Seagate's Stock Plunges Toward Worst Day In Seven Years, On Heavy Volume

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.