Seagate shares fall after Wells Fargo cuts price target

Seagate Technology shares dropped 5.3% in morning trading Friday, reaching a session low of $652.70, after Wells Fargo analyst Joseph Quatrochi reduced his price target to $865 from $1,180 while keeping an Overweight rating on the stock.

The price target reduction came after a steep multi-week selloff in the stock. Seagate previously rallied from a 52-week low of $209 to a peak of $1,145.

Sector concerns have grown following reports that Toshiba plans to approximately double its mass-capacity hard drive production with an investment of around $380 million. The planned capacity expansion has raised questions about supply-demand balance and nearline pricing in the hard disk drive market.

Insider selling totaling hundreds of millions of dollars over the past three months has added to investor concerns about the stock's valuation levels.

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