Seagate Technology Holdings (STX): A Top Undervalued Tech Stock According to Hedge Funds

In the ever-evolving landscape of technology stocks, Seagate Technology Holdings plc (STX) has caught the eye of hedge funds, with its recent financial performance and growth prospects making it an attractive investment opportunity. As of the fiscal first quarter of 2025, Seagate reported strong revenue growth, expanding gross and operating margins, and increased cash flow from operations and free cash flow. The company also raised its quarterly cash dividend by approximately 3% to $0.72 per share, reflecting its confidence in future cash flows.

Seagate's recent financial results and growth prospects have not gone unnoticed by hedge funds. According to the latest data, hedge fund ownership of Seagate's stock has increased significantly, with the number of hedge funds holding the stock rising to 17 from 12 in the previous quarter. This increase in ownership suggests that hedge funds are bullish on Seagate's prospects and see it as an undervalued tech stock.

One of the key factors driving hedge fund interest in Seagate is its strong earnings growth forecast. According to the provided data, Seagate's earnings are expected to grow at an exceptional rate of 58.78% per year over the next three years. This high growth potential, coupled with the company's strong financial performance and dividend growth, makes Seagate an attractive investment opportunity for growth-oriented hedge funds.

Another factor that may be attracting hedge funds to Seagate is its innovative technology and growing demand for cloud storage solutions. Seagate's aggressive ramp of its 28-terabyte nearline drives and the expansion of cloud customers entering qualification on HAMR-based Mozaic products highlight the company's ability to capitalize on emerging trends in the data storage market. Additionally, Seagate's commitment to research and development and its focus on mass-capacity data storage position it well to address customer needs and capture significant opportunities in its core HDD business.

Seagate's recent financial performance and growth prospects, coupled with its innovative technology and growing demand for cloud storage solutions, have made it a top undervalued tech stock according to hedge funds. As the company continues to execute on its plans and address customer needs, it is well-positioned to deliver profitable growth and return value to shareholders. With its strong earnings growth forecast, dividend growth, and innovative technology, Seagate Technology Holdings plc (STX) is an attractive investment opportunity for hedge funds and long-term investors alike.