Western Digital (NASDAQ:WDC) Sets New 12-Month High - What's Next?

Western Digital Corporation (NASDAQ:WDC - Get Free Report)'s share price reached a new 52-week high on Monday . The stock traded as high as $63.93 and last traded at $63.79, with a volume of 669866 shares trading hands. The stock had previously closed at $63.29.

Analysts Set New Price Targets

Several research firms have recently commented on WDC. Summit Insights raised shares of Western Digital from a "hold" rating to a "buy" rating in a research report on Wednesday, April 30th. JPMorgan Chase & Co. upgraded Western Digital from a "neutral" rating to an "overweight" rating and lifted their target price for the company from $45.00 to $57.00 in a research report on Thursday, May 1st. Benchmark raised Western Digital from a "hold" rating to a "buy" rating and set a $55.00 price target on the stock in a research note on Thursday, April 10th. BNP Paribas reiterated an "outperform" rating on shares of Western Digital in a report on Friday, May 16th. Finally, Loop Capital restated a "buy" rating on shares of Western Digital in a report on Tuesday, May 6th. Four equities research analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the company's stock. Based on data from MarketBeat, Western Digital presently has a consensus rating of "Moderate Buy" and a consensus price target of $63.79.

Western Digital Price Performance

The company has a 50 day moving average of $51.32 and a 200 day moving average of $52.84. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.31 and a current ratio of 1.56. The stock has a market capitalization of $22.32 billion, a price-to-earnings ratio of 12.12 and a beta of 1.48.

Western Digital (NASDAQ:WDC - Get Free Report) last announced its quarterly earnings data on Wednesday, April 30th. The data storage provider reported $1.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.30. Western Digital had a return on equity of 20.58% and a net margin of 13.33%. The business had revenue of ($1,465.00) million during the quarter, compared to analysts' expectations of $2.70 billion. During the same quarter last year, the business posted $0.63 EPS. The business's quarterly revenue was down 33.6% compared to the same quarter last year. As a group, equities research analysts anticipate that Western Digital Corporation will post 4.89 EPS for the current year.

Western Digital Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 18th. Shareholders of record on Wednesday, June 4th were given a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.63%. The ex-dividend date of this dividend was Wednesday, June 4th. Western Digital's dividend payout ratio is presently 7.58%.

Western Digital announced that its board has initiated a stock buyback program on Tuesday, May 13th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the data storage provider to repurchase up to 11.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other news, SVP Gene M. Zamiska sold 1,729 shares of the firm's stock in a transaction dated Thursday, June 5th. The stock was sold at an average price of $54.88, for a total transaction of $94,887.52. Following the sale, the senior vice president owned 40,089 shares of the company's stock, valued at approximately $2,200,084.32. This trade represents a 4.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Irving Tan sold 11,379 shares of the company's stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $48.19, for a total transaction of $548,354.01. Following the completion of the transaction, the chief executive officer owned 605,481 shares of the company's stock, valued at approximately $29,178,129.39. The trade was a 1.84% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 13,353 shares of company stock valued at $657,454. Insiders own 0.30% of the company's stock.

Institutional Trading of Western Digital

Large investors have recently made changes to their positions in the company. Zions Bancorporation National Association UT purchased a new stake in shares of Western Digital in the first quarter valued at about $29,000. OFI Invest Asset Management acquired a new stake in Western Digital during the 4th quarter worth approximately $36,000. Allworth Financial LP grew its stake in shares of Western Digital by 34.1% in the 1st quarter. Allworth Financial LP now owns 955 shares of the data storage provider's stock valued at $38,000 after purchasing an additional 243 shares during the last quarter. Elequin Capital LP acquired a new position in shares of Western Digital in the fourth quarter valued at approximately $40,000. Finally, MorganRosel Wealth Management LLC purchased a new stake in shares of Western Digital during the first quarter worth approximately $40,000. 92.51% of the stock is owned by institutional investors and hedge funds.

About Western Digital

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for desktop and notebook personal computers (PCs), gaming consoles, and set top boxes; and flash-based embedded storage products for mobile phones, tablets, notebook PCs, and other portable and wearable devices, as well as automotive, Internet of Things, industrial, and connected home applications.