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Is Seagate Technology Holdings plc (NASDAQ: STX) Stock Good For Medium-Term Investing?

Seagate Technology Holdings plc (NASDAQ:STX) traded at $62.59 at last check on Tuesday, January 24, made a downward move of -1.01% on its previous day’s price.

Looking at the stock we see that its previous close was $63.23 and the beta (5Y monthly) reads 1.02 with the day’s price range being $60.49 – $63.74. The company has a trailing 12-month PE ratio of 12.19. In terms of its 52-week price range, STX has a high of $117.03 and a low of $47.47. The company’s stock has gained about 23.97% over that past 30 days.

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Seagate Technology Holdings plc has a market cap of $12.80 billion and is expected to release its quarterly earnings report on Jan 25, 2023. With its Forward Dividend at 2.80 and a yield of 4.43%, the company’s investors could be anxious for the STX stock to gain ahead of the earnings release. Estimates by analysts give the company expected earnings per share (EPS) of $0.1, with the EPS growth for the year raised at $1.62 for 2023 and $4.99 for next year. These figures represent -80.20% and 208.00% growth in EPS for the two years respectively.

Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $1.83 billion, with a low of $1.7 billion and a high of $1.94 billion. The median projection represents growth adding up to -41.40% compared to sales growth for the corresponding quarter a year ago. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2023 is expected to hit $7.75 billion, or -33.50% down from figures reported last year.

There have been no upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the STX stock, short term indicators assign the stock an average of 50% Buy, while medium term indicators assign it an average of 50% Sell. Long term indicators on average place the stock in the category of Hold.

Based on estimates by 24 analysts, where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 14 have rated the Seagate Technology Holdings plc (STX) stock as a Hold, while 8 rate it as a Buy. 1 analyst(s) rate it as overweight while 0 of them rated it as underweight, whereas 1 suggest the stock as a Sell. The stock has an overall rating of Overweight and investors could take advantage and scoop up stock of the company.

Looking further, we note the current price level is 13.42% off its SMA20 and 15.49% from its 50-day simple moving average. The RSI (14) is pointing at 72.17 while the volatility over the past week is 3.80% and jumps to 3.30% over the past one month. The beta value is 1.03, while the average true range (ATR) is currently pointing at 2.04. The average price target for the stock over the next 12 months is $59.83, with the estimates having a low of $35.00 and a high of $70.00. These price ends are 44.08% and -11.84% off the today’s price level respectively, although investors could be excited at the prospect of a 3.34% if the STX share price touches on the median price of $60.50.

Let’s briefly compare Seagate Technology Holdings plc (STX) stock to its peers. We find that today’s price change of -1.01% and -37.04% over the past 12 months for STX competes that of NetApp Inc. (NTAP), which has seen its stock price fall -0.10% in the latest trading session and is -23.68% over the last one year. Another of its peers Western Digital Corporation (WDC) has dropped -0.96% today, and was -30.26% down over the past year, while Pure Storage Inc. (PSTG) is also down -0.17% yet, while its price remains in the green at 5.46% over the same period. Seagate Technology Holdings plc has a P/E ratio of 12.19 compared to NetApp Inc.’s 10.16 and Western Digital Corporation’s 14.38. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial are today at -0.40% and -0.23%, respectively, in early deals.

Coming back to Seagate Technology Holdings plc (NASDAQ:STX), we note that the average 3-month trading volume was 2.65 million, while that of the preceding 10-day period stands at 2.5 million. Current shares outstanding are 208.00 million.

The insiders hold 0.40% of the company’s shares while institutions hold 87.80%. The data shows that short shares as of Dec 29, 2022, stood at 10.09 million at a short ratio of 4.14. This represents a 4.89% short interest in shares outstanding on Dec 29, 2022. Shares short rose in December from the previous month at 9.43 million. Investors should be excited about this stock as its upside potential is great, with today’s price pushing the stock 20.19% up in year-to-date price movement.

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