as an indicator that there may not be sufficient earnings available to sustain or increase dividend payments in future. This should serve as a warning signal to potential investors who might wish to consider making investments with them.
Seagate Technology operates in an extremely volatile technology sector that is vulnerable to rapid shifts in market conditions and competitive pressures, thus investors should carefully consider all risks associated with investing in it, including potential fluctuations in its stock price and impacts of economic and industry trends on its financial performance.
Though Seagate Technology’s dividend yield may tempt some investors, before making an investment decision they must carefully examine both its financial health and industry risks before making their choice.
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