Western Digital (NASDAQ:WDC) Stock Price Down 5.3% – Should You Sell?

Western Digital Corporation (NASDAQ:WDC)’s stock price was down 5.3% during mid-day trading on Tuesday . The stock traded as low as $466.80 and last traded at $488.74. Approximately 7,708,566 shares changed hands during trading, a decline of 17% from the average daily volume of 9,316,881 shares. The stock had previously closed at $515.83.

Key Western Digital News

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

• Positive Sentiment: Western Digital was named to the 2026 S&P Dow Jones Best-in-Class Index North America for the first time, highlighting its ESG performance and leadership in sustainable AI infrastructure. WD Named to 2026 S&P Dow Jones Best‑in‑Class Index North America, Recognizing Leadership in Sustainable AI Infrastructure
• Positive Sentiment: Multiple reports point to WDC riding an AI storage boom, with strong earnings, rising hyperscaler demand, and aggressive shareholder returns after the SanDisk split. WDC’s Whopping 893% Run in a Year: Buy the Stock Amid AI Storage Boom?
• Positive Sentiment: Memory chip stocks, including Western Digital, have been rising on momentum tied to AI demand and the view that storage is a critical constraint in data-center buildouts. SNDK, MU: Why Are AI Memory Chip Stocks Rising Today, 05/13/26?
• Neutral Sentiment: Broader market commentary also noted Western Digital among the recent high-momentum stocks, reflecting strong investor interest rather than a company-specific new catalyst. 2 Momentum Stocks to Consider Right Now and 1 That Underwhelm
• Negative Sentiment: One sector-risk report flagged WDC’s broader industry as vulnerable ahead of a policy change, which could temper some of the recent enthusiasm if macro conditions weaken. 3 Sectors That Look Most Vulnerable Ahead of May 15 (WDC)

Wall Street Analyst Weigh In

Several research analysts have issued reports on WDC shares. Susquehanna restated a “neutral” rating and set a $285.00 target price on shares of Western Digital in a research report on Friday, February 6th. Weiss Ratings restated a “buy (b-)” rating on shares of Western Digital in a research report on Friday, May 1st. Cantor Fitzgerald boosted their target price on Western Digital to $660.00 and gave the company an “overweight” rating in a research report on Friday, May 1st. JPMorgan Chase & Co. boosted their target price on Western Digital from $320.00 to $400.00 and gave the company an “overweight” rating in a research report on Thursday, April 16th. Finally, Robert W. Baird boosted their target price on Western Digital from $310.00 to $450.00 and gave the company an “outperform” rating in a research report on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $395.83.

Western Digital Price Performance

The stock has a market cap of $168.60 billion, a PE ratio of 29.20 and a beta of 2.10. The business has a fifty day moving average of $347.73 and a 200-day moving average of $255.19.

Western Digital (NASDAQ:WDC) last announced its quarterly earnings results on Thursday, April 30th. The data storage provider reported $2.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.39 by $0.33. The firm had revenue of $3.34 billion during the quarter, compared to analyst estimates of $3.25 billion. Western Digital had a return on equity of 42.95% and a net margin of 55.29%.Western Digital’s quarterly revenue was up 45.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.36 earnings per share. Western Digital has set its Q4 2026 guidance at 3.100-3.400 EPS. As a group, equities research analysts predict that Western Digital Corporation will post 9.57 EPS for the current year.

Western Digital Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 17th. Investors of record on Friday, June 5th will be issued a $0.15 dividend. The ex-dividend date is Friday, June 5th. This is a positive change from Western Digital’s previous quarterly dividend of $0.13. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. Western Digital’s dividend payout ratio (DPR) is presently 2.99%.

Insider Activity at Western Digital

In related news, insider Cynthia L. Tregillis sold 363 shares of the business’s stock in a transaction that occurred on Tuesday, April 21st. The stock was sold at an average price of $377.09, for a total value of $136,883.67. Following the completion of the sale, the insider owned 120,023 shares in the company, valued at approximately $45,259,473.07. The trade was a 0.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Irving Tan sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $411.84, for a total transaction of $8,236,800.00. Following the completion of the transaction, the chief executive officer directly owned 598,150 shares of the company’s stock, valued at $246,342,096. This trade represents a 3.24% decrease in their position. 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. Over the last quarter, insiders sold 53,679 shares of company stock worth $18,049,314. Company insiders own 0.18% of the company’s stock.

Hedge Funds Weigh In On Western Digital

Large investors have recently bought and sold shares of the business. Mirae Asset Global Investments Co. Ltd. increased its position in shares of Western Digital by 12.3% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 52,317 shares of the data storage provider’s stock worth $6,281,000 after purchasing an additional 5,731 shares in the last quarter. LBP AM SA acquired a new position in shares of Western Digital during the third quarter worth $641,000. AustralianSuper Pty Ltd acquired a new position in shares of Western Digital during the third quarter worth $34,244,000. NorthCrest Asset Manangement LLC increased its position in shares of Western Digital by 75.4% during the fourth quarter. NorthCrest Asset Manangement LLC now owns 9,465 shares of the data storage provider’s stock worth $1,778,000 after purchasing an additional 4,068 shares in the last quarter. Finally, Cantor Fitzgerald L. P. increased its position in shares of Western Digital by 399.8% in the 3rd quarter. Cantor Fitzgerald L. P. now owns 32,487 shares of the data storage provider’s stock valued at $3,900,000 after acquiring an additional 25,987 shares during the period. 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.