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 (Nasdaq: STX) jumped 10% today after the company announced it was reinstating its dividend.

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.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.