Western Digital (NASDAQ:WDC) Trading 4.1% Higher After Analyst Upgrade

Key Points

• Western Digital's share price increased by 4.1% following an upgrade from Rosenblatt Securities, raising the price target from $90.00 to $125.00, maintaining a buy rating.
• Analysts' ratings for Western Digital are strong, with a consensus of seventeen "Buy" ratings and an average price target of $91.47, indicating positive sentiment in the market.
• The company recently reported quarterly earnings that beat expectations, with a 30% year-over-year revenue growth and earnings per share of $1.66, surpassing analyst estimates.

Western Digital Corporation (NASDAQ:WDC - Get Free Report)'s share price rose 4.1% during trading on Tuesday after Rosenblatt Securities raised their price target on the stock from $90.00 to $125.00. Rosenblatt Securities currently has a buy rating on the stock. Western Digital traded as high as $121.94 and last traded at $121.55. Approximately 2,089,686 shares changed hands during trading, a decline of 74% from the average daily volume of 7,989,126 shares. The stock had previously closed at $116.74.

Other equities analysts also recently issued reports about the company. Wells Fargo & Company raised their price objective on Western Digital from $80.00 to $95.00 and gave the company an "overweight" rating in a research note on Thursday, July 31st. Susquehanna increased their price target on shares of Western Digital from $40.00 to $62.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. Barclays increased their target price on Western Digital from $80.00 to $105.00 and gave the company an "overweight" rating in a report on Thursday, September 11th. Bank of America boosted their target price on shares of Western Digital from $123.00 to $141.00 and gave the company a "buy" rating in a research note on Wednesday, September 24th. Finally, UBS Group lifted their price target on shares of Western Digital from $45.00 to $75.00 and gave the stock a "neutral" rating in a report on Monday, July 21st. Seventeen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, Western Digital has a consensus rating of "Moderate Buy" and an average price target of $91.47.

Insider Buying and Selling

In related news, insider Cynthia L. Tregillis sold 14,067 shares of the business's stock in a transaction dated Friday, August 22nd. The stock was 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 in the company, valued at approximately $10,121,547.78. The trade was a 9.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Gene M. Zamiska sold 3,160 shares of the stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $75.68, for a total value of $239,148.80. Following the transaction, the senior vice president owned 31,560 shares of the company's stock, valued at approximately $2,388,460.80. This trade represents a 9.10% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 49,730 shares of company stock worth $3,921,594 in the last 90 days. 0.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Western Digital

Several institutional investors have recently modified their holdings of WDC. CVA Family Office LLC lifted its position in shares of Western Digital by 23.7% in the second quarter. CVA Family Office LLC now owns 904 shares of the data storage provider's stock valued at $58,000 after buying an additional 173 shares during the last quarter. Manchester Capital Management LLC lifted its holdings in Western Digital by 47.2% during the 2nd quarter. Manchester Capital Management LLC now owns 577 shares of the data storage provider's stock valued at $37,000 after purchasing an additional 185 shares during the last quarter. Forum Financial Management LP boosted its position in Western Digital by 3.4% during the second quarter. Forum Financial Management LP now owns 5,895 shares of the data storage provider's stock worth $377,000 after purchasing an additional 193 shares during the period. UMB Bank n.a. boosted its position in Western Digital by 6.2% during the second quarter. UMB Bank n.a. now owns 3,465 shares of the data storage provider's stock worth $222,000 after purchasing an additional 202 shares during the period. Finally, Private Wealth Management Group LLC increased its holdings in shares of Western Digital by 102.5% in the second quarter. Private Wealth Management Group LLC now owns 399 shares of the data storage provider's stock valued at $26,000 after purchasing an additional 202 shares during the last quarter. Institutional investors own 92.51% of the company's stock.

Western Digital Price Performance

The company's 50-day moving average price is $85.30 and its two-hundred day moving average price is $62.22. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.08 and a quick ratio of 0.84. The company has a market capitalization of $42.58 billion, a P/E ratio of 23.72, a price-to-earnings-growth ratio of 0.91 and a beta of 1.69.

Western Digital (NASDAQ:WDC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The data storage provider reported $1.66 EPS for the quarter, beating analysts' consensus estimates of $1.48 by $0.18. The business had revenue of $2.61 billion for the quarter, compared to analyst estimates of $2.45 billion. Western Digital had a net margin of 14.13% and a return on equity of 24.93%. Western Digital's quarterly revenue was up 30.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.44 EPS. Western Digital has set its Q1 2026 guidance at 1.540-1.690 EPS. As a group, sell-side analysts expect that Western Digital Corporation will post 4.89 EPS for the current year.

Western Digital Dividend Announcement

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

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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