Western Digital (NASDAQ:WDC) Shares Up 8.3% – Here’s Why

Shares of Western Digital Corporation (NASDAQ:WDC) traded up 8.3% during mid-day trading on Wednesday. The company traded as high as $319.00 and last traded at $313.31. Approximately 7,987,379 shares traded hands during mid-day trading, a decline of 8% from the average session volume of 8,701,617 shares. The stock had previously closed at $289.20.

Latest Western Digital News

Investors following WDC have been watching these news items:

• Positive Sentiment: A recent valuation analysis argues the stock may look reasonable relative to its earnings despite concerns about AI data-center spending. This could help support sentiment after the pullback, though the article also highlights the stock’s substantial prior gains and volatility. Western Digital (WDC) Stock Looks Reasonable Despite AI Data Center Fears
• Neutral Sentiment: Western Digital is included among momentum-stock picks, with the selection citing earnings growth and a record of earnings beats. This reinforces the favorable fundamentals narrative but is not a new company development. Zacks.com featured highlights include Arista, Western Digital and Quanta
• Negative Sentiment: Reported insider transactions show executives and other insiders made no open-market purchases and multiple sales over the past six months. Such selling can weigh on sentiment, although it does not by itself establish a negative outlook. Why Western Digital (WDC) Stock Is Up Today

Wall Street Analyst Weigh In

Several analysts have weighed in on WDC shares. Summit Insights downgraded Western Digital from a “buy” rating to a “hold” rating in a research note on Thursday, August 6th. Wall Street Zen cut Western Digital from a “strong-buy” rating to a “buy” rating in a research note on Saturday, October 31st. Wells Fargo & Company decreased their target price on Western Digital from $730.00 to $450.00 and set an “overweight” rating for the company in a report on Friday, October 16th. TD Cowen cut their price objective 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. Finally, JPMorgan Chase & Co. raised their target price on shares of Western Digital from $600.00 to $650.00 and gave the stock an “overweight” rating in a report on Friday, October 23rd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $591.04.

Western Digital Trading Up 8.3%

The firm’s fifty day moving average price is $400.13 and its two-hundred day moving average price is $419.44. The stock has a market capitalization of $117.28 billion, a PE ratio of 12.16, a price-to-earnings-growth ratio of 1.02 and a beta of 2.27.

Western Digital (NASDAQ:WDC) last released its quarterly earnings results on Thursday, October 22nd. The data storage provider reported $4.64 EPS for the quarter, beating the consensus estimate of $4.11 by $0.53. Western Digital had a net margin of 69.20% and a return on equity of 55.62%. The company had revenue of $4.38 billion for the quarter, compared to analyst estimates of $4.14 billion. During the same quarter last year, the business earned $1.78 earnings per share. The firm’s revenue was up 55.5% on a year-over-year basis. As a group, sell-side analysts anticipate that Western Digital Corporation will post 23.62 earnings per share for the current fiscal year.

Western Digital Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Friday, December 4th will be issued a $0.1750 dividend. This represents a $0.70 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date of this dividend is Friday, December 4th. This is a positive change from Western Digital’s previous quarterly dividend of $0.15. Western Digital’s payout ratio is currently 2.33%.

Insider Buying and Selling

In other Western Digital news, 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 value of $481,708.52. Following the sale, the insider directly owned 112,155 shares of the company’s stock, valued at approximately $53,650,465.80. This trade represents a 0.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vidyadhara Gubbi sold 1,795 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $459.87, for a total value of $825,466.65. Following the completion of the sale, the insider owned 80,571 shares of the company’s stock, valued at $37,052,185.77. This trade represents a 2.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 5,436 shares of company stock worth $2,440,664 in the last quarter. 0.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Western Digital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Mowery & Schoenfeld Wealth Management LLC acquired a new position in Western Digital during the second quarter worth $28,000. Dunhill Financial LLC acquired a new stake in shares of Western Digital in the second quarter valued at about $29,000. Valley National Advisers Inc. grew its position in shares of Western Digital by 182.6% in the third quarter. Valley National Advisers Inc. now owns 65 shares of the data storage provider’s stock valued at $30,000 after purchasing an additional 42 shares during the period. Stonehage Fleming Financial Services Holdings Ltd acquired a new stake in shares of Western Digital in the second quarter valued at about $31,000. Finally, Valley Wealth Managers Inc. purchased a new stake in shares of Western Digital during the first quarter worth about $32,000. Hedge funds and other institutional investors own 92.51% of the company’s stock.

Western Digital Company Profile

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.