Seagate (STX) 2.89% Plunge Hits 2025 Low on Cautious Guidance, PC Demand Woes

Seagate Technology (STX) shares fell 2.89% on Thursday, hitting their lowest level since August 2025, with an intraday decline of 3.32%. The stock’s slide reflects investor concerns over short-term challenges despite the company’s strong fourth-quarter performance.

Seagate reported robust Q4 2025 results, surpassing revenue and earnings expectations, driven by increased demand in enterprise and data center markets. However, the stock’s post-earnings dip was attributed to cautious Q1 2026 guidance, which fell slightly below estimates. The company cited weak PC market demand and macroeconomic uncertainty as key headwinds, prompting an 8% drop in after-hours trading following the announcement.

Analyst activity highlighted mixed signals for the stock. Cantor Fitzgerald upgraded Seagate to “Overweight” with a $175 target, while Barclays and others raised price targets to $180–$188. These upgrades underscored confidence in Seagate’s role in AI-driven cloud infrastructure and enterprise storage. However, some analysts flagged risks tied to PC demand volatility and macroeconomic shifts, contributing to near-term jitters.

Insider selling added to the bearish sentiment. Executive officers collectively sold millions in shares over 90 days, with key executives offloading large portions of their holdings. While insider activity is common in tech, the scale raised questions about internal confidence. Institutional investors, conversely, bolstered their stakes, with firms like Raymond James and Vanguard increasing positions, signaling long-term support for Seagate’s growth narrative.

Strategic moves by the company, including a $5 billion share buyback program and a dividend hike, reinforced management’s commitment to shareholder returns. CEO Dave Mosley’s elevation to Board Chair also signaled leadership alignment for future initiatives. These actions, coupled with Seagate’s focus on AI and cloud storage, positioned the firm to capitalize on long-term trends, even as near-term macroeconomic pressures persist.

Market dynamics further complicated the outlook. While AI infrastructure and enterprise storage remain growth drivers, supply chain disruptions and interest rate uncertainty weighed on investor sentiment. Seagate’s ability to navigate these challenges while maintaining margin expansion will be critical in determining its trajectory amid a volatile sector landscape.