STX Should I Buy
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Seagate Technology Holdings PLC (STX) is not a strong buy for a beginner, long-term investor at this moment. While the company has shown strong financial performance and positive analyst sentiment, the recent price decline, lack of proprietary trading signals, and cautious sentiment from Congress trading data suggest waiting for better entry points.
The stock's technical indicators are mixed. While the moving averages are bullish (SMA_5 > SMA_20 > SMA_200), the MACD histogram is below 0 and negatively contracting, indicating bearish momentum. RSI is neutral at 60.683. The price is near a key support level at S1: 397.254, but the recent market decline (-6.30%) suggests caution.
Strong Q2 financial performance with revenue up 21.51% YoY, net income up 76.49% YoY, and gross margin improvement.
Positive analyst sentiment with multiple price target upgrades and strong demand for Seagate's products, particularly in the nearline cloud and HAMR technology.
Hedge funds are significantly increasing their holdings, with a 221.37% increase in buying activity last quarter.
Recent price decline of -6.30% in regular market trading and -4.33% in pre-market trading, indicating potential bearish sentiment.
Congress trading data shows 2 sale transactions and no purchases in the last 90 days, reflecting cautious sentiment.
Elevated implied volatility (IV percentile: 97.
suggests uncertainty and potential risk in the near term.
In Q2 2026, Seagate reported strong financials with revenue increasing to $2.825 billion (up 21.51% YoY), net income rising to $593 million (up 76.49% YoY), and EPS growing to 2.6 (up 67.74% YoY). Gross margin also improved significantly to 41.63%, reflecting strong operational efficiency.
Analysts are generally positive on Seagate, with multiple price target upgrades. Recent upgrades include UBS raising the target to $440, Citi to $480, and Bernstein to $500. Analysts cite strong demand, margin expansion, and favorable pricing as key drivers. However, UBS maintains a Neutral rating, citing valuation concerns.
