FREMONT, Calif. - Seagate Technology (NASDAQ:STX) Holdings plc (NASDAQ:STX), known for its mass-capacity data storage solutions, today announced the appointment of Jim Lee as its new senior vice president, chief legal officer, and corporate secretary.
Lee brings to Seagate a substantial background in legal affairs, most recently serving as senior vice president, general counsel, and corporate secretary at Maxar Technologies (NYSE:MAXR). His five-year tenure at Maxar was marked by enhancements to the company's legal and compliance functions, a robust litigation track record, and key roles in complex transactions. Prior to that, Lee spent nearly 15 years at Aramark Corporation in various leadership capacities.
Lee's academic credentials include a J.D. from Harvard Law School and a B.A. in economics from Yale University, equipping him with a strong foundation for his responsibilities at Seagate.
Dave Mosley, Seagate's CEO, expressed confidence in Lee's capabilities, stating that his extensive experience and comprehensive legal knowledge are well-suited for Seagate, especially as the company aims to capitalize on the increasing opportunities presented by data growth.
Seagate Technology, with a history spanning over 45 years, has shipped more than four billion terabytes of data capacity. The company's wide array of storage devices, systems, and services are designed to meet the needs of data storage from edge to cloud.
The information regarding Jim Lee's appointment and his qualifications is based on a press release statement from Seagate Technology Holdings plc.
In other recent news, Seagate Technology has been the focus of several major financial institutions. Mizuho, for instance, upgraded Seagate's stock target to $110 while maintaining a buy rating. The firm anticipates increased demand from cloud and enterprise sectors, with revenue and earnings per share (EPS) estimates for the June quarter at $1.85 billion and $0.70 respectively.
Citi also initiated coverage on Seagate's stock with a Buy rating, citing a recovery in the hard disk drive (HDD) market and anticipated demand growth driven by artificial intelligence (AI). TD Cowen also reiterated a Buy rating for Seagate, highlighting the company's guidance as aligning with expectations.
These developments follow Seagate's recent Q3 earnings report, which showed a significant increase in revenue and EPS. The company anticipates this trend to persist due to improving demand in cloud and enterprise markets. Seagate is also progressing with the development of two high-capacity product families, which are expected to contribute substantially to the company's performance in the upcoming fiscal year.
These recent developments underscore the financial institutions' confidence in Seagate's future profitability and the anticipated growth in earnings driven by the demand for its products and technological advancements.
InvestingPro Insights
As Seagate Technology Holdings plc (NASDAQ:STX) welcomes Jim Lee to its executive team, the company faces a challenging landscape in the data storage industry. According to InvestingPro insights, analysts are forecasting a sales decline in the current year, which underscores the importance of strategic leadership in navigating market headwinds. Moreover, Seagate's gross profit margins have been weak, sitting at 20.95% over the last twelve months as of Q3 2024, highlighting the need for operational efficiency and cost management.
Despite these challenges, Seagate remains a prominent player in the Technology Hardware, Storage & Peripherals industry and has demonstrated a commitment to shareholder returns, maintaining dividend payments for 14 consecutive years, with a recent dividend yield of 2.91%. This commitment is reflected in the company's price total return over the last year, which stands at an impressive 63.98%, suggesting investor confidence in Seagate's long-term value proposition.
Investors considering Seagate's stock will note that it is trading near its 52-week high, at 94.91% of the peak, with a previous close price of 96.11 USD. For those looking for more in-depth analysis, InvestingPro offers additional InvestingPro Tips for Seagate, providing valuable insights into the company's financial health and market position. Users can access these tips and utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing their investment research toolkit.
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