Whenever a company struggles there is often times a period where the stock becomes grossly oversold. Is this the case with Seagate Technology PLC (NASDAQ:STX)? As the company witnesses a decline in earnings, the stock has tumbled considerably. Currently trading at a trailing PE of 6.6, and paying a dividend in excess of 9%, the stock appears to be oversold.
Although analysts expect 2016 to produce less profits for Seagate Technology PLC (NASDAQ:STX) than 2015 had, after this year the majority of analysts see growth returning. While 2016 may be a bit rough, there is no reason to believe that the company can not continue paying their $0.63 per quarter dividend, and perhaps even raise that dividend going into 2017. Shares have dropped well over 50% on the year, while at the same time the dividend has increased more than 15%.
Hard drives are not going anywhere, and solid state drives will continue to rake in the cash. The company should grow considerably over the next five years and has been returning a majority of those profits to shareholders via buy backs and dividends. The stock increased 1.34% or $0.37 on January 22, hitting $27.93. About 8.35 million shares traded hands or up 71.46% from the average. STX has declined 48.41% since June 18, 2015 and is currently downtrending. It has underperformed the S&P500 by 39.54%.
The institutional sentiment decreased to 0.68 in Q2 2015. It’s down 0.40, from 1.08 in 2015Q2. The ratio fall, as 78 funds sold all their Seagate Technology PLC shares they owned while 218 reduced their positions. 42 funds bought stakes while 160 increased their total positions. Institutions now own 225.24 million shares which is 14.33% less than the previous share count of 262.91 million in 2015Q2.
Trinity Street Asset Management Llp holds 9.99% of its total portfolio in Seagate Technology PLC, equating to 816,925 shares. Karamaan Group Llc owns 119,287 shares representing 5.55% of their total US portfolio. Moreover, Moon Capital Management Lp has 4.45% of their total portfolio invested in the company, equating to 168,994 shares. The California-based Sensato Investors Llc has a total of 4.37% of their portfolio invested in the stock. Hamlin Capital Management Llc, a New York-based fund reported 1.21 million shares owned.
Since March 4, 2015, the stock had 0 insider purchases, and 3 insider sales for a total of $6.48 million in net activity. O Malley Patrick J sold 6,993 shares worth $337,633. Re Mark sold 115,334 shares worth $5.62 million. Pimentel Albert A sold 10,000 shares worth $516,680. Luczo Stephen J sold 10,000 shares worth $541,448. The insider Dehaan Douglas J sold 10,179 shares worth $594,133.
Seagate Technology plc is a well-known provider of electronic data storage products. The company has a market cap of $8.24 billion. The Company’s products are hard disk drives (HDD). It has 6.66 P/E ratio. The Firm produces a range of electronic data storage products, including solid state hybrid drives (SSHD), solid state drives (SSD), peripheral component interconnect express (PCIe) cards and Serial AT Attachment (SATA) controllers.