Seagate Technology PLC's stock plunged toward its worst day since the depths of the Great Recession, in very active morning trade Thursday, after the disk-drive maker cut its fiscal third-quarter revenue and margin outlook. The stock tumbled 19%, the biggest one-day percentage decline since it fell 24% on Jan. 22, 2009. The biggest decline, since the company went public in Dec. 2002, was a 24.5% drop on Oct. 22, 2003. Trading volume reached 28 million shares within the first 90 minutes of Thursday's regular session, or about six times the full-day average over the past 30 days of 4.7 million shares, according to FactSet. The company cut late Wednesday its revenue outlook for the current quarter to $2.6 billion from $2.7 billion, and its adjusted gross margin outlook to 23% from 25.6%. Pacific Crest analyst Monika Garg said her sector weight rating is now under review, as Seagate margins have been below its target range of 27% to 32% for the past three quarters.
Copyright © 2016 MarketWatch, Inc.