William D. Mosley, Chief Executive Officer of Seagate Technology (NASDAQ:STX) Holdings plc (NASDAQ:STX), has sold a significant portion of his holdings in the company. According to a recent SEC filing, Mosley divested a total of 20,000 ordinary shares on November 1, 2024, amounting to approximately $1.99 million. The shares were sold at prices ranging from $99.16 to $100.93 per share.
Following the transactions, Mosley retains ownership of 642,497 shares in the data storage company. These sales were conducted under a pre-established Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for selling stocks, thereby avoiding concerns of insider trading.
In other recent news, Seagate Technology has been making significant strides in the tech world. The company reported robust financial performance in its Fiscal First Quarter 2025, with revenue surging to $2.17 billion, marking a 49% year-over-year growth. Non-GAAP EPS also exceeded expectations at $1.58, driven by an improved product mix and pricing. Seagate's gross margin reached a decade-high of 33.3%, with non-GAAP gross profit climbing 24% to $723 million.
These recent developments are largely attributed to strong demand in the cloud and enterprise markets, especially for high-capacity nearline drives. Benchmark has maintained a Hold rating on Seagate's stock, based on the company's strong performance and the potential for margin improvement due to AI integration. For fiscal year 2026, Seagate's non-GAAP earnings are projected to stand at $8.44 per diluted share, with sales estimated at $10.1 billion.
Seagate is also optimistic about the demand for mass capacity drives and future growth leveraging HAMR technology. Despite potential economic uncertainties in China and potential delays in HAMR rollout, Seagate remains committed to delivering scalable storage solutions and maximizing shareholder value.
InvestingPro Insights
While William D. Mosley's recent sale of Seagate Technology Holdings plc (NASDAQ:STX) shares might raise eyebrows, it's crucial to consider the broader financial context of the company. According to InvestingPro data, Seagate's market capitalization stands at $21.16 billion, reflecting its significant presence in the Technology Hardware, Storage & Peripherals industry.
Despite the insider sale, there are positive indicators for Seagate's financial health. An InvestingPro Tip highlights that analysts anticipate sales growth in the current year, which aligns with the company's revenue growth of 6.79% over the last twelve months. This growth trajectory is further supported by a robust quarterly revenue increase of 49.11% in the most recent quarter.
Another encouraging InvestingPro Tip notes that Seagate has maintained dividend payments for 14 consecutive years, demonstrating a commitment to shareholder returns. The current dividend yield of 2.91% may be attractive to income-focused investors.
It's worth noting that Seagate's P/E ratio of 25.51 suggests the stock is trading at a premium compared to some peers. However, this should be balanced against the company's strong financial performance, including an EBITDA growth of 303.67% over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 8 more InvestingPro Tips available for Seagate Technology, providing a deeper dive into the company's financial outlook and market position.
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