Western Digital (NASDAQ:WDC) Stock Price Down 4.5% – Time to Sell?

Western Digital Corporation (NASDAQ:WDC)’s stock price fell 4.5% on Monday . The stock traded as low as $416.00 and last traded at $426.94. Approximately 6,720,395 shares changed hands during trading, a decline of 22% from the average daily volume of 8,598,659 shares. The stock had previously closed at $447.18.

Western Digital News Roundup

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

• Positive Sentiment: Western Digital’s long-term outlook remains supported by multi-year growth in AI data centers and demand for high-capacity storage. Recent results showed substantial year-over-year revenue growth, and management’s earnings guidance indicates continued momentum. Western Digital: More Consolidation Necessary – Multi-Year AI-Driven Tailwinds
• Neutral Sentiment: Western Digital announced the redemption of all $109.5 million of its 3.00% convertible senior notes due 2028. The action removes a relatively small debt obligation, but noteholders may convert their securities through November 12, 2026, creating a potential source of share dilution. Western Digital Announces Redemption of 3.00% Convertible Senior Notes Due 2028
• Negative Sentiment: Investors appear concerned that Western Digital is moving more cautiously than Seagate in deploying next-generation HAMR hard drives. The comparison raises questions about whether WDC can secure hyperscale AI-storage contracts as quickly as competitors, even though both companies have reported strong quarters and similar revenue outlooks. Seagate Vs. Western Digital: One Moved First on AI Storage Demand
• Negative Sentiment: WDC is also being dragged lower with Micron, SanDisk, SK Hynix, and other memory and storage stocks as investors question AI-related demand, sector valuations, and the sustainability of recent gains. Technical weakness and nearby support levels are adding to selling pressure. Why Are AI Memory and Storage Stocks Tumbling?

Analyst Ratings Changes

WDC has been the topic of a number of analyst reports. Susquehanna lifted their price target on Western Digital from $360.00 to $500.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 8th. Bank of America raised their price target on Western Digital from $610.00 to $732.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. UBS Group cut their price target on shares of Western Digital from $560.00 to $525.00 and set a “neutral” rating on the stock in a report on Thursday, August 6th. Wells Fargo & Company raised their price objective on Western Digital from $575.00 to $730.00 and gave the company an “overweight” rating in a research note on Friday, July 10th. Finally, Jefferies Financial Group set a $575.00 target price on shares of Western Digital in a research report on Tuesday, May 26th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $534.56.

Western Digital Stock Performance

The firm has a market capitalization of $147.16 billion, a price-to-earnings ratio of 17.63, a price-to-earnings-growth ratio of 1.90 and a beta of 2.13. The firm’s 50-day moving average price is $493.39 and its two-hundred day moving average price is $453.24.

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

Western Digital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Tuesday, September 8th will be issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend is Tuesday, September 8th. Western Digital’s dividend payout ratio (DPR) is currently 2.48%.

Insider Activity

In other news, insider Cynthia L. Tregillis sold 432 shares of the company’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $451.20, for a total transaction of $194,918.40. Following the transaction, the insider owned 111,030 shares of the company’s stock, valued at $50,096,736. This represents a 0.39% decrease in their ownership of the stock. The sale 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, insider Vidyadhara K. Gubbi sold 1,795 shares of the company’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $459.87, for a total transaction of $825,466.65. Following the transaction, the insider owned 80,571 shares in the company, valued at approximately $37,052,185.77. The trade was a 2.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 25,437 shares of company stock worth $11,461,345. 0.18% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Western Digital

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

Western Digital Company Profile

Western Digital Corporation (NASDAQ: WDC) develops, manufactures and sells data storage products and solutions for data centers, cloud service providers, enterprises, businesses and consumers. Its portfolio is centered on hard disk drives (HDDs), including high-capacity enterprise drives used in cloud and data center environments, as well as products for network-attached storage, surveillance and personal computing.

The company markets products under brands including Western Digital, WD, WD_BLACK and Ultrastar.