WDC - Seagate Technology: Challenged By Lack Of Growth

2023-04-24 23:27:10 ET

Summary

• Seagate is a dominant player in the market for producing data storage equipment.
• The company has demonstrated a strong capacity to return cash to shareholders through buybacks and dividends. Financial performance has been declining recently, though.
• With less free cash flow available, a very challenging growth environment, and increasing interest rates, I find STX stock overvalued based on discounted dividend models.
• The company had a US address of 900 Disc Drive. If you don't see the fun in that, maybe you'll find owning the stock more entertaining.

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