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Julie Young
Articles (859) 

Seagate Technology Announces Dividend, Stock Price at a Low

Forward dividend yield of 8.14%

September 12, 2017 | About:

Seagate Technology PLC (NASDAQ:STX) is reporting a forward dividend yield of 8.14% and has announced a quarterly dividend of 63 cents per share with an ex-dividend date of Sept. 19.

While paying one of the leading dividends in the technology space, the stock is currently trading at a low of $31.25. Year to date, it is down $6.97 or 18.26%. At the current price, however, it could offer a potential buying opportunity for long-term investors.

It also opens up a potential market opportunity in original equipment manufacturer (OEM) storage tech. Jefferies analyst James Kisner released a research report this week which drops the stock’s target value from $40 to $29. The Jefferies report suggests the company is struggling with its 10 terabyte helium drive production ramping and also says it lacks a clear NAND strategy.

Despite the downgrade, it is still one of the industry’s leading OEM storage tech manufacturers. Its revenue is primarily generated from the production of hard disk drive technology. In its most recent earnings report for fiscal year 2017, it reported the following results:

Revenue was down 3%, but profitability showed significant improvements. Income from operations increased 137% to $1.054 billion and non-GAAP EPS increased 82% to $4.12.

The results also show improvement from fiscal 2016 when revenue decreased 9.2% to $2.66 billion and non-GAAP EPS decreased to $2.26 from $4.57.

A recent CNBC report discusses the opportunity and investment in Seagate versus Micron (NASDAQ:MU).

Disclosure: I do not hold any shares of Seagate Technology.

About the author:

Julie Young
Julie Young is a financial journalist with comprehensive experience in the financial services industry. She primarily writes about financial market news and economic trends. Julie holds a Master of Science degree in finance from Boston College and a Bachelor of Science degree in finance from the University of Arkansas.

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