Western Digital (NASDAQ:WDC) Shares Up 9.9% - Still a Buy?

Key Points

• Western Digital shares rose 9.9% on Monday, closing at $289.78 after reaching an intraday high of $293.39.
• The company reported quarterly EPS of $4.64, beating the $4.11 consensus, while revenue of $4.38 billion topped estimates and grew 55.5% year over year.
• Analysts maintain a consensus “Moderate Buy” rating with a $591.04 target price; Western Digital also raised its quarterly dividend from $0.15 to $0.175 per share.

Western Digital Corporation (NASDAQ:WDC - Get Free Report) shares traded up 9.9% during trading on Monday. The company traded as high as $293.39 and last traded at $289.78. Approximately 8,372,282 shares were traded during trading, a decline of 4% from the average session volume of 8,714,944 shares. The stock had previously closed at $263.78.

Analyst Ratings Changes

A number of analysts have weighed in on WDC shares. Bank of America increased their price target on Western Digital from $720.00 to $800.00 and gave the stock a "buy" rating in a report on Wednesday, October 21st. UBS Group restated a "buy" rating and set a $625.00 target price on shares of Western Digital in a research report on Friday, October 23rd. Wells Fargo & Company cut their target price on Western Digital from $730.00 to $450.00 and set an "overweight" rating on the stock in a research report on Friday, October 16th. Rosenblatt Securities decreased their target price on Western Digital from $800.00 to $650.00 and set a "buy" rating for the company in a research note on Friday, October 23rd. Finally, BNP Paribas Exane lifted their target price on Western Digital from $660.00 to $700.00 and gave the stock an "outperform" rating in a report on Thursday, August 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $591.04.

Western Digital Trading Up 9.9%

The firm has a market cap of $108.47 billion, a price-to-earnings ratio of 11.24, a P/E/G ratio of 0.93 and a beta of 2.27. The firm's 50-day moving average is $406.75 and its 200-day moving average is $418.97.

Western Digital (NASDAQ:WDC - Get Free Report) last released its quarterly earnings data on Thursday, October 22nd. The data storage provider reported $4.64 earnings per share for the quarter, topping the consensus estimate of $4.11 by $0.53. The firm had revenue of $4.38 billion for the quarter, compared to the consensus estimate of $4.14 billion. Western Digital had a net margin of 69.20% and a return on equity of 55.62%. The business's revenue was up 55.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.78 earnings per share. Analysts forecast that Western Digital Corporation will post 23.62 EPS for the current fiscal year.

Western Digital Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Friday, December 4th will be issued a dividend of $0.1750 per share. This represents a $0.70 annualized dividend and a yield of 0.2%. This is an increase from Western Digital's previous quarterly dividend of $0.15. The ex-dividend date is Friday, December 4th. Western Digital's dividend payout ratio is currently 2.72%.

Insider Activity at Western Digital

In other Western Digital news, insider Cynthia L. Tregillis sold 807 shares of Western Digital stock in a transaction on Wednesday, October 21st. The shares were sold at an average price of $380.00, for a total transaction of $306,660.00. Following the transaction, the insider directly owned 108,928 shares of the company's stock, valued at $41,392,640. The trade was a 0.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Irving Tan sold 20,000 shares of the company'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 sale, the chief executive officer owned 575,966 shares of the company's stock, valued at approximately $256,287,591.02. The trade was a 3.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 25,436 shares of company stock valued at $11,340,064. 0.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Western Digital

Several hedge funds have recently modified their holdings of WDC. Legal & General Group Plc bought a new position in Western Digital in the 2nd quarter valued at $1,602,927,000. ABS Investment Management LLC purchased a new position in shares of Western Digital in the 2nd quarter worth about $1,226,342,000. Anther Capital Ltd purchased a new position in shares of Western Digital in the 2nd quarter worth about $901,601,000. Deutsche Bank AG bought a new position in Western Digital during the second quarter valued at about $885,565,000. Finally, Trivest Advisors Ltd purchased a new stake in Western Digital during the second quarter worth about $627,606,000. Institutional investors own 92.51% of the company's stock.

About Western Digital

Western Digital Corporation NASDAQ: WDC develops and supplies hard disk drives (HDDs) and related data-storage products. Its drives serve data centers and cloud providers, as well as businesses and consumers who need storage for computers, network-attached storage systems, surveillance and other applications. Its product brands include WD and Ultrastar.

Founded in 1970, the company began as an electronics and semiconductor business before expanding into data storage. In February 2025, Western Digital completed the separation of its flash-memory business into the independently traded SanDisk Corporation, leaving Western Digital focused on HDDs.

Western Digital serves customers around the world.

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