Seagate Technology PLC (STX) - Trading Recap

Posted on 06/05/2012 by Peter Mankowitz


NEW YORK (AVAFIN) -- A remarkable low put/call ratio alert was raised on shares of Seagate Technology PLC as revealed during the last trading session. Aggregate volume of puts was 11,170 and calls were 89,028 yielding a 0.13 put/call ratio. The increased volume of call contracts significantly surpassed put contracts 8.0:1 ratio.

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Put/Call ratio can be regarded as a predictor of investment sentiment, indicating what experienced investors are doing in preparation for a move of an underlying equity. A high put/call ratio suggests that the investor sentiment is bearish and that investors are expecting the underlying stock price to decrease. On the other hand, a low put/call ratio implies that the investor sentiment is bullish and that investors are expecting the underlying stock price to increase. Thus, unusual volume provides reliable clues that the stock is expected to make a move.

Since 1979, Seagate has designed and manufactured hard disk drives used for storing electronic information. Hard drives are used in servers, PCs, laptops, and personal entertainment players. Of the company's revenue, 65%-75% comes from original-equipment manufacturers like Hewlett-Packard, Dell, and EMC; the balance is from distributors that resell to smaller firms, as well as retail stores. Revenue is split evenly between Asia and U.S./Europe. The company is the largest producer of mission-critical enterprise drives.

Shares of Seagate Technology PLC gained $0.46 (+2.08%) to $22.60. The last trading session witnessed a low of $21.79 and high of $22.72 during the day. The current trading volume of 10M is less than average volume of 12M shares. STX is trading below the 50 day moving average and higher than the 200 day moving average. The technical momentum Relative Strength Index indicator shows oversold conditions. The stock's 52 week low is $9.05 and 52 week high is $32.55. Performance indicators show that the stock has lost -15.29% within the last quarter.

Market Snapshot (06/05/2012)
  SPX 1285.28 7.10 0.56%
  DOW 12125.0 23.50 0.19%
  NASDAQ 2778.11 18.10 0.66%
  VIX 24.85 -1.27 -4.86%

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