Western Digital (NASDAQ:WDC) Stock Falls 5% – Here’s What Happened

Western Digital Corporation (NASDAQ:WDC) traded down 5% during trading on Friday. The stock traded as low as $286.54 and last traded at $295.65. Approximately 4,760,147 shares traded hands during mid-day trading, a decline of 45% from the average daily volume of 8,668,227 shares. The stock had previously closed at $311.21.

Wall Street Analysts Forecast Growth

WDC has been the subject of a number of recent research reports. Robert W. Baird set a $900.00 price target on shares of Western Digital in a research note on Friday, October 23rd. Cantor Fitzgerald lowered their target price on shares of Western Digital from $900.00 to $625.00 and set an “overweight” rating for the company in a report on Friday, October 23rd. Susquehanna set a $405.00 price target on shares of Western Digital in a research report on Friday, October 23rd. BNP Paribas Exane raised their price objective on Western Digital from $660.00 to $700.00 and gave the stock an “outperform” rating in a research note on Thursday, August 6th. Finally, TD Cowen cut their price target on shares of Western Digital from $540.00 to $430.00 and set a “buy” rating on the stock in a research note on Friday, October 23rd. Two analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $591.04.

Western Digital Price Performance

The firm has a 50-day moving average of $394.64 and a 200 day moving average of $420.18. The stock has a market capitalization of $110.67 billion, a price-to-earnings ratio of 11.47, a PEG ratio of 1.11 and a beta of 2.27.

Western Digital (NASDAQ:WDC) last issued its earnings results on Thursday, October 22nd. The data storage provider reported $4.64 earnings per share for the quarter, topping analysts’ consensus estimates of $4.11 by $0.53. The business 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 firm’s revenue for the quarter was up 55.5% on a year-over-year basis. During the same period in the previous year, the company earned $1.78 earnings per share. On average, equities analysts forecast that Western Digital Corporation will post 23.62 earnings per share for the current year.

Western Digital Increases Dividend

The firm also recently announced 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 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date of this dividend is Friday, December 4th. This is a boost from Western Digital’s previous quarterly dividend of $0.15. Western Digital’s payout ratio is presently 2.33%.

Insider Activity

In other news, insider Vidyadhara Gubbi sold 1,795 shares of the stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $459.87, for a total value of $825,466.65. Following the transaction, the insider directly owned 80,571 shares of the company’s stock, valued at $37,052,185.77. This represents a 2.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Cynthia Tregillis sold 1,007 shares of the firm’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $478.36, for a total transaction of $481,708.52. Following the sale, the insider owned 112,155 shares of the company’s stock, valued at $53,650,465.80. This trade represents a 0.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 5,436 shares of company stock worth $2,440,664 over the last three months. Insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Western Digital

A number of hedge funds have recently added to or reduced their stakes in WDC. Legal & General Group Plc bought a new position in shares of Western Digital in the second quarter worth about $1,602,927,000. ABS Investment Management LLC bought a new position in Western Digital during the 2nd quarter worth $1,226,342,000. Anther Capital Ltd acquired a new position in shares of Western Digital in the second quarter worth approximately $901,601,000. Deutsche Bank AG bought a new stake in shares of Western Digital in the 2nd quarter valued at $885,565,000. Finally, Trivest Advisors Ltd bought a new position in Western Digital during the second quarter worth $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.