Western Digital (NASDAQ:WDC) Shares Down 6.9% – Time to Sell?

Western Digital Corporation (NASDAQ:WDC) shares dropped 6.9% on Friday. The stock traded as low as $331.81 and last traded at $332.00. 7,937,417 shares traded hands during trading, a decline of 8% from the average session volume of 8,649,698 shares. The stock had previously closed at $356.45.

Western Digital News Summary

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

• Positive Sentiment: Wells Fargo said the recent selloff in Western Digital and Seagate shares was “well overdone” and maintained a bullish view, even after lowering its price target. The firm cited strong underlying demand for data-center storage. Seagate and Western Digital Stocks Fall on Toshiba Fears. Wells Fargo Is Still Bullish.
• Positive Sentiment: Western Digital is expected to report fiscal first-quarter results on October 22. Analysts are watching for revenue growth of roughly 45%, supported by accelerating AI and cloud-storage demand, with the company’s existing guidance calling for $3.85–$4.15 in EPS. Western Digital Pre-Q1 Earnings: Buy the Stock Now or Wait for Results?
• Neutral Sentiment: A discounted 2TB WD portable external drive could support consumer demand, but the promotion is unlikely to materially affect Western Digital’s financial results. WD Goes All-In on Its 2TB Portable External Hard Drive
• Negative Sentiment: Investors are concerned that Toshiba’s planned hard-disk-drive capacity expansion could increase future supply and pressure pricing just as Western Digital and Seagate are benefiting from strong AI-related demand. Higher interest-rate risks and questions about the sustainability of hyperscaler capital spending are adding pressure. Seagate, Western Digital Face Supply Risks as AI Demand Drives Capacity Expansion
• Negative Sentiment: Western Digital and other memory stocks are being pressured by reports that a Chinese competitor is developing server-memory products, raising fears of new competition in an AI infrastructure market that had supported elevated valuations. Analysts have also questioned whether Western Digital is approaching a cyclical peak and suggested Seagate may offer the stronger trade. Memory Stocks Extend Selloff on China Competition Fears

Analysts Set New Price Targets

WDC has been the subject of a number of analyst reports. Fox Advisors lowered shares of Western Digital from an “overweight” rating to an “equal weight” rating in a research note on Monday, June 22nd. Morgan Stanley reaffirmed an “overweight” rating and issued a $676.00 price objective (up from $650.00) on shares of Western Digital in a report on Thursday, August 6th. Robert W. Baird set a $630.00 target price on shares of Western Digital in a research report on Thursday, August 6th. Citigroup lowered their target price on shares of Western Digital from $800.00 to $740.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Finally, Summit Insights downgraded Western Digital from a “buy” rating to a “hold” rating in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, Western Digital currently has a consensus rating of “Moderate Buy” and an average price target of $608.26.

Western Digital Stock Performance

The company has a market cap of $124.27 billion, a PE ratio of 13.71, a PEG ratio of 1.54 and a beta of 2.11. The company has a 50 day simple moving average of $444.89 and a two-hundred day simple moving average of $477.85.

Western Digital (NASDAQ:WDC) last posted its quarterly earnings results on Wednesday, August 5th. The data storage provider reported $3.56 earnings per share for the quarter, topping analysts’ consensus estimates of $3.31 by $0.25. Western Digital had a net margin of 72.95% and a return on equity of 48.15%. The business had revenue of $3.75 billion for the quarter, compared to the consensus estimate of $3.70 billion. During the same period in the prior year, the business posted $1.66 earnings per share. Western Digital’s revenue for the quarter was up 43.8% compared to the same quarter last year. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. As a group, analysts expect that Western Digital Corporation will post 19.65 earnings per share for the current fiscal year.

Western Digital Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Investors of record on Tuesday, September 8th were given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 0.2%. The ex-dividend date was Tuesday, September 8th. Western Digital’s dividend payout ratio (DPR) is 2.48%.

Insider Activity at Western Digital

In other news, insider Cynthia L. Tregillis sold 1,007 shares of the business’s stock in a transaction 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 completion of the sale, the insider owned 112,155 shares in the company, valued at $53,650,465.80. The trade was a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Irving Tan sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $444.97, for a total value of $8,899,400.00. Following the completion of the transaction, the chief executive officer owned 575,966 shares in the company, valued at approximately $256,287,591.02. This represents a 3.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 25,437 shares of company stock valued at $11,461,345 in the last ninety days. Insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Western Digital

Institutional investors have recently made changes to their positions in the stock. Dogwood Wealth Management LLC grew its position in shares of Western Digital by 28.6% in the 2nd quarter. Dogwood Wealth Management LLC now owns 90 shares of the data storage provider’s stock valued at $57,000 after purchasing an additional 20 shares during the period. Legacy Wealth Asset Management LLC lifted its stake in Western Digital by 1.0% in the second quarter. Legacy Wealth Asset Management LLC now owns 2,302 shares of the data storage provider’s stock valued at $1,470,000 after buying an additional 22 shares in the last quarter. Everpar Advisors LLC boosted its holdings in shares of Western Digital by 1.8% in the second quarter. Everpar Advisors LLC now owns 1,442 shares of the data storage provider’s stock valued at $921,000 after buying an additional 25 shares during the period. Ares Financial Consulting LLC increased its position in shares of Western Digital by 45.5% during the second quarter. Ares Financial Consulting LLC now owns 80 shares of the data storage provider’s stock worth $51,000 after acquiring an additional 25 shares in the last quarter. Finally, Dynamic Advisor Solutions LLC increased its position in shares of Western Digital by 2.1% during the second quarter. Dynamic Advisor Solutions LLC now owns 1,390 shares of the data storage provider’s stock worth $888,000 after acquiring an additional 28 shares in the last quarter. 92.51% of the stock is owned by institutional investors and hedge funds.

Western Digital Company Profile

Western Digital Corporation (NASDAQ: WDC) develops, manufactures and supplies data-storage products and solutions. The company’s portfolio is centered on hard disk drives (HDDs) used in cloud and enterprise data centers, personal computers, network-attached storage systems and other applications that require high-capacity data storage.

Western Digital markets products under brands including Western Digital, WD and Ultrastar. Its offerings include enterprise and data-center HDDs, storage products for business and consumer systems, and related technologies designed to help organizations store, manage and access large volumes of data.

Founded in 1970, Western Digital has evolved from a maker of electronic components into a global data-storage company.