Western Digital (NASDAQ:WDC) Stock Price Down 1.5% - Here's Why

Key Points

• Western Digital shares fell 1.5% to $462 amid profit-taking in memory stocks, despite broader optimism about AI-driven demand for storage and NVIDIA’s reported $279 billion memory commitment.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $534.56; JPMorgan recently raised its target to $650. Western Digital also exceeded quarterly earnings and revenue estimates, with EPS up sharply year over year.
• The company plans to exchange approximately $191 million of convertible notes for cash and shares, potentially reducing debt but creating dilution. Recent insider selling may also weigh on investor sentiment.

Western Digital Corporation (NASDAQ:WDC - Get Free Report)'s stock price dropped 1.5% on Thursday . The stock traded as low as $443.02 and last traded at $462.00. 7,534,950 shares were traded during mid-day trading, a decline of 15% from the average daily volume of 8,823,615 shares. The stock had previously closed at $468.88.

Trending Headlines about Western Digital

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

• Positive Sentiment: NVIDIA’s reported $279 billion memory commitment reinforces expectations that AI infrastructure, cloud computing and data-intensive workloads will support long-term demand for storage products. Western Digital remains among the companies viewed as beneficiaries of this trend. Micron Lags Despite NVIDIA’s $279B Memory Commitment; Western Digital Drops 4%, SK Hynix Ticks Up
• Positive Sentiment: Analyst coverage remains generally favorable. Articles cite bullish brokerage recommendations, upward earnings-estimate revisions and a median price target of about $597.50, while Zacks identifies WDC as a potential beneficiary of momentum in AI, cloud, automotive and IoT storage demand. Is It Worth Investing in Western Digital (WDC) Based on Wall Street’s Bullish Views?
• Neutral Sentiment: Western Digital disclosed agreements to exchange approximately $191 million of 3.00% convertible notes due 2028 for cash and common shares. The transaction may reduce debt, but issuing shares could create dilution. What’s Going on With Western Digital Stock on Wednesday?
• Negative Sentiment: Memory stocks, including WDC, are falling even as semiconductor shares broadly advance. Investors appear to be unwinding an extended and crowded memory trade, taking profits after substantial gains and weighing company-specific risks against AI optimism. Why Are Memory Stocks Falling Despite Nvidia’s Results?
• Negative Sentiment: Recent insider-trading data shows selling rather than buying by company insiders, which may weigh on sentiment, although the transactions do not necessarily indicate a change in business fundamentals.

Analysts Set New Price Targets

Several analysts recently commented on WDC shares. 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. Jefferies Financial Group set a $575.00 target price on shares of Western Digital in a report on Tuesday, May 26th. The Goldman Sachs Group reiterated a "neutral" rating and set a $400.00 price target on shares of Western Digital in a research report on Friday, May 1st. Citigroup lowered their price target on Western Digital from $800.00 to $740.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Finally, UBS Group dropped their price objective on Western Digital from $560.00 to $525.00 and set a "neutral" rating for the company in a research note on Thursday, August 6th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $534.56.

Western Digital Stock Performance

The firm has a fifty day simple moving average of $538.41 and a 200 day simple moving average of $438.22. The company has a market cap of $159.24 billion, a PE ratio of 19.08 and a beta of 2.14.

Western Digital (NASDAQ:WDC - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $3.56 earnings per share 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 business had revenue of $3.75 billion for the quarter, compared to analyst estimates of $3.70 billion. During the same period in the prior year, the firm posted $1.66 EPS. The company's revenue was up 43.8% on a year-over-year basis. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. As a group, equities analysts predict that Western Digital Corporation will post 19.65 EPS for the current fiscal year.

Western Digital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Tuesday, September 8th will be issued a $0.15 dividend. The ex-dividend date is Tuesday, September 8th. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. Western Digital's dividend payout ratio (DPR) is presently 2.48%.

Insider Buying and Selling at Western Digital

In other Western Digital news, insider Vidyadhara K. Gubbi sold 2,475 shares of the business's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $556.24, for a total transaction of $1,376,694.00. Following the completion of the sale, the insider owned 85,154 shares of the company's stock, valued at approximately $47,366,060.96. The trade was a 2.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Cynthia L. Tregillis sold 684 shares of the company's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $446.17, for a total value of $305,180.28. Following the sale, the insider owned 112,146 shares of the company's stock, valued at $50,036,180.82. This represents a 0.61% 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. Over the last 90 days, insiders sold 24,634 shares of company stock valued at $11,357,073. Company insiders own 0.18% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Dogwood Wealth Management LLC lifted its stake in shares of Western Digital by 28.6% in the 2nd quarter. Dogwood Wealth Management LLC now owns 90 shares of the data storage provider's stock valued at $57,000 after purchasing an additional 20 shares during the last quarter. Legacy Wealth Asset Management LLC increased its position in shares of Western Digital by 1.0% during the 2nd quarter. Legacy Wealth Asset Management LLC now owns 2,302 shares of the data storage provider's stock valued at $1,470,000 after purchasing an additional 22 shares during the last quarter. Everpar Advisors LLC increased its position in shares of Western Digital by 1.8% during the 2nd quarter. Everpar Advisors LLC now owns 1,442 shares of the data storage provider's stock valued at $921,000 after purchasing an additional 25 shares during the last quarter. Ares Financial Consulting LLC increased its position in shares of Western Digital by 45.5% during the 2nd quarter. Ares Financial Consulting LLC now owns 80 shares of the data storage provider's stock valued at $51,000 after purchasing an additional 25 shares during the last quarter. Finally, Dynamic Advisor Solutions LLC raised its holdings in Western Digital by 2.1% during the 2nd quarter. Dynamic Advisor Solutions LLC now owns 1,390 shares of the data storage provider's stock valued at $888,000 after buying an additional 28 shares during the period. Hedge funds and other institutional investors own 92.51% of the company's stock.

About Western Digital

Western Digital Corporation is a global data storage company that designs, manufactures and sells a broad range of storage devices and systems for personal, enterprise and cloud applications. Headquartered in San Jose, California, the company develops hard disk drives (HDDs), solid-state drives (SSDs), NAND flash components and finished storage products used in PCs, external storage, servers, network-attached storage (NAS) and embedded systems.

Its product portfolio spans consumer and commercial markets, including internal and external HDDs and SSDs, removable flash memory products and storage platforms for data center and enterprise environments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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