Seagate's CEO banked $75.6m in September; the bigger buyback waits for 2027
Seagate closed the last of its 2028 exchangeable notes on 8 September. Within days its CEO sold $75.6 million of stock under tax withholding and its CFO cashed roughly $38 million under an April trading plan; the bigger buyback is the part dated 2027.
Vincent Jiang · 3 min read
The debt cleanup closed on 8 September
Seagate's disk-drive subsidiary settled the last $150.7 million of 3.50% exchangeable notes due 2028 on 8 September, paying about $150.97 million in cash and delivering 1,647,862 ordinary shares 1. The redemption caps a fiscal 2026 that retired $1.4 billion of debt to end at $3.6 billion, grew revenue 34% to $12.2 billion and set a $3.1 billion free-cash-flow record 2. Holders got $810 million back: $634 million in dividends, $176 million in buybacks 2.
Buybacks were the smallest use of fiscal 2026's record cash
Data
| Value | |
|---|---|
| Free cash flow | $3.1B |
| Debt retired | $1.4B |
| Dividends | $634M |
| Buybacks | $176M |
The Form 4s explain the selling, mechanically
On 14 September, 177,000 performance units granted to chief executive William Mosley in September 2023 vested 3. He sold 97,889 shares the next day at a weighted average $772.14, about $75.6 million, in what his Form 4 calls an issuer-mandated sell-to-cover solely to satisfy tax withholding 3.
Chief financial officer Gianluca Romano exercised 50,498 options on 11 September, at strikes from $64.31 to $158.40, and sold 45,898 shares that day in trades priced $818.88 to $843.95, roughly $38 million, all under a Rule 10b5-1 plan adopted 30 April 2026 4. MarketScreener's ledger adds four insider sales totaling $4,682,187 filed 11 September and one of $7,163,926 on 26 August 5.
The 2027 date lives in a narrative, not a filing
What holders trade on is a buyback that "significantly increases" from 2027, in the words of the most-followed Simply Wall St narrative 6. The redemption notice and the earnings release carry no such date, only fiscal 2026 actuals 12.
Zacks cut the stock from Strong Buy to Hold on 30 September, two months after a quarter of 48.5% revenue growth and non-GAAP EPS of $5.71 against a $5.10 consensus 72. The trackers split: MarketBeat counts 22 buy ratings, one strong buy and four holds, averaging $986 7; MarketScreener's 25 analysts average $1,125 5.
Revenue has climbed five straight quarters, and the FQ1 guide extends the run
- Revenue
- Estimate
Data
| Revenue | |
|---|---|
| Q4 '24 | $2.33B |
| Q1 '25 | $2.16B |
| Q2 '25 | $2.44B |
| Q3 '25 | $2.63B |
| Q4 '25 | $2.83B |
| Q1 '26 | $3.11B |
| Q2 '26 | $3.63B |
| Q3 '26 guide (estimate) | $4.1B ($4.0–4.2B) |
The filings explain the selling; nothing explains the wait
The bull receipts are unchanged: a nearline drive shortfall of roughly 300 exabytes this year, widening to about 400 in 2027 and 2028, at blended pricing of $14.30 to $14.90 per terabyte 6. Net margin sits at 26.1%, up from 16.3% a year ago 6, and the fiscal first-quarter guide calls for $4.1 billion of revenue and $7.30 non-GAAP EPS at the midpoint 2.
Anyone paying 64.7 times trailing earnings, against 25.4 for peers, on a $210 billion cap up 234.92% this year 65 is buying a capital-return promise dated 2027 6 that no primary filing carries 12. If 2027 holds, that buyer collects the guide; if it slips, the executives' September already settled, in cash, at $772 to $844 34.
The filings explain why they sold. Nothing on file explains why the buyback waits.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
