Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of disk drive maker Seagate
So what: The company announced a $0.18-per-share dividend and said it expected revenue of $2.7 billion in its fiscal third quarter, above estimates. Analysts tripped over themselves running to increase price targets for the stock. Stifel Nicolaus and Barclays both kept hold ratings but were among the companies increasing price targets.
Now what: The dividend shows management's confidence in earnings because management never wants to cancel or lower a dividend. With the new dividend and an 8.4 forward P/E ratio, Seagate looks like a nice value. The stock has pulled back a little throughout the day, but I think this is a great catalyst for longer-term momentum for Seagate.
Interested in more info on Seagate? Add it to your watchlist.