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Seagate technology's CTO sells shares worth $126,558

Published 23/10/2024, 09:18 am
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John Christopher Morris, the Senior Vice President and Chief Technology Officer of Seagate Technology (NASDAQ:STX) Holdings plc (NASDAQ:STX), recently executed a series of transactions involving the company's stock, as disclosed in a Form 4 filing.

On October 19, Morris acquired 3,524 ordinary shares through the vesting of performance-based restricted share units, with no cash changing hands for these shares. The same day, 1,607 shares were withheld to cover tax liabilities, valued at $180,176, at a price of $112.12 per share.

Further, on October 22, Morris sold 1,131 shares at a price of $111.90 each, totaling $126,558. This sale was conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks.

Following these transactions, Morris holds 7,191 shares directly.

In other recent news, Seagate Technology has been the focus of several key developments. During their Annual General Meeting, shareholders approved the re-allotment of treasury shares and executive compensation. The meeting also saw the election of all eleven director nominees, with Mark W. Adams receiving substantial support. Ernst & Young LLP was ratified as the independent auditors for the fiscal year ending June 27, 2025.

In addition, Seagate is expected to see improved revenue and EPS, as per a leading financial institution that maintained its Buy rating on the company's shares. This positive outlook persists despite an anticipated delay in the qualification of Heat-Assisted Magnetic Recording technology for cloud services.

Furthermore, Robert A. Bruggeworth, a member of Seagate's Board of Directors, announced he will not stand for re-election at the upcoming Annual General Meeting of Shareholders. Financial firms including BofA Securities, Loop Capital, and Morgan Stanley (NYSE:MS) have revised their price targets for Seagate, citing potential revenue and margin recovery, strong hard disk drive supply and demand dynamics, and significant growth potential.

Seagate's earnings per share for the June quarter exceeded expectations, reaching $1.05, and the company forecasted over $2.1 billion in revenue and an EPS of $1.40 for the first fiscal quarter of 2025. These recent developments offer valuable insights for investors tracking the company's progress.

InvestingPro Insights

Seagate Technology Holdings plc (NASDAQ:STX) has been experiencing significant market momentum, as evidenced by its recent stock performance and financial metrics. According to InvestingPro data, Seagate's stock has shown impressive returns, with a 73.66% price total return over the past year and a substantial 33.74% return in the last six months. This aligns with the insider trading activity we've observed, potentially indicating confidence in the company's prospects.

The company's market capitalization stands at $23.72 billion, reflecting its substantial presence in the Technology Hardware, Storage & Peripherals industry. An InvestingPro Tip highlights that Seagate is a prominent player in this sector, which adds context to the significance of the insider transactions reported.

Despite a revenue decline of 11.28% in the last twelve months, Seagate's quarterly revenue growth of 17.79% suggests a potential turnaround. This improvement is further supported by another InvestingPro Tip indicating that analysts anticipate sales growth in the current year. This positive outlook may explain why insiders like John Christopher Morris are engaging in strategic stock transactions.

For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Seagate Technology, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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