Seagate Technology Holdings (NASDAQ:STX) is surging higher this morning, last seen up 17.3% to trade at $679.37, earlier tapping a fresh record high of $687. Although yesterday's OpenAI setback left some hesitation looming, Seagate Technology stock is bringing back some optimism this morning. The company issued a stronger-than-expected revenue and profit forecast for its fiscal fourth quarter, on the back of a fiscal third-quarter earnings and revenue beat.
Analysts have been quick to respond, with no fewer than 11 handing out a price-target hike, the highest coming from Rosenblatt Securities to $1,000 from $500. Heading into today brokerages were already heavily bullish toward the stock, with just four of the 25 in coverage sporting a "hold" recommendation.
The stock is extending last week's record-breaking run up the charts, today eyeing its best daily performance since Jan. 28. STX has soared over 709% in the past year alone, with long-term support stemming from the 80-day moving average.
Options traders have been flocking toward the equity this morning. So far 16,000 calls and 16,000 puts have been exchanged, six times the average daily rate. Most popular is the weekly 5/1 800-strike call, with the 700-strike call from the same series trailing closely behind. Both contracts are seeing opening activity.
The data storage company's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 85 out of 100, too. This indicates STX has tended to exceed option traders' volatility expectations during the past year.
