History Suggests Seagate Technology Stock May Surge

Seagate stock is one of many big names expected to report earnings this week

Managing Editor
Apr 29, 2019 at 12:09 PM
facebook X logo linkedin


Data storage name Seagate Technology PLC (NASDAQ:STX) is up 0.3% at $45.11 in today's trading, moving higher as investors anticipate the company's upcoming quarterly report. STX's fiscal third-quarter results are scheduled for before the market opens tomorrow, April 30. Below, we will dive into what the options market is anticipating in terms of a post-earnings move, as well as why Seagate stock may be in store for its next leg higher.

On the charts the tech giant has seen overall improvement from its late-December lows, last seen up 16% year-to-date. And despite last week's bear gap and pullback to the $45 level, the shares have stabilized above the historically supportive 120-day moving average. 

Specifically, the security has moved within one standard deviation of its 120-day moving average after a lengthy stretch above it, per data from Schaeffer's Senior Quantitative Analyst Rocky White. Over the past three years there have been four other times this signal has sounded, resulting in an average one-month gain of 6.37% for STX stock, with a 75% success rate.

STX with 120MA

Moving onto STX's earnings history, although the tech name has closed lower the day after reporting in five of its past eight reports, as recently as early November, the stock saw a post-earnings surge of 3%. Over the past two years, the shares have swung an average of 7.2% the day after earnings, regardless of direction. This time around, the options market is pricing in a higher-than-usual 12.4% swing for Tuesday's trading. 

Lastly, short interest on the equity fell 18.7% during the past two reporting periods, and now accounts for nearly 6.1% of the stock's total available float. At STX's average pace of daily trading, it would take shorts nearly six days to buy back their bearish bets.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI