Seagate Technology (NASDAQ:STX) Holdings plc (NASDAQ:STX) CEO William D. Mosley has sold a significant portion of his company shares, according to a recent SEC filing. On September 26, Mosley completed the sale of 141,785 ordinary shares at an average price range of $110.00 to $110.43, with the weighted average sale price reported at $110.1755 per share. The total value of the shares sold amounts to approximately $15,621,233.
The transaction was carried out under a Rule 10b5-1 trading plan, which was adopted on May 6, 2024. Such plans allow company insiders to establish pre-arranged plans to buy or sell shares at a predetermined time to avoid accusations of trading on nonpublic information.
In addition to the sale, the SEC filing revealed that Mosley also acquired the same number of shares, 141,785, through the exercise of options at a price of $50.29 per share. This transaction is part of the company's 2012 Equity Incentive Plan, with the options subject to a four-year vesting schedule. The total value for the acquired shares is roughly $7,130,367.
Following these transactions, Mosley's ownership in Seagate Technology has adjusted to 668,616 ordinary shares. The exercise and subsequent sale of shares indicate a notable change in the CEO's stake in the company, providing investors with insights into executive movements within Seagate Technology.
Investors often monitor insider buying and selling as it can provide valuable signals about the company's current state and future prospects. However, it is important to note that insider transactions may not always be indicative of the company's operational performance and are sometimes influenced by personal financial management decisions.
Seagate Technology, headquartered in Fremont, California, and listed on the NASDAQ, is a global leader in data storage solutions. The company's ordinary shares are traded under the ticker symbol STX.
In other recent news, Seagate Technology has been the subject of several financial firms' analysis, resulting in a positive outlook for the company's financial future. Seagate's earnings per share for the June quarter surpassed 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. This development comes alongside the announcement of Robert A. Bruggeworth's decision not to stand for re-election at the upcoming Annual General Meeting of Shareholders, marking a change in the company's Board of Directors.
Several firms, including BofA Securities, Loop Capital, and Morgan Stanley (NYSE:MS), have increased their price targets for Seagate, citing potential revenue and margin recovery, strong hard disk drive supply and demand dynamics, and significant growth potential. Rosenblatt Securities raised their target for Seagate shares to $125, following a reported surge in demand from Cloud Service Providers and the Video & Imaging Application sector.
These recent developments highlight Seagate's ongoing financial performance and its potential for future growth. The company's focus on profitability and the anticipation of improved revenue and EPS for the coming quarter underscore the positive outlook held by financial analysts. These factors, combined with the changes in Seagate's board, contribute to the evolving narrative of the company's financial health and potential.
InvestingPro Insights
Seagate Technology's recent stock performance and financial metrics offer additional context to CEO William D. Mosley's share transactions. According to InvestingPro data, STX's stock has shown remarkable strength, with a 77.5% price total return over the past year and a 32.55% return year-to-date. The stock is currently trading at 95.8% of its 52-week high, indicating strong momentum.
This positive price action aligns with an InvestingPro Tip suggesting that Seagate has maintained dividend payments for 14 consecutive years, which may be attractive to income-focused investors. The company's current dividend yield stands at 2.53%, based on the most recent ex-dividend date of September 23, 2024.
Despite the strong stock performance, Seagate's valuation metrics present a mixed picture. The company's P/E ratio is 68.18, which an InvestingPro Tip notes as "trading at a high earnings multiple." However, another tip points out that STX is "trading at a low P/E ratio relative to near-term earnings growth," with a PEG ratio of 0.43 for the last twelve months as of Q4 2024.
For investors seeking a deeper understanding of Seagate's financial health and market position, InvestingPro offers 13 additional tips, providing a comprehensive analysis of the company's prospects and potential risks.
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