Western Digital Corporation (WDC) – Don’t Be So Quick to Call it Dead

Western Digital Corporation (NASDAQ: WDC) is -39.47% lower on its value in year-to-date trading and has touched a low of $27.40 and a high of $72.00 in the current 52-week trading range. The WDC stock was last observed hovering at around $37.84 in the last trading session, with the day’s gains setting it 0.58% off its average median price target of $51.00 for the next 12 months. It is also 57.31% off the consensus price target high of $90.00 offered by 30 analysts, but current levels are 3.95% higher than the price target low of $40.00 for the same period.

Currently trading at $38.42, the stock is 4.01% and -5.43% below its SMA20 and SMA50 respectively. However, with a daily trading volume of 9.22 million and changing 1.53% at the moment leaves the stock -21.39% off its SMA200. WDC registered -32.91% loss for a year compared to 6-month loss of -32.51%. The firm has a 50-day simple moving average (SMA 50) of $39.70 and a 200-day simple moving average (SMA200) of $43.86.

The stock witnessed a -10.86% gain in the last 1 month and extending the period to 3 months gives it a -12.68%, and is 11.23% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 4.07% over the week and 3.19% over the month.

Western Digital Corporation (WDC) has around 61800 employees, a market worth around $10.72B and $16.74B in sales. Fwd P/E is 6.08. Profit margin for the company is -7.10%. Distance from 52-week low is 40.22% and -46.64% from its 52-week high. The company has generated returns on investments over the last 12 months (-1.30%).

Western Digital Corporation (WDC) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Western Digital Corporation (WDC) is a “Overweight”. 30 analysts offering their recommendations for the stock have an average rating of 2.20, where 12 rate it as a Hold and 3 think it is a “Overweight”. 15 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

Western Digital Corporation quarterly earnings per share for the current quarter are estimated at $0.55 with sales reaching $3.83B over the same period.The EPS is expected to shrink by -130.60% this year, but quarterly earnings will post -6.20% year-over-year. Quarterly sales are estimated to shrink -5.10% in year-over-year returns.

Western Digital Corporation (WDC) Top Institutional Holders

969 institutions hold shares in Western Digital Corporation (WDC), with 1.09M shares held by insiders accounting for 0.36% while institutional investors hold 86.74% of the company’s shares. The shares outstanding are 299.00M, and float is at 298.13M with Short Float at 3.44%. Institutions hold 86.43% of the Float.

The top institutional shareholder in the company is Vanguard Group, Inc. (The) with over 33.3 million shares valued at $1.47 billion. The investor’s holdings represent 11.11% of the WDC Shares outstanding. As of Jun 29, 2020, the second largest holder is Blackrock Inc. with 21.77 million shares valued at $961.2 million to account for 7.26% of the shares outstanding. The other top investors are FMR, LLC which holds 13.33 million shares representing 4.45% and valued at over $588.31 million, while State Street Corporation holds 4.17% of the shares totaling 12.51 million with a market value of $552.42 million.

Western Digital Corporation (WDC) Insider Activity

A total of 18 insider transactions have happened at Western Digital Corporation (WDC) in the last six months, with sales accounting for 8 and purchases happening 10 times. The most recent transaction is an insider sale by Sundberg Lori S, the company’s EVP & Chief Human Res Officer. SEC filings show that Sundberg Lori S sold 1,300 shares of the company’s common stock on Jun 03 at a price of $45.66 per share for a total of $59352.0. Following the sale, the insider now owns 44322.0 shares.

Western Digital Corporation disclosed in a document filed with the SEC on Feb 05 that CORDANO MICHAEL D (President and COO) sold a total of 200 shares of the company’s common stock. The trade occurred on Feb 05 and was made at $70.16 per share for $14032.0. Following the transaction, the insider now directly holds 0.24 million shares of the WDC stock.

Still, SEC filings show that on Feb 04, RAY MICHAEL CHARLES (EVP, Chief Legal Officer & Sec) disposed off 4,387 shares at an average price of $69.00 for $0.3 million. The insider now directly holds 51,762 shares of Western Digital Corporation (WDC).

Western Digital Corporation (WDC): Who are the competitors?

The company’s main competitors (and peers) include Teradata Corporation (TDC) that is trading -21.12% down over the past 12 months. Super Micro Computer Inc. (SMCI) is 44.92% up on the 1-year trading charts. Short interest in the company’s stock has risen 25.12% from the last report on Jul 14, 2020 to stand at a total of 7.69 million short shares sold with a short interest ratio of 1.58.