Western Digital (NASDAQ:WDC) Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Western Digital from “Strong Buy” to “Hold,” although broader analyst sentiment remains “Moderate Buy,” with an average price target of $534.56.
• Western Digital shares opened at $411.04, down 6.9%, and remain well below their 50-day and 200-day moving averages amid concerns about increased HDD capacity and competition.
• The company reported stronger-than-expected quarterly results, including $3.56 in EPS, $3.75 billion in revenue and 43.8% year-over-year revenue growth; it guided to fiscal Q1 2027 EPS of $3.85–$4.15.

Western Digital (NASDAQ:WDC - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday, Zacks reports.

A number of other research analysts have also recently commented on the stock. Morgan Stanley reissued an "overweight" rating and set a $676.00 target price on shares of Western Digital in a research report on Thursday, August 6th. Citigroup dropped their price target on shares of Western Digital from $800.00 to $740.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. UBS Group decreased their price objective on shares of Western Digital from $560.00 to $525.00 and set a "neutral" rating for the company in a research report on Thursday, August 6th. Cantor Fitzgerald upped their price objective on shares of Western Digital from $660.00 to $900.00 and gave the company an "overweight" rating in a research report on Monday, June 29th. Finally, Robert W. Baird set a $630.00 target price on Western Digital in a research report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $534.56.

Western Digital Trading Down 6.9%

Shares of NASDAQ WDC opened at $411.04 on Monday. The stock has a fifty day moving average price of $462.94 and a 200 day moving average price of $473.39. Western Digital has a 12-month low of $112.52 and a 12-month high of $799.87. The company has a market cap of $141.68 billion, a P/E ratio of 16.98, a P/E/G ratio of 1.87 and a beta of 2.11.

Western Digital (NASDAQ:WDC - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $3.56 EPS for the quarter, topping analysts' consensus estimates of $3.31 by $0.25. The company had revenue of $3.75 billion for the quarter, compared to analysts' expectations of $3.70 billion. Western Digital had a return on equity of 48.15% and a net margin of 72.95%.The firm's quarterly revenue was up 43.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.66 earnings per share. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. On average, sell-side analysts forecast that Western Digital will post 19.65 EPS for the current fiscal year.

Insider Buying and Selling at Western Digital

In other news, insider Vidyadhara K. Gubbi sold 1,795 shares of Western Digital stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $459.87, for a total value of $825,466.65. Following the completion of the transaction, the insider directly owned 80,571 shares of the company's stock, valued at approximately $37,052,185.77. The trade was a 2.18% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Cynthia L. Tregillis sold 432 shares of the stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $451.20, for a total transaction of $194,918.40. Following the sale, the insider owned 111,030 shares in the company, valued at approximately $50,096,736. This trade represents a 0.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 25,437 shares of company stock worth $11,461,345 over the last 90 days. Insiders own 0.18% of the company's stock.

Hedge Funds Weigh In On Western Digital

Several institutional investors have recently made changes to their positions in WDC. Dogwood Wealth Management LLC boosted its holdings in shares of Western Digital by 28.6% in the second quarter. Dogwood Wealth Management LLC now owns 90 shares of the data storage provider's stock valued at $57,000 after buying an additional 20 shares during the period. Legacy Wealth Asset Management LLC raised its holdings in shares of Western Digital by 1.0% during the second quarter. Legacy Wealth Asset Management LLC now owns 2,302 shares of the data storage provider's stock worth $1,470,000 after acquiring an additional 22 shares during the period. Everpar Advisors LLC raised its holdings in shares of Western Digital by 1.8% during the second quarter. Everpar Advisors LLC now owns 1,442 shares of the data storage provider's stock worth $921,000 after acquiring an additional 25 shares during the period. Ares Financial Consulting LLC lifted its position in Western Digital by 45.5% in the 2nd quarter. Ares Financial Consulting LLC now owns 80 shares of the data storage provider's stock valued at $51,000 after acquiring an additional 25 shares in the last quarter. Finally, Dynamic Advisor Solutions LLC lifted its position in Western Digital by 2.1% in the 2nd quarter. Dynamic Advisor Solutions LLC now owns 1,390 shares of the data storage provider's stock valued at $888,000 after acquiring an additional 28 shares in the last quarter. 92.51% of the stock is owned by institutional investors.

Western Digital News Roundup

Here are the key news stories impacting Western Digital this week:

• Positive Sentiment: Analysts previously characterized Toshiba’s planned production expansion as manageable, arguing that the HDD market remains undersupplied and that Toshiba would still trail Western Digital and Seagate in scale. This helped support a rebound in WDC shares during the prior session. Western Digital and Seagate shares bounce back as analysts downplay the Toshiba threat
• Positive Sentiment: Western Digital’s latest reported quarter showed strong fundamentals: earnings and revenue exceeded consensus estimates, revenue increased 43.8% year over year, and management issued first-quarter fiscal 2027 earnings guidance of $3.85–$4.15 per share.
• Neutral Sentiment: The AI infrastructure buildout continues to drive demand for high-capacity HDD storage, creating a favorable long-term opportunity for WDC. However, investors are increasingly focused on whether new industry capacity could weaken pricing and margins. Seagate vs. Western Digital vs. Toshiba: The AI Storage War Is Getting Serious
• Negative Sentiment: Investor concerns returned after reports that Toshiba intends to expand HDD production, potentially increasing future supply and intensifying competition for AI-storage customers. The news pressured Western Digital and Seagate while leaving memory-chip stocks comparatively less affected. Western Digital Sinks as Toshiba’s Drive Expansion Hits the Group
• Negative Sentiment: Reports that Seagate and Toshiba are competing to acquire TDK’s hard-drive magnetic-heads business added another concern. Investors may view control of the only independent magnetic-recording-head supplier as a potential advantage for rivals in technology, capacity, and supply-chain control. Western Digital Stock Drops Tuesday: Here’s Why

Western Digital Company Profile

Western Digital Corporation NASDAQ: WDC develops, manufactures and supplies data-storage products and solutions. The company's portfolio is centered on hard disk drives (HDDs) used in cloud and enterprise data centers, personal computers, network-attached storage systems and other applications that require high-capacity data storage.

Western Digital markets products under brands including Western Digital, WD and Ultrastar. Its offerings include enterprise and data-center HDDs, storage products for business and consumer systems, and related technologies designed to help organizations store, manage and access large volumes of data.

Founded in 1970, Western Digital has evolved from a maker of electronic components into a global data-storage company.

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