STX shares are having a banner week so far
Seagate Technology PLC (NASDAQ:STX) reported upbeat preliminary fiscal second-quarter revenue last night, hours after the stock gapped higher amid reports the firm invested in cryptocurrency concern Ripple. As a result, STX stock received a flurry of bullish analyst attention this morning, with no fewer than five brokerage firms upping their price targets, including to $56 from $50 at Craig Hallum -- territory not charted in two years. The news has the data storage specialist stock up 1.1% to trade at $46.55.
Yesterday, the equity had its best session since an earnings beat on Oct. 23, and today is set for its highest close since April. Since falling to an annual low of $30.60 on Aug. 23, STX has tacked on 52%, and has outperformed the broader S&P 500 Index (SPX) by 27 percentage points during the past three months. The shares' steady climb has been aided by their 20-day moving average, which has served as support since early September.
Despite Seagate Technology's recent strength both on and off the charts, most analysts remain skeptical. Of the 21 brokerages that cover STX, 18 rate the shares a "hold" or worse. Furthermore, STX's average 12-month price target of $42.82 sits below the stock's current perch. This implies there is room for upgrades and additional price-target hikes down the road.
A short squeeze could provide even more fuel for STX. The 42.45 million shares sold short is the highest since September, and represents nearly 15% of the stock's total available float. At STX's average daily trading volume, it would take over nine days for shorts to fully cover their positions.