NEW YORK, NY / ACCESSWIRE / July 14, 2017 / Shares of xG Technology exploded on Thursday after the company released preliminary record revenue results for the second quarter. Shares of Seagate Technology did not fare as well after a Barclay's analyst cut his rating on the stock, sending shares into the red.

RDI Initiates Coverage on:

Seagate Technology plc
https://ub.rdinvesting.com/news/?ticker=STX

xG Technology, Inc.
https://ub.rdinvesting.com/news/?ticker=XGTI

Seagate Technology plc shares closed down 3.48% on Thursday with over 11 million shares traded. Average volume for the stock is 4.3 million shares. The hard disk drive maker saw shares drop after a Barclay's Analyst cut his rating on the stock. Mark Moskowitz, has lowered his rating on the stock from "equal weight" to "underweight" and cut his price target from $49 to $40. According to Moskowitz, the company has failed to move to the next major enterprise of hard drive capacity which is 12 terabytes, unlike competitor Western Digital (WD). He wrote, "We believe any additional margin expansion will occur at a sluggish pace or at the expense of growth." He also wrote, "As WD is already ramping 12TB Helium, we are skeptical about Seagate's capability to catch up, and this could potentially lead to some market share lost back to WD in the coming quarters. IDC data shows Seagate's market share in nearline market peaked at 53.1% in 2Q16, and since then already experienced three consecutive quarters of market share normalization to 47.9% in 1Q17, but still 600bps higher than WD's 41.9%." He explained, "Our concern is that Seagate has less experience utilizing helium-based technology compared to WD."

Access RDI's Seagate Technology plc Research Report at:
https://ub.rdinvesting.com/news/?ticker=STX

xG Technology, Inc. shares saw a big breakout on Thursday, closing the day up 23.57%. Shares began to head north after the company announced that its second quarter preliminary record revenue results were ahead of what analysts had expected. The provider of wireless video solutions to broadcast, law enforcement, and defense markets, reported record revenue for the second quarter 2017 in the range of $14.1 million and $14.5 million. This now makes it two successive quarters that the company has seen record revenues since it acquired Visilink in the first quarter.

CEO George Schmitt commented, "We are pleased to release our preliminary revenue results in response to investor inquiries. During Q2 2017, we continued to generate positive momentum in our businesses, as displayed by our achieving record quarterly revenue that exceeded both internal and external forecasts. We have successfully completed the integration of key business functions of our Vislink and IMT brands, and are increasing sales traction in both our traditional and new markets. We expect the momentum to continue into the third quarter and beyond. We look forward to sharing more details shortly when we announce our full results."

Access RDI's xG Technology, Inc. Research Report at:
https://ub.rdinvesting.com/news/?ticker=XGTI

Our Actionable Research on Seagate Technology plc (NASDAQ: STX) and xG Technology, Inc. (NASDAQ: XGTI) can be downloaded free of charge at Research Driven Investing.

Research Driven Investing

We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.

RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.

Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Nadia Noorani, CFA® charter holder. RDInvesting.com is neither a registered broker-dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

CONTACT

For any questions, inquiries, or comments reach out to us directly at:

Address:
Research Driven Investing, Unit #901 511 Avenue of the Americas, New York, NY, 10011

Email:
contact@rdinvesting.com

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: RDinvesting.com