4 Ex-Dividend Stocks With Buy Ratings: F, ASML, FAST, STX
The hard disk drive company reported first-quarter earnings on April 17 of $1.1 billion, or $2.48 a share, up from year-earlier earnings of $93 million, or 21 cents.
"We expect Q/Q ASP declines to pick up after the June quarter," FBN Securities analysts wrote in an April 18 report. "Still, shares of STX remain attractive in spite of this as it is starting at very high pricing and GM levels and the company should be able to generate ample free cash flow during this period. Our prior call which noted tempered enthusiasm (while maintaining our Outperform rating) was based on an ASP of closer to $70 (not $73 as reported) and a GM of ~33% (vs. 37.5% reported) in FQ3. Ivy Bridge (Intel's forthcoming chipset, expected next Monday) and Windows 8 are additional PC drivers which should catalyze sales of HDDs over the coming year."
Forward Annual Dividend Yield: 3.4%
Rated "A- (Buy)" by TheStreet Ratings: The company's third-quarter gross profit margin increased from the prior year.
Seagate Technology has average liquidity. Its Quick Ratio is 1.47, which shows the company can technically meet its short-term cash needs.
In the third quarter, stockholders' net worth increased 47.72% from the prior year.
TheStreet Ratings' price target is $37.76.
-- Written by Alexandra Zendrian
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