Western Digital (NASDAQ:WDC) Stock Price Down 1.4% – Here’s Why

Western Digital Corporation (NASDAQ:WDC)’s share price was down 1.4% during trading on Friday. The company traded as low as $258.61 and last traded at $263.78. 11,934,851 shares traded hands during mid-day trading, an increase of 37% from the average session volume of 8,707,566 shares. The stock had previously closed at $267.63.

Western Digital News Summary

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

• Positive Sentiment: Memory and storage shares recovered broadly Friday after a steep sector selloff. Strategists cited continuing AI-storage demand, though some expect the buildout to unfold over a longer timeline. Western Digital Stock Rebounds as Wall Street Bets AI Storage Demand Outlasts Election Rout
• Positive Sentiment: Fundamental support includes stronger pricing, demand for higher-capacity hard drives and operational efficiencies, which have been driving gross-margin expansion. Western Digital’s Gross Margin Momentum: How Long Can It Last?
• Positive Sentiment: Zacks Research upgraded Western Digital from “hold” to “strong buy,” adding a favorable analyst signal amid the volatility. Zacks Research Upgrade
• Negative Sentiment: Investors are weighing the possibility of tighter oversight, permitting rules or limits on new AI data-center projects following renewed election momentum for Democrats. Such measures could delay infrastructure spending and temper demand expectations for storage suppliers. Why Are Western Digital Shares Falling on AI Data Center Policy Risk?
• Negative Sentiment: One valuation analysis lowered its fair-value estimate for WDC, reflecting concerns about how much HDD strength is already priced in and uncertainty around future capacity and supply. Western Digital Stock Sees Fair Value Cut As Analysts Weigh HDD Strength

Analysts Set New Price Targets

WDC has been the topic of several recent analyst reports. Zacks Research raised shares of Western Digital from a “hold” rating to a “strong-buy” rating in a report on Tuesday. TD Cowen cut their target price on shares of Western Digital from $540.00 to $430.00 and set a “buy” rating for the company in a research note on Friday, October 23rd. Wedbush upped their price target on shares of Western Digital from $540.00 to $650.00 and gave the stock an “outperform” rating in a research report on Monday, July 27th. Argus decreased their price target on shares of Western Digital from $600.00 to $500.00 and set a “buy” rating on the stock in a research note on Monday, October 26th. Finally, Evercore reiterated an “outperform” rating on shares of Western Digital in a report on Friday, October 23rd. Two analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $591.04.

Western Digital Stock Down 1.4%

The business has a 50-day moving average price of $410.72 and a 200-day moving average price of $418.77. The firm has a market capitalization of $98.74 billion, a PE ratio of 10.24, a price-to-earnings-growth ratio of 1.14 and a beta of 2.27.

Western Digital (NASDAQ:WDC) last announced its quarterly earnings data on Thursday, October 22nd. The data storage provider reported $4.64 EPS for the quarter, topping analysts’ consensus estimates of $4.11 by $0.53. Western Digital had a return on equity of 55.62% and a net margin of 69.20%. The firm had revenue of $4.38 billion for the quarter, compared to the consensus estimate of $4.14 billion. During the same quarter last year, the business posted $1.78 earnings per share. The firm’s revenue was up 55.5% compared to the same quarter last year. On average, equities research analysts anticipate that Western Digital Corporation will post 23.62 earnings per share for the current year.

Western Digital Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Friday, December 4th will be paid a $0.1750 dividend. This is a positive change from Western Digital’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Friday, December 4th. This represents a $0.70 annualized dividend and a dividend yield of 0.3%. Western Digital’s dividend payout ratio is currently 2.72%.

Insider Activity

In other news, CEO Irving Tan sold 20,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $444.97, for a total transaction of $8,899,400.00. Following the completion of the sale, the chief executive officer owned 575,966 shares in the company, valued at $256,287,591.02. This trade represents a 3.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Cynthia Tregillis sold 807 shares of Western Digital stock in a transaction that occurred on Wednesday, October 21st. The shares were sold at an average price of $380.00, for a total transaction of $306,660.00. Following the sale, the insider directly owned 108,928 shares in the company, valued at approximately $41,392,640. The trade was a 0.74% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 25,436 shares of company stock valued at $11,340,064 in the last 90 days. Company insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Western Digital

Large investors have recently modified their holdings of the business. Allworth Financial LP lifted its position in shares of Western Digital by 3.8% in the 3rd quarter. Allworth Financial LP now owns 9,349 shares of the data storage provider’s stock worth $4,249,000 after buying an additional 345 shares during the last quarter. SVB Wealth LLC grew its position in shares of Western Digital by 306.6% during the 3rd quarter. SVB Wealth LLC now owns 3,204 shares of the data storage provider’s stock valued at $1,456,000 after buying an additional 2,416 shares during the last quarter. Maryland State Retirement & Pension System raised its stake in Western Digital by 15.3% during the third quarter. Maryland State Retirement & Pension System now owns 21,048 shares of the data storage provider’s stock worth $9,565,000 after acquiring an additional 2,797 shares during the period. NBH Bank acquired a new stake in Western Digital during the third quarter worth about $76,000. Finally, International Private Wealth Advisors LLC bought a new position in Western Digital in the third quarter worth about $1,293,000. Institutional investors and hedge funds 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.

Western Digital serves customers around the world.