Seagate Technology (NASDAQ:STX) shares fell to a 52-week-low Tuesday as the hard-disk drive and storage technology company got caught up in negativity around rival Western Digital (NASDAQ:WDC).
Seagate (STX) was down by 2.5%, at $59.81 a share after earlier dropping to $59.22 a share, its lowest point in a year. While stocks on the whole were down in a broad market selloff spurred on by expectations that the Federal Open Market Committee will raise interest rates at its two-day meeting which kicked off Tuesday.
However, Seagate’s (STX) situation wasn’t helped by the situation with Western Digital (WDC). Deutsche Bank analyst Sidney Ho cut his rating on Western Digital (WDC) to hold from buy, and took down his price target on that company’s stock to $40 a share from $56.
Ho said Western Digital (WDC) is likely to report fiscal first-quarter results that will fall short of Wall Street expectations, and that it is facing an “uncertain” path towards business recovery. Western Digital (WDC) shares were down by 2.7% heading toward the market close.
Seagate (STX) has been facing investors’ skepticism for some time, as it recently cut its sales outlook due to what company officials said were “dynamic” market conditions affecting its business.