Western Digital (NASDAQ:WDC) Stock Rating Lowered by Zacks Research

Western Digital (NASDAQ:WDC) was downgraded by equities research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Monday, Zacks reports.

A number of other equities analysts also recently weighed in on WDC. Morgan Stanley reissued an “overweight” rating and set a $676.00 price target on shares of Western Digital in a research report on Thursday, August 6th. JPMorgan Chase & Co. lifted their target price on Western Digital from $530.00 to $650.00 and gave the stock an “overweight” rating in a research note on Friday, June 12th. Summit Insights downgraded Western Digital from a “buy” rating to a “hold” rating in a research note on Thursday, August 6th. Susquehanna boosted their target price on Western Digital from $360.00 to $500.00 and gave the stock a “neutral” rating in a report on Wednesday, July 8th. Finally, Wall Street Zen cut Western Digital from a “strong-buy” rating to a “buy” rating in a research note on Sunday, August 16th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $534.56.

Western Digital Price Performance

Shares of WDC stock opened at $411.04 on Monday. The company has a fifty day moving average price of $462.94 and a two-hundred day moving average price of $473.39. Western Digital has a one year low of $112.52 and a one year high of $799.87. The stock has a market cap of $141.68 billion, a P/E ratio of 16.98, a P/E/G ratio of 1.87 and a beta of 2.11.

Western Digital (NASDAQ:WDC) last issued its earnings results on Wednesday, August 5th. The data storage provider reported $3.56 earnings per share (EPS) for the quarter, beating 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 company had revenue of $3.75 billion for the quarter, compared to analysts’ expectations of $3.70 billion. During the same period in the prior year, the firm earned $1.66 EPS. Western Digital’s quarterly revenue 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, equities research analysts anticipate that Western Digital will post 19.65 EPS for the current fiscal year.

Insider Buying and Selling at Western Digital

In other news, insider Cynthia Tregillis sold 432 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $451.20, for a total transaction of $194,918.40. Following the transaction, the insider directly owned 111,030 shares of the company’s stock, valued at approximately $50,096,736. This trade represents a 0.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 Western Digital stock in a transaction 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 transaction, the insider directly owned 80,571 shares of the company’s stock, valued at $37,052,185.77. This represents a 2.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 25,437 shares of company stock valued at $11,461,345 in the last quarter. Company insiders own 0.18% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of WDC. Legal & General Group Plc acquired a new position in shares of Western Digital during the second quarter worth $1,602,927,000. ABS Investment Management LLC bought a new stake in shares of Western Digital in the second quarter worth $1,226,342,000. Anther Capital Ltd acquired a new position in Western Digital during the 2nd quarter worth about $901,601,000. Deutsche Bank AG bought a new position in shares of Western Digital during the second quarter worth about $885,565,000. Finally, Trivest Advisors Ltd acquired a new stake in Western Digital during the 2nd quarter valued at approximately $627,606,000. Institutional investors and hedge funds own 92.51% of the company’s stock.

More Western Digital News

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

• Positive Sentiment: Analysts previously characterized Toshiba’s planned production expansion as manageable, arguing that the HDD market remains undersupplied and that Toshiba would still trail Western Digital and Seagate in scale. This helped support a rebound in WDC shares during the prior session. Western Digital and Seagate shares bounce back as analysts downplay the Toshiba threat
• Positive Sentiment: Western Digital’s latest reported quarter showed strong fundamentals: earnings and revenue exceeded consensus estimates, revenue increased 43.8% year over year, and management issued first-quarter fiscal 2027 earnings guidance of $3.85–$4.15 per share.
• Neutral Sentiment: The AI infrastructure buildout continues to drive demand for high-capacity HDD storage, creating a favorable long-term opportunity for WDC. However, investors are increasingly focused on whether new industry capacity could weaken pricing and margins. Seagate vs. Western Digital vs. Toshiba: The AI Storage War Is Getting Serious
• Negative Sentiment: Investor concerns returned after reports that Toshiba intends to expand HDD production, potentially increasing future supply and intensifying competition for AI-storage customers. The news pressured Western Digital and Seagate while leaving memory-chip stocks comparatively less affected. Western Digital Sinks as Toshiba’s Drive Expansion Hits the Group
• Negative Sentiment: Reports that Seagate and Toshiba are competing to acquire TDK’s hard-drive magnetic-heads business added another concern. Investors may view control of the only independent magnetic-recording-head supplier as a potential advantage for rivals in technology, capacity, and supply-chain control. Western Digital Stock Drops Tuesday: Here’s Why

About Western Digital

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.