Western Digital (NASDAQ:WDC) Shares Down 1.4% - Here's Why

Key Points

• Western Digital shares fell 1.4% to $405.42 amid broader pressure on technology stocks from higher Treasury yields and a weaker market. Competition concerns tied to Toshiba’s HDD expansion and uncertainty over supply-chain control also weighed on the stock.
• The company reported strong quarterly results, with EPS of $3.56 and revenue of $3.75 billion, up 43.8% year over year and above analyst estimates. AI-driven demand for high-capacity data storage remains a potential long-term growth driver.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $534.56, although Zacks downgraded the stock to “Hold” and technical indicators remain bearish.

Western Digital Corporation (NASDAQ:WDC - Get Free Report)'s share price was down 1.4% on Wednesday. The stock traded as low as $397.02 and last traded at $405.42. 7,151,892 shares were traded during mid-day trading, a decline of 17% from the average session volume of 8,641,803 shares. The stock had previously closed at $411.04.

Trending Headlines about Western Digital

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

• Positive Sentiment: The artificial-intelligence boom is generating substantial demand for economical, high-capacity data storage, supporting the long-term outlook for HDD manufacturers. Western Digital could benefit if AI-related storage demand translates into sustained orders. Seagate vs. Western Digital: Which HDD Stock Has More Room to Run?
• Positive Sentiment: Some analysts continue to see significant upside after the recent decline, arguing that rising storage demand and improving industry fundamentals may create a buying opportunity. Western Digital Fell Nearly 20% Over The Last 3 Months
• Neutral Sentiment: A weaker technology tape and sharply higher Treasury yields are pressuring growth and technology shares broadly. Upcoming Federal Reserve minutes could add further volatility by influencing interest-rate expectations. Stock Market Today: Dow Tumbles 500 Points
• Negative Sentiment: Investors are concerned that Toshiba’s planned HDD-capacity expansion could increase future competition and weaken pricing or market-share expectations for Western Digital and Seagate. A reported bidding contest involving Seagate and TDK’s magnetic-heads business is adding to uncertainty over industry supply-chain control. Seagate, Western Digital stocks slip as Toshiba's AI storage push rattles sector
• Negative Sentiment: Unlike Micron and SanDisk, which have secured much of their output in advance, Western Digital is viewed as having less protection from near-term supply tightness. That explains why WDC has lagged the memory rally. SanDisk and Micron Rise as Tight Memory Supply Outruns a Softer Tech Tape
• Negative Sentiment: Zacks Research downgraded Western Digital from “strong buy” to “hold,” while technical commentary warns that the stock remains in a bearish trend after retreating substantially from its high. Western Digital Rating Lowered to Hold at Zacks Research

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on WDC shares. Susquehanna boosted their target price on Western Digital from $360.00 to $500.00 and gave the stock a "neutral" rating in a report on Wednesday, July 8th. Weiss Ratings raised Western Digital from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, September 28th. Bank of America upped their price target on shares of Western Digital from $610.00 to $732.00 and gave the stock a "buy" rating in a research note on Wednesday, July 1st. JPMorgan Chase & Co. raised their price objective on shares of Western Digital from $530.00 to $650.00 and gave the company an "overweight" rating in a research note on Friday, June 12th. Finally, Melius Research set a $1,050.00 target price on shares of Western Digital and gave the stock a "buy" rating in a report on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $534.56.

Western Digital Stock Down 1.4%

The stock has a market capitalization of $139.74 billion, a P/E ratio of 16.75, a P/E/G ratio of 1.87 and a beta of 2.11. The business has a fifty day moving average price of $462.94 and a 200-day moving average price of $473.39.

Western Digital (NASDAQ:WDC - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $3.56 EPS for the quarter, beating the consensus estimate 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%.Western Digital's revenue was up 43.8% compared to the same quarter last year. During the same period last 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, equities analysts expect that Western Digital Corporation will post 19.65 earnings per share for the current fiscal year.

Western Digital Announces Dividend

The business 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. 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 2.48%.

Insider Buying and Selling at Western Digital

In other news, 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 transaction of $194,918.40. Following the transaction, the insider directly owned 111,030 shares of the company's stock, valued at $50,096,736. This represents a 0.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Irving Tan sold 20,000 shares of the firm's stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $444.97, for a total value 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. This trade represents a 3.36% decrease in their ownership of the stock. 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. In the last ninety days, insiders sold 25,437 shares of company stock worth $11,461,345. Insiders own 0.18% of the company's stock.

Hedge Funds Weigh In On Western Digital

Institutional investors have recently made changes to their positions in the business. Legal & General Group Plc purchased a new stake in Western Digital in the 2nd quarter worth $1,602,927,000. Anther Capital Ltd purchased a new position in shares of Western Digital in the second quarter valued at about $901,601,000. Deutsche Bank AG bought a new position in shares of Western Digital in the second quarter worth about $885,565,000. Value Aligned Research Advisors LLC purchased a new stake in shares of Western Digital during the first quarter worth about $350,403,000. Finally, Trivest Advisors Ltd bought a new stake in Western Digital during the 2nd quarter valued at approximately $627,606,000. Institutional investors own 92.51% of the company's stock.

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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