STX
Seagate Technology (NASDAQ: STX) rose over 6% after agreeing to a $175-million settlement to resolve...
Article Summary
HOLD- Seagate Technology (NASDAQ: STX) rose over 6% after agreeing to a $175-million settlement to resolve shareholder claims related to its sales of hard disk drives to Huawei.
- Seagate Technology Holdings has set aside $105 million for the settlement, with insurers expected to cover roughly $70 million.
- The proposed class-action lawsuit was filed against Seagate chief executive Dave Mosley and chief financial officer Gianluca Romano, alleging the company concealed more than $1.1 billion in hard drive sales to Huawei, inflating profits and its stock price.
- The settlement follows a record $300 million penalty Seagate paid in 2023 to resolve related export-control allegations.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 28.9% | 25% | 75.0 ptsVery Good (28.9%) - Solid growth |
| EPS Growth Next 5Y ? | 69.1% | 25% | 100.0 ptsExceptional (69.1%) - Very high expectations |
| Target Price Upside ? | 8.4% | 20% | 10.0 ptsNear/At Target (8.4%) - Target: $843.59 vs Current: $921.26 |
| Gross Margin % ? | 41.5% | 15% | 60.0 ptsSolid (41.5%) - Decent margins |
| Drawdown from 52-Wk High ? | 1.8% | 15% | 20.0 ptsBarely a Dip (1.8%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About STX
- Seagate Technology Holdings plc engages in the provision of data storage technology and infrastructure solutions in Singapore, the United States, the Netherlands, and internationally.
- The company offers mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives.
- It also offers legacy applications comprising Mission Critical HDDs and SSDs; external storage solutions under the Seagate Ultra Touch, One Touch, Expansion, and Basics product lines, as well as under the LaCie brand name; desktop drives for personal computers and workstation applications; notebook drives traditional notebooks, convertible systems, and external storage applications, DVR HDDs for video streaming applications, and gaming SSDs for gaming rigs.
- In addition, the company provides Lyve edge-to-cloud mass capacity platform, that includes modular hardware and software to support enterprises' on-premise and cloud storage infrastructure needs.
- It sells its products primarily to original equipment manufacturers, distributors, and retailers.
- The company was founded in 1978 and is based in Singapore.