Western Digital Corporation (NASDAQ:WDC) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts remain broadly positive: Twenty-five brokerages give Western Digital a consensus “Moderate Buy” rating, including 17 buys and two strong buys, with an average 12-month price target of $534.56.
• Recent results exceeded expectations: Quarterly EPS came in at $3.56 versus the $3.31 consensus, while revenue rose 43.8% year over year to $3.75 billion. The company also issued first-quarter 2027 EPS guidance of $3.85–$4.15.
• Insider selling contrasts with strong institutional ownership: Insiders sold 25,437 shares worth about $11.5 million during the last quarter, while institutional investors own 92.51% of Western Digital’s outstanding stock.

Shares of Western Digital Corporation (NASDAQ:WDC - Get Free Report) have been given an average rating of "Moderate Buy" by the twenty-five brokerages that are presently covering the firm, Marketbeat reports. Six analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and two have issued a strong buy rating on the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $534.56.

Several research firms recently issued reports on WDC. Wells Fargo & Company upped their price target on Western Digital from $575.00 to $730.00 and gave the company an "overweight" rating in a research report on Friday, July 10th. Mizuho set a $590.00 target price on shares of Western Digital in a report on Thursday, August 6th. TD Cowen raised their price target on shares of Western Digital from $500.00 to $540.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Robert W. Baird set a $630.00 price target on shares of Western Digital in a report on Thursday, August 6th. Finally, Cantor Fitzgerald raised their price target on Western Digital from $660.00 to $900.00 and gave the stock an "overweight" rating in a report on Monday, June 29th.

Insider Buying and Selling at Western Digital

In other Western Digital news, CEO Irving Tan sold 20,000 shares of the business's stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $444.97, for a total transaction of $8,899,400.00. Following the completion of the transaction, the chief executive officer owned 575,966 shares in the company, valued at approximately $256,287,591.02. The trade was a 3.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Cynthia Tregillis sold 432 shares of Western Digital stock in a transaction dated Friday, September 4th. The shares were 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 represents a 0.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 25,437 shares of company stock valued at $11,461,345 in the last quarter. Corporate insiders own 0.18% of the company's stock.

Institutional Investors Weigh In On Western Digital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mowery & Schoenfeld Wealth Management LLC acquired a new position in shares of Western Digital during the 2nd quarter valued at $28,000. Dunhill Financial LLC acquired a new stake in shares of Western Digital in the second quarter valued at $29,000. Stonehage Fleming Financial Services Holdings Ltd bought a new position in Western Digital during the second quarter valued at about $31,000. Gables Capital Management Inc. bought a new position in Western Digital during the second quarter valued at about $32,000. Finally, Ares Financial Consulting LLC grew its holdings in Western Digital by 45.5% during the second quarter. Ares Financial Consulting LLC now owns 80 shares of the data storage provider's stock worth $51,000 after acquiring an additional 25 shares during the period. Institutional investors own 92.51% of the company's stock.

Key Stories Impacting Western Digital

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

• Positive Sentiment: Western Digital’s latest quarterly results remain a key support: revenue grew 44% year over year, earnings exceeded expectations, margins expanded and cash generation was strong. Its first-quarter 2027 earnings outlook also implied continued substantial year-over-year growth. Western Digital rises as investors weigh strong fundamentals, debt cleanup, and a firmer storage trade
• Positive Sentiment: The company’s plan to redeem its remaining 3.00% convertible notes due in 2028 is being viewed favorably because it could simplify the capital structure and reduce future dilution. The notes became redeemable after WDC’s share price surpassed the required threshold, signaling sustained investor confidence. What’s Going On With Western Digital Stock Friday?
• Positive Sentiment: Strength in storage peers, particularly SanDisk, Micron and the broader AI-infrastructure trade, provided a favorable read-through for WDC. Investors continue to anticipate durable demand for data-center storage driven by artificial intelligence. Analysts’ recent price targets also remain generally above the current trading level. SanDisk Jumps as Storage Bid Concentrates in One Name; Western Digital Rises, Micron Ticks Up
• Neutral Sentiment: Recent commentary comparing WDC with SanDisk highlights different exposure to HDDs and NAND flash, as well as varying margins and risks. This reinforces the long-term AI-storage opportunity but also underscores that the companies’ growth profiles are not identical. Western Digital vs. SanDisk: Which Storage Stock Is the Better Bet?
• Negative Sentiment: Insider trading data is a cautionary signal: reported open-market insider activity over the past six months consisted entirely of sales, with no purchases. In addition, WDC recently experienced a pullback and has traded below its 50-day and 200-day moving averages, indicating ongoing volatility despite the improving fundamentals.

Western Digital Stock Performance

Shares of Western Digital stock opened at $441.36 on Friday. The firm has a market cap of $152.13 billion, a PE ratio of 18.23, a price-to-earnings-growth ratio of 1.80 and a beta of 2.13. The firm's 50-day simple moving average is $479.41 and its 200-day simple moving average is $457.05. Western Digital has a 1 year low of $105.32 and a 1 year high of $799.87.

Western Digital (NASDAQ:WDC - Get Free Report) last posted its quarterly earnings results 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 business had revenue of $3.75 billion during the quarter, compared to the consensus estimate of $3.70 billion. Western Digital had a return on equity of 48.15% and a net margin of 72.95%.The company's revenue for the quarter was up 43.8% compared to the same quarter last year. During the same period last year, the firm earned $1.66 earnings per share. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. On average, equities analysts predict that Western Digital will post 19.65 earnings per share for the current year.

Western Digital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Shareholders of record on Tuesday, September 8th were paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend was Tuesday, September 8th. Western Digital's payout ratio is presently 2.48%.

About Western Digital

Western Digital Corporation NASDAQ: WDC develops, manufactures and sells data storage products and solutions for data centers, cloud service providers, enterprises, businesses and consumers. Its portfolio is centered on hard disk drives (HDDs), including high-capacity enterprise drives used in cloud and data center environments, as well as products for network-attached storage, surveillance and personal computing.

The company markets products under brands including Western Digital, WD, WD_BLACK and Ultrastar.

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