Western Digital (NASDAQ:WDC) Stock Jumps 8.3% – Still a Buy?

Western Digital Corporation (NASDAQ:WDC)’s stock price was up 8.3% during mid-day trading on Wednesday. The stock traded as high as $319.00 and last traded at $313.31. Approximately 7,987,379 shares were traded 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.

Key Western Digital News

These are some of the WDC news items that stood out recently:

• Positive Sentiment: The rebound follows a sharp selloff in AI and storage hardware. Investors may also be responding to Western Digital’s latest earnings beat, strong near-term revenue outlook, and 17% dividend increase, which support the case for continued storage demand and cash generation. Why Western Digital (WDC) Stock Is Up Today
• 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

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on WDC shares. Wall Street Zen cut Western Digital from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 31st. BNP Paribas Exane raised their price target on Western Digital from $660.00 to $700.00 and gave the company an “outperform” rating in a research note on Thursday, August 6th. Citigroup decreased their price objective on Western Digital from $740.00 to $660.00 and set a “buy” rating for the company in a report on Friday, October 23rd. Summit Insights lowered shares of Western Digital from a “buy” rating to a “hold” rating in a research note on Thursday, August 6th. Finally, Argus dropped their target price on shares of Western Digital from $600.00 to $500.00 and set a “buy” rating on the stock in a report on Monday, October 26th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $591.04.

Western Digital Price Performance

The business has a 50-day moving average of $400.13 and a two-hundred day moving average of $419.44. The company has a market cap of $117.28 billion, a P/E ratio of 12.16, a P/E/G ratio of 1.02 and a beta of 2.27.

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

Western Digital Increases Dividend

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

Insider Buying and Selling at Western Digital

In other news, insider Vidyadhara K. Gubbi sold 1,795 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Cynthia L. Tregillis sold 1,007 shares of the business’s stock in a transaction 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 transaction, the insider owned 112,155 shares in the company, valued at approximately $53,650,465.80. This trade represents a 0.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 5,436 shares of company stock worth $2,440,664 over the last ninety days. Corporate insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Western Digital

A number of large investors have recently modified their holdings of the business. Mowery & Schoenfeld Wealth Management LLC acquired a new stake in Western Digital in the 2nd quarter worth approximately $28,000. Dunhill Financial LLC acquired a new position in Western Digital during the 2nd quarter valued at approximately $29,000. Stonehage Fleming Financial Services Holdings Ltd purchased a new position in shares of Western Digital in the second quarter worth $31,000. Gables Capital Management Inc. purchased a new position in shares of Western Digital in the second quarter worth $32,000. Finally, Valley National Advisers Inc. lifted its stake in shares of Western Digital by 182.6% during the third quarter. Valley National Advisers Inc. now owns 65 shares of the data storage provider’s stock worth $30,000 after buying an additional 42 shares during the period. 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.