STX has pulled back to a historically bullish moving average
The shares of Seagate Technology Holdings Inc (NASDAQ:STX) ended the year with 10-straight weekly gains, during which time the computer hardware name saw a Dec. 14 one-year high of $87.93. Though STX is already down 4% since the start of the year, it might be time to buy the dip on the tech stock.
The slow start to 2024 has Seagate Technology stock within one standard deviation of its 50-day moving average, a trendline that has been bullish in the past. Over the past three years, STX has seen six similar signals, after which the stock was higher one month later 67% of the time, averaging a 6.3% gain. Over the past year, the security is up 45.3% already.
A round of overdue upgrades could lift the shares as well, considering STX's healthy year-over-year gain of 46%; 10 of the 16 in coverage carry a "hold" or worse rating. Plus, the 12-month consensus price target of $72.50 is an 11.7% discount to current levels, leaving room for price-target hikes as well.
Furthermore, though short interest has been unwinding, it still represents 6.1% of the stock's available float. And would take shorts over five days to cover their bets, at STX's average pace of trading.