Seagate Hard Drives Ace Fixed & Portable Use Tests
Today I'm reviewing a large-cap data storage firm by the name of Seagate Technology Plc. Its trading ticker symbol is STX.
Seagate Technology PLC is a producer of hard disk drives (HDD) globally. It designs, develops, and manufactures a broad range of hard drives used in desktop PC, notebook PC, game consoles, digital video recorders, and enterprise storage markets.
The company offers external backup storage solutions under the Backup Plus and Expansion product lines, as well as under the Maxtor and LaCie brand names available in capacities up to 120 terabytes.
It sells its products primarily to original equipment manufacturers, distributors, and retailers.
Seagate Technology plc was founded in 1979 and is headquartered in Dublin, Ireland.
I use three key data points to gauge the value of any dividend equity or fund likeSeagate Technology plc. (STX):
(1) Price
(2) Dividends
(3) Returns
Besides those three, four more keyswill finally unlock an equity or fund in which to invest.
But those first three primary keys, best tell whether a company has made, is making, and will make money.
STX Price
Seaggate'sprice per share was $53.05 at yesterday's market close.A year ago its price was $31.37 for a gain of $21.68 per share.
Assuming Seaggate's price will trade in the range of $40 to $70 next year, perhaps about half that $21.68 gain could be realized in the coming year and move STX's current $53.05 price to $64.05 by late-August, 2019.
STX Dividends
Seagate's most recent quarterly dividend was $0.63declared July 30th and payable October 30th.
At that most recent quarterly pay rate, its 2018 annual dividend is calculated at $2.52 yielding 4.75% at yesterday's closing $53.05 price.
Gains For STX?
Adding the $2.52 estimated annual dividend to the $11.00 year over year theoretical price gain for STX makes a $13.52gross annual per share gain, which will be reduced by costs to trade the shares.
A little over $1,000.00 invested today at the $53.05 recent price buys 19 Seagate Technology plc. (STX) shares.
A $10 broker fee paid half at purchase and half at sale costs about $0.53 per share, subtracting that $0.53 brokerage cost from the estimated $13.52 gross gain leaves a net gain of $12.99 X 19 shares = $246.81 or a 24.5% net gain on a $1,007.95 investment.
Therefore, Seagate Technology plc.whose trading ticker symbol is STX, now shows a possible 24.5% net gain including a 4.75% dividend yield.
28 brokers cover this stock:
Four say "buy"
One says STX will "outperform" its peers.
Nineteen say "Hold" STX
Two say STX will "underperform" peers.
Finally, one says "sell" STX.
So, the analyst consensus recommendation number is 2.89 or "hold".
The price target set by those twenty-eight brokers is $6.23 under the $64.05 year over year price target I named.
Y Charts has data on this firm, too. Y Charts has rated STX "Neutral" for an overall "Y" rating; it has "good" for a value score, and "strong" for STX "2.00% over" for aHistoric Valuation score based on a historic $52.01 valuation per share.
So, you could look at all those various numbers this way, Seagate Technology Plc. (STX) has made money, is making money, and could net a 24.5%gain including a 4.75% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. Actual results remain to be seen. Results could turn out to be Seagate Technology Plc. (STX) is worth your time and money.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...
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