Western Digital (NASDAQ:WDC) Stock Price Down 4.4% – Here’s Why

Western Digital Corporation (NASDAQ:WDC) traded down 4.4% during mid-day trading on Wednesday. The company traded as low as $362.50 and last traded at $364.10. Approximately 6,649,914 shares traded hands during mid-day trading, a decline of 23% from the average daily volume of 8,634,195 shares. The stock had previously closed at $380.71.

Western Digital News Roundup

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

• Positive Sentiment: Wells Fargo reportedly remains bullish on Western Digital and Seagate, arguing that the recent decline has been “well overdone.” The view suggests that lower prices may already reflect many of the market’s concerns. Seagate and Western Digital Stocks Fall on Toshiba Fears. Wells Fargo Is Still Bullish.
• Positive Sentiment: Western Digital expects fiscal Q1 2027 revenue to increase approximately 45%, supported by accelerating demand for AI infrastructure and cloud storage. Its prior quarter also exceeded analyst expectations, with earnings and revenue growth benefiting from strong storage demand. Western Digital Pre-Q1 Earnings: Buy the Stock Now or Wait for Results?
• Neutral Sentiment: The company is scheduled to report fiscal first-quarter 2027 results after the market closes on October 22. Investors are focused on whether Western Digital can beat expectations and confirm its growth outlook before committing to the stock. Western Digital Pre-Q1 Earnings: Buy the Stock Now or Wait for Results?
• Negative Sentiment: Investors are concerned that Toshiba’s planned hard-disk-drive capacity expansion could increase future supply and pressure pricing. The broader risk is that storage supply catches up with AI-related demand faster than expected. Seagate, Western Digital Face Supply Risks as AI Demand Drives Capacity Expansion
• Negative Sentiment: Wells Fargo lowered its price target for WDC, adding to bearish headlines even though the firm reportedly kept a constructive long-term stance. Rising interest-rate concerns and questions about whether hyperscaler capital spending can sustain a projected $1 trillion pace are also weighing on the AI trade. Friday’s First Moves: WDC and STX Price Target Cuts
• Negative Sentiment: Competition concerns intensified after China’s ChangXin Memory Technologies signaled plans targeting server memory, prompting a broader selloff across AI-related memory and storage stocks. Some analysts also argue that Western Digital may be approaching a cyclical peak and currently favor Seagate as the stronger trade. Memory Stocks Extend Selloff on China Competition Fears

Wall Street Analyst Weigh In

Several research firms recently issued reports on WDC. Morgan Stanley reiterated an “overweight” rating and set a $676.00 price target (up from $650.00) on shares of Western Digital in a research report on Thursday, August 6th. The Goldman Sachs Group reduced their target price on Western Digital from $650.00 to $615.00 in a report on Thursday, August 6th. Bank of America boosted their target price on shares of Western Digital from $610.00 to $732.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Fox Advisors lowered shares of Western Digital from an “overweight” rating to an “equal weight” rating in a report on Monday, June 22nd. Finally, Cantor Fitzgerald increased their price target on Western Digital from $660.00 to $900.00 in a report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Western Digital presently has an average rating of “Moderate Buy” and an average price target of $608.26.

Western Digital Price Performance

The firm’s 50 day simple moving average is $444.89 and its two-hundred day simple moving average is $477.85. The firm has a market capitalization of $125.93 billion, a P/E ratio of 13.87, a P/E/G ratio of 1.54 and a beta of 2.11.

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

Western Digital Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Tuesday, September 8th were given a dividend of $0.15 per share. The ex-dividend date was Tuesday, September 8th. This represents a $0.60 annualized dividend and a dividend yield of 0.2%. Western Digital’s dividend payout ratio (DPR) is presently 2.48%.

Insiders Place Their Bets

In other news, insider Vidyadhara K. Gubbi sold 1,795 shares of Western Digital stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $459.87, for a total transaction of $825,466.65. Following the completion of the sale, the insider owned 80,571 shares of the company’s stock, valued at approximately $37,052,185.77. The trade was a 2.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Cynthia L. Tregillis sold 432 shares of the stock in a transaction on Friday, September 4th. The shares were sold at an average price of $451.20, for a total value of $194,918.40. Following the sale, the insider directly owned 111,030 shares in the company, valued at $50,096,736. This trade represents a 0.39% 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 have sold a total of 25,437 shares of company stock valued at $11,461,345 in the last quarter. 0.20% of the stock is currently owned by insiders.

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 position in Western Digital during the second quarter valued at $28,000. Dunhill Financial LLC acquired a new position in Western Digital during the second quarter worth $29,000. Stonehage Fleming Financial Services Holdings Ltd acquired a new position in shares of Western Digital in the second quarter worth $31,000. Valley Wealth Managers Inc. purchased a new stake in shares of Western Digital during the first quarter worth approximately $32,000. Finally, Gables Capital Management Inc. acquired a new position in shares of Western Digital during the 2nd quarter worth about $32,000. Hedge funds and other institutional investors own 92.51% of the company’s stock.

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.