Seagate Technology Holdings, Inc. (STX) stock rallied with the broader market on Wednesday despite negative analyst action, but retail investors remained wary of the stock.
Fremont, California-based Seagate, a data storage devices company, has seen its stock rise 9.6% in January following a below-market return of 4% in 2024.
The company is scheduled to report its fiscal year 2025 second-quarter results after the market closes on Tuesday. Analysts, on average, expect the company to report non-GAAP earnings per share (EPS) of $1.88 for the quarter, up from $0.12 a year ago.
The consensus revenue estimate calls for year-over-year (YoY) growth to $2.32 billion from $1.55 billion.
In a note previewing the quarterly results, BofA Securities reduced the price target for Seagate stock to $124 from $130, TheFly reported. Notwithstanding the cut, the stock still presents an upside potential of about 36%.
The firm’s analysts blamed the action on Street’s “elevated” March quarter revenue estimate. However, it expects the company to report in-line December quarter earnings and revenue.
BofA rates Seagate stock a ‘Buy.’
On Stocktwits, retail sentiment toward the stock stayed ‘neutral’ (47/100), although message volume rose to ‘high’ levels.
Posting a message on the Seagate stream on Stocktwits, a watcher said the stock is trying to bottom on a long-term trend line. At $95, Seagate stock is a bargain, another contended.
On the other hand, some expressed a negative view, as they see memory chipmakers becoming obsolete and demand remaining weak in 2025.
At last check, the stock climbed 3.83% to $94.72, with volume just about in line with the average.
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