Western Digital Corporation (WDC) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts remain broadly bullish: Twenty-one of 28 brokerages rate Western Digital a buy, one recommends strong buy, and six rate it a hold, producing a “Moderate Buy” consensus. The average 12-month price target is $618.63, though targets range widely, including UBS’s $470 and Cantor Fitzgerald’s $900.
• AI and data-center demand are supporting growth: Western Digital recently beat earnings and revenue estimates, with revenue up 43.8% year over year, while strong demand for high-capacity drives and AI-related storage is expected to drive further earnings growth.
• Key risks include pricing and competition: UBS cited uncertainty over HDD production capacity and future pricing, while rising Chinese competition and substantial insider selling could weigh on investor sentiment and margins.

Shares of Western Digital Corporation (NASDAQ:WDC - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the twenty-eight brokerages that are covering the company, MarketBeat.com reports. Six research analysts have rated the stock with a hold rating, twenty-one have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $618.63.

Several analysts have recently weighed in on WDC shares. Cantor Fitzgerald increased their price target on shares of Western Digital from $660.00 to $900.00 in a research note on Thursday, August 6th. JPMorgan Chase & Co. lifted their price target on shares of Western Digital from $650.00 to $715.00 and gave the company an "overweight" rating in a research report on Thursday, July 16th. Robert W. Baird set a $630.00 price target on shares of Western Digital in a research report on Thursday, August 6th. Wells Fargo & Company upped their price objective on Western Digital from $575.00 to $730.00 and gave the company an "overweight" rating in a report on Friday, July 10th. Finally, UBS Group lowered their price objective on Western Digital from $525.00 to $470.00 and set a "neutral" rating for the company in a research report on Monday.

Key Western Digital News

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

• Positive Sentiment: Western Digital’s recent growth story remains supported by strong demand for high-capacity drives, cloud infrastructure, and AI-related data storage. Analysts expect substantial year-over-year earnings growth in the upcoming report, while management previously projected approximately $4.1 billion in revenue and about $4.00 in non-GAAP EPS. Earnings Preview: What To Expect From Western Digital's Report
• Positive Sentiment: Longer-term investor interest is being driven by the view that AI data-center expansion will require increasingly large storage capacity, potentially sustaining demand and pricing for Western Digital’s products. Is Western Digital’s AI-Fueled Outlook Reframing Its Role in Cloud Infrastructure Leadership?
• Neutral Sentiment: Investors are focused on the company’s fiscal first-quarter results, with reports indicating an earnings release later in October. The key questions will be whether strong demand and margins are holding up and whether fiscal 2027 growth expectations remain achievable. Should You Buy Sandisk Stock Before Oct. 29?
• Negative Sentiment: UBS cut its price target while maintaining a neutral rating, citing uncertainty about hard-disk-drive production capacity and future pricing. Investors are concerned that less favorable storage pricing could pressure Western Digital’s margins and make its recent momentum difficult to sustain. Western Digital slides as price-target cut and HDD supply concerns weigh on shares
• Negative Sentiment: Western Digital declined alongside major semiconductor and memory stocks after China’s CXMT highlighted progress in denser server-chip designs. The development revived concerns about intensifying Chinese competition, elevated AI-investment requirements, and the sustainability of current industry valuations. US chip stocks slide as China’s CXMT advances
• Negative Sentiment: Reported insider activity showed substantially more selling than buying over the past six months, adding another cautionary signal for investors ahead of earnings.

Insider Buying and Selling at Western Digital

In other news, insider Vidyadhara Gubbi sold 1,795 shares of the company's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $459.87, for a total value of $825,466.65. Following the transaction, the insider owned 80,571 shares of the company's stock, valued at $37,052,185.77. This represents a 2.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Cynthia Tregillis sold 432 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $451.20, for a total value of $194,918.40. Following the transaction, the insider owned 111,030 shares of the company's stock, 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 worth $11,461,345 over the last quarter. 0.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Legal & General Group Plc purchased a new stake in shares of Western Digital in the 2nd quarter valued at approximately $1,602,927,000. ABS Investment Management LLC acquired a new stake in Western Digital in the 2nd quarter valued at approximately $1,226,342,000. Anther Capital Ltd acquired a new stake in Western Digital in the 2nd quarter valued at approximately $901,601,000. Deutsche Bank AG acquired a new stake in Western Digital in the 2nd quarter valued at approximately $885,565,000. Finally, Trivest Advisors Ltd purchased a new stake in Western Digital in the second quarter valued at approximately $627,606,000. Hedge funds and other institutional investors own 92.51% of the company's stock.

Western Digital Trading Down 1.6%

Shares of WDC stock opened at $380.71 on Wednesday. Western Digital has a twelve month low of $112.52 and a twelve month high of $799.87. The company's 50-day moving average price is $449.90 and its 200-day moving average price is $476.64. The stock has a market cap of $142.51 billion, a price-to-earnings ratio of 15.73, a PEG ratio of 1.64 and a beta of 2.11.

Western Digital (NASDAQ:WDC - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $3.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.31 by $0.25. Western Digital had a net margin of 72.95% and a return on equity of 48.15%. The firm had revenue of $3.75 billion during the quarter, compared to analysts' expectations of $3.70 billion. During the same period last year, the business earned $1.66 earnings per share. Western Digital's revenue was up 43.8% compared to the same quarter last year. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. As a group, equities research analysts predict that Western Digital will post 19.65 EPS for the current year.

Western Digital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Shareholders of record on Tuesday, September 8th were given a $0.15 dividend. The ex-dividend date was Tuesday, September 8th. This represents a $0.60 dividend on an annualized basis and a yield of 0.2%. Western Digital's payout ratio is currently 2.48%.

About Western Digital

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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