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Seagate Technology (STX)

  • Jul. 6, 2012, 10:13 AM
    Seagate (STX -2.4%) falls moderately, and Western Digital (WDC -0.7%) only slightly, after the former's FQ4 warning. The companies' recent selloff, together with their low valuations, seems to be limiting downside. Baird is downgrading Seagate to Neutral, but the company has its defenders. Needham is pleased Seagate still expects its gross margin to stay above 30%. Brean Murray is comforted by Seagate's huge stock buybacks ($1.2B spent in FQ4).
    | Jul. 6, 2012, 10:13 AM | Comment!
  • Jul. 5, 2012, 5:08 PM
    Seagate (STX) -5.9% AH after warning it expects FQ4 revenue of $4.5B, below a consensus of $4.9B. Gross margin is expected to be 33.6%, below prior guidance of at least 34.5%. The company blames a failure to achieve share gains due to a faster-than-expected industry recovery from Thai flooding, and a "supplier quality issue" that affected enterprise hard drive shipments by 1.5M. Several analysts issued cautious notes last week. WDC -4.5% in sympathy.
    | Jul. 5, 2012, 5:08 PM | 2 Comments
  • Jun. 28, 2012, 2:52 PM
    In addition to ThinkEquity and JPMorgan, Barclays' Ben Reitzes has issued a downbeat note about Seagate (STX -6.6%) and Western Digital (WDC -4.6%). Reitzes says checks indicate PC build activity was weaker than expected in Q2, and thinks notebook drive sales could disappoint. Also: hard drive assembly supplier Hutchinson (HTCH -11.7%) has issued a June quarter warning. Hard drive chipmakers LSI (LSI -3.7%) and Marvell (MRVL -3.4%) are also underperforming. (previous)
    | Jun. 28, 2012, 2:52 PM | Comment!
  • Jun. 28, 2012, 9:25 AM
    Seagate (STX) -5.4% and Western Digital (WDC) -3.7% following downgrades to Hold from ThinkEquity. The firm says checks indicate emerging markets PC demand is weakening, and what's bad from the PC market is bad for the hard drive market. While commentary about soft U.S./Euro PC demand has been widespread, an emerging markets slowdown seems to be a wrinkle the market hasn't yet priced in.
    | Jun. 28, 2012, 9:25 AM | 7 Comments
  • Jun. 25, 2012, 5:58 PM
    Seagate Technology (STX) up 4.6% AH on news it will replace Progress Energy (PGN) in the S&P 500 Index after Friday's close. Progress is set to be acquired by Duke Energy (DUK).
    | Jun. 25, 2012, 5:58 PM | 2 Comments
  • Jun. 25, 2012, 4:29 PM
    Seagate (STX) is making an investment in DensBits, a developer of solid-state drive (SSD) controllers. The companies are also forming a partnership that will result in DensBits' controllers, which promise to make inexpensive TLC flash memory perform as well as more costly MLC flash, being used in Seagate's SSDs. Controller IP is a key way for SSDs to differentiate themselves - hence Apple's purchase of Anobit.. Marvell (MRVL) is the top independent supplier of SSD controllers.
    | Jun. 25, 2012, 4:29 PM | 1 Comment
  • Jun. 23, 2012, 6:30 PM
    Tech Report has been tracking prices for solid-state drives (SSDs) sold by OCZ, Intel (INTC), and others since their 2011 releases, and estimates the average drive has seen its price decline 46% since launch time, thanks in large part to plummeting NAND flash memory prices. That has fueled growing SSD use within PCs (I, II), and is one of the reasons (among others) why hard drive giants Seagate (STX) and Western Digital (WDC) have seen their valuations reach dirt-cheap levels.
    | Jun. 23, 2012, 6:30 PM | 14 Comments
  • Jun. 21, 2012, 11:02 AM
    Hard drive kingpins Seagate (STX -3.8%) and Western Digital (WDC -3.2%) see their low valuations fall some more after Morgan Stanley's Katy Huberty slashes her estimates on concerns about PC demand and channel inventories. Huberty expects Q3 price negotiations to be tough for the companies, which have seen favorable pricing thanks to the impact of Thai flooding on industry capacity, and is cutting her Q2 hard drive demand forecast to 156M units from a prior 161M. (Barclays)
    | Jun. 21, 2012, 11:02 AM | Comment!
  • Jun. 11, 2012, 6:26 PM
    Seagate (STX -3.6%) +2.5% AH after the company discloses David Einhorn has increased his stake to 23M shares, or about 5.4% of the company. According to his firm's latest 13-F, Einhorn's stake stood at 14.5M shares at the end of Q1. Seagate's low valuation (it trades at just 2.4x estimated FY13 EPS) likely has something to do with Einhorn's interest.
    | Jun. 11, 2012, 6:26 PM | 9 Comments
  • Jun. 8, 2012, 2:37 PM
    Brean Murray says it's far too early to change its bullish stance on disk drive stocks, despite declining unit shipments and concerns over ASP's. The firm notes their channel checks look reasonable relative to guidance and that numbers are coming down towards their estimates from higher Street estimates. The firm maintains Buy ratings on both Seagate (STX +3.5%) and Western Digital (WDC +1.5%)
    | Jun. 8, 2012, 2:37 PM | Comment!
  • Jun. 1, 2012, 2:02 PM
    Seagate (STX -6.4%) and Western Digital (WDC -3.9%) have had a very rough week, as concerns about weakening PC demand and the end of a favorable supply/pricing climate for hard drives (the result of Thai manufacturing disruptions) take their toll. Also, yesterday, Barclays aired concerns about the impact of solid-state drives (boosted by upcoming MacBook releases) and tablet cannibalization on hard drive demand.
    | Jun. 1, 2012, 2:02 PM | 4 Comments
  • May 29, 2012, 11:23 AM
    Seagate (STX -2.3%) and Western Digital (WDC -2.1%) sell off following a downgrade to Equal Weight from Barclays' Ben Reitzes, who sees soft PC demand hurting the companies' 2H results. Reitzes also claims notebook hard drive prices, boosted by capacity shortages, are falling faster than expected, and says his checks indicate hard drive production cuts and PC inventory tightening. Moreover, he expects Apple's rumored plans to sell a cheaper MacBook Air to hurt hard drive demand.
    | May 29, 2012, 11:23 AM | 1 Comment
  • May 23, 2012, 11:03 AM
    Cash-rich Seagate (STX -2.2%) is acquiring French external hard drive/low-end storage vendor LaCie for $186M. Seagate declares the companies' offerings to be "highly complementary" (in spite of moderate overlap), and touts LaCie's ability to bolster its European and Japanese presence. Seagate might also be interested in the potential to boost LaCie's margins by having the company rely on Seagate's hard drives.
    | May 23, 2012, 11:03 AM | Comment!
  • May 22, 2012, 10:08 AM
    Hard drive kingpins Seagate (STX -6.8%) and Western Digital (WDC -4.8%) trade lower following analyst commentary about high inventory levels. Controller chip suppliers LSI (LSI -6.7%) and Marvell (MRVL -2.3%) are falling in sympathy. (previous)
    | May 22, 2012, 10:08 AM | Comment!
  • May 18, 2012, 2:04 PM
    Up yesterday after beating FQ1 estimates and delivering decent FQ2 guidance, as well as announcing a dividend and new buybacks, Marvell (MRVL -2.2%) is now trading lower. Judging by how hard drive controller customers Seagate (STX -4.3%) and Western Digital (WDC -5.5%) are also selling off, the Street may have wanted hard drive demand to drive more FQ2 upside. Nomura (Reduce) is worried about the margin impact of a mix shift towards mobile baseband chips. (transcript) (also)
    | May 18, 2012, 2:04 PM | Comment!
  • May 9, 2012, 1:22 PM
    Brean Murray reiterates a Buy on Seagate (STX -0.9%) after meeting with CFO Pat O'Malley. The firm thinks Seagate's 2013 gross margin could be above the mid-20% level the Street is currently expecting, thanks partly to lower costs, and believes management's comments suggest there could be upside to June quarter margin and EPS estimates. Seagate recently fell due to rival Western Digital's disappointing FQ4 guidance.
    | May 9, 2012, 1:22 PM | Comment!
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Company Description
Seagate Technology PLC is a provider of electronic data storage solutions. Its products are hard disk drives, hard drives or HDDs. It also produces range ofelectronic data storage products includingSSHD,SSD,PCIe cards and SATA controllers.
Sector: Technology
Country: United States