Trade-Ideas LLC identified

Seagate Technology

(

STX

) as a pre-market leader 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 $200.5 million.
  • STX traded 12,201 shares today in the pre-market hours as of 9:00 AM.
  • STX is up 5.6% 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 9.6%. STX has a PE ratio of 5. Currently there are 7 analysts that rate Seagate Technology a buy, 4 analysts rate it a sell, and 12 rate it a hold.

TST Recommends

The average volume for Seagate Technology has been 4.7 million shares per day over the past 30 days. Seagate Technology has a market cap of $8.3 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.12 and a short float of 10.8% with 4.14 days to cover. Shares are down 24.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Seagate Technology as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and generally higher debt management risk.

Highlights from the ratings report include:

  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, SEAGATE TECHNOLOGY PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $824.00 million or 36.87% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.31%.
  • The revenue fell significantly faster than the industry average of 25.3%. Since the same quarter one year prior, revenues fell by 22.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for SEAGATE TECHNOLOGY PLC is currently lower than what is desirable, coming in at 29.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.16% significantly trails the industry average.
  • 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 91.1% when compared to the same quarter one year ago, falling from $381.00 million to $34.00 million.

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