Seagate Technology (STX) Is Today's Pre-Market Laggard Stock
Trade-Ideas LLC identified Seagate Technology ( STX) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Seagate Technology as such a stock due to the following factors:
- STX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $209.5 million.
- STX traded 48,711 shares today in the pre-market hours as of 8:46 AM.
- STX is down 2.3% today from yesterday's close.
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More details on STX: Seagate Technology Public Limited Company designs, manufactures, and sells electronic data storage products in the Asia Pacific, the Americas, and EMEA countries. The stock currently has a dividend yield of 9.2%. STX has a PE ratio of 22. Currently there are 4 analysts that rate Seagate Technology a buy, 3 analysts rate it a sell, and 14 rate it a hold. The average volume for Seagate Technology has been 6.5 million shares per day over the past 30 days. Seagate Technology has a market cap of $8.1 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.23 and a short float of 14.5% with 3.86 days to cover. Shares are down 26.6% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Seagate Technology as a
. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins. Highlights from the ratings report include:
- STX, with its decline in revenue, slightly underperformed the industry average of 13.0%. Since the same quarter one year prior, revenues fell by 19.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- SEAGATE TECHNOLOGY PLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SEAGATE TECHNOLOGY PLC increased its bottom line by earning $5.22 versus $4.52 in the prior year. For the next year, the market is expecting a contraction of 56.9% in earnings ($2.25 versus $5.22).
- The debt-to-equity ratio is very high at 2.27 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, STX's quick ratio is somewhat strong at 1.05, demonstrating the ability to handle short-term liquidity needs.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Computers & Peripherals industry. The net income has significantly decreased by 82.4% when compared to the same quarter one year ago, falling from $933.00 million to $164.00 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 54.41%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 80.21% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- You can view the full Seagate Technology Ratings Report.
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