Semiconductor Stock Could Buck Sector Woes, Says Analyst

The equity has been outperforming many of its sector peers in 2021

Digital Content Manager
Aug 16, 2021 at 10:47 AM
facebook X logo linkedin

The shares of Seagate Technology Holdings PLC (NASDAQ:STX) are up 1.7% at $91.81 this morning, following an upgrade from UBS to "buy" from "neutral." The analyst noted Seagate's structural changes in its hard disk drives (HDD) segment, as well as strong cyclical dynamics, and lifted its price target to $105 from $83.

STX is up 46.6% in 2021 already, while many other sector giants, including Micron (MU) and Western Digital (WDC) have struggled this year in comparison. in fact, the same analyst slashed its price target on WDC to $66 from $72. A look at Seagate stock's technical setup shows the 200-day moving average now emerging as potential support. 

Sentiment looks mixed from the brokerage bunch. Of the 17 covering STX, six still say "hold." The 12-month consensus price target of $104, meanwhile, is a 13.1% premium to current levels. 

An unwinding of pessimism in the options pits could push STX higher. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 50-day put/call volume ratio that stands higher than all but 1% of readings from the past 12 months. This implies options traders are picking up puts at a much quicker-than-usual clip. 

These options can be had at a relative bargain right now too, per STX's Schaeffer's Volatility Index (SVI) of 30%, which stands higher than just 11% of annual readings, meaning options traders are pricing in low volatility expectations at the moment. Plus, the stock's Schaeffer's Volatility Scorecard (SVS) sits at 86 out of a possible 100. This suggests the stock tends to outperform these expectations. 


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI