Western Digital (NASDAQ:WDC) Shares Down 4.7% - Time to Sell?

Key Points

• Western Digital's stock dropped4.7% on Monday, closing at $120.26, with trading volume down 43% from its average.
• Analysts have mixed views on the stock, with one Strong Buy, seventeen Buy, and five Hold ratings, resulting in a consensus target price of $108.65.
• The company has a market cap of $41.66 billion and reported $4.10 billion in revenue, with an anticipated 4.89 EPS for the current year.

Western Digital Corporation (NASDAQ:WDC - Get Free Report)'s stock price fell 4.7% on Monday . The company traded as low as $120.22 and last traded at $120.26. 4,632,431 shares changed hands during trading, a decline of 43% from the average session volume of 8,194,318 shares. The stock had previously closed at $126.20.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on WDC. Loop Capital increased their price target on shares of Western Digital from $92.00 to $150.00 and gave the company a "buy" rating in a report on Thursday. Weiss Ratings reiterated a "hold (c)" rating on shares of Western Digital in a research note on Wednesday, October 8th. Citigroup lifted their target price on Western Digital from $110.00 to $135.00 and gave the stock a "buy" rating in a report on Monday, October 13th. Rosenblatt Securities upped their price target on Western Digital from $90.00 to $125.00 and gave the company a "buy" rating in a report on Monday, September 29th. Finally, Sanford C. Bernstein upgraded Western Digital to a "hold" rating in a report on Tuesday, September 16th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $108.65.

Western Digital Stock Performance

The company has a market cap of $41.66 billion, a P/E ratio of 23.60, a P/E/G ratio of 1.06 and a beta of 1.77. The company has a quick ratio of 0.84, a current ratio of 1.08 and a debt-to-equity ratio of 0.47. The business has a fifty day simple moving average of $99.35 and a two-hundred day simple moving average of $70.10.

Western Digital (NASDAQ:WDC - Get Free Report) last issued its quarterly earnings data on Monday, April 7th. The data storage provider reported $1.78 earnings per share for the quarter. The firm had revenue of $4.10 billion for the quarter. Western Digital had a net margin of 14.13% and a return on equity of 24.93%. On average, sell-side analysts anticipate that Western Digital Corporation will post 4.89 EPS for the current year.

Western Digital Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, September 18th. Investors of record on Thursday, September 4th were given a dividend of $0.10 per share. The ex-dividend date was Thursday, September 4th. This represents a $0.40 annualized dividend and a yield of 0.3%. Western Digital's payout ratio is 7.77%.

Insider Buying and Selling

In other news, SVP Gene M. Zamiska sold 353 shares of the firm's stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $80.90, for a total value of $28,557.70. Following the transaction, the senior vice president owned 27,425 shares of the company's stock, valued at $2,218,682.50. This trade represents a 1.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Cynthia L. Tregillis sold 14,067 shares of the business's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $74.78, for a total value of $1,051,930.26. Following the transaction, the insider owned 135,351 shares of the company's stock, valued at approximately $10,121,547.78. This trade represents a 9.41% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 49,730 shares of company stock worth $3,921,594. Corporate insiders own 0.18% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of WDC. Private Wealth Management Group LLC raised its holdings in Western Digital by 102.5% during the second quarter. Private Wealth Management Group LLC now owns 399 shares of the data storage provider's stock valued at $26,000 after acquiring an additional 202 shares during the period. Rakuten Securities Inc. raised its stake in Western Digital by 4,070.0% during the 2nd quarter. Rakuten Securities Inc. now owns 417 shares of the data storage provider's stock valued at $27,000 after purchasing an additional 407 shares during the period. NewSquare Capital LLC lifted its holdings in Western Digital by 86.9% in the 2nd quarter. NewSquare Capital LLC now owns 441 shares of the data storage provider's stock worth $28,000 after purchasing an additional 205 shares in the last quarter. Zions Bancorporation National Association UT purchased a new position in Western Digital in the 1st quarter worth approximately $29,000. Finally, Grove Bank & Trust bought a new position in Western Digital in the 3rd quarter worth approximately $30,000. Institutional investors own 92.51% of the company's stock.

Western Digital Company Profile

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.

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