Western Digital (NASDAQ:WDC) Shares Gap Down – Here’s Why

Western Digital Co. (NASDAQ:WDC) gapped down prior to trading on Thursday . The stock had previously closed at $63.54, but opened at $61.92. Western Digital shares last traded at $61.63, with a volume of 1,345,131 shares trading hands.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. TD Cowen reduced their price target on shares of Western Digital from $95.00 to $80.00 and set a “buy” rating on the stock in a report on Friday, September 13th. Wedbush reaffirmed an “outperform” rating and issued a $95.00 target price on shares of Western Digital in a research note on Friday, November 29th. UBS Group dropped their price target on Western Digital from $74.00 to $72.00 and set a “neutral” rating for the company in a research report on Thursday, October 24th. BNP Paribas reduced their price objective on Western Digital from $95.00 to $90.00 in a research report on Thursday, October 24th. Finally, Morgan Stanley increased their price objective on Western Digital from $94.00 to $100.00 and gave the company an “overweight” rating in a research note on Friday, October 25th. Seven research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $86.67.

Western Digital Price Performance

The stock has a market capitalization of $20.85 billion, a P/E ratio of 35.47 and a beta of 1.42. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.91 and a current ratio of 1.47. The stock has a 50-day simple moving average of $67.59 and a 200 day simple moving average of $68.56.

Western Digital (NASDAQ:WDC) last announced its quarterly earnings data on Thursday, October 24th. The data storage provider reported $1.78 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.55 by $0.23. Western Digital had a net margin of 4.81% and a return on equity of 8.57%. The firm had revenue of $4.10 billion for the quarter, compared to analysts’ expectations of $4.12 billion. During the same period last year, the firm earned ($1.97) earnings per share. The business’s revenue for the quarter was up 48.9% on a year-over-year basis. On average, equities analysts forecast that Western Digital Co. will post 6.56 earnings per share for the current fiscal year.

Insider Buying and Selling at Western Digital

In other Western Digital news, SVP Gene M. Zamiska sold 658 shares of the firm’s stock in a transaction that occurred on Tuesday, November 26th. The stock was sold at an average price of $69.99, for a total value of $46,053.42. Following the completion of the transaction, the senior vice president now directly owns 28,863 shares in the company, valued at $2,020,121.37. This trade represents a 2.23 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO David Goeckeler sold 75,000 shares of the company’s stock in a transaction that occurred on Friday, October 25th. The stock was sold at an average price of $72.58, for a total value of $5,443,500.00. Following the sale, the chief executive officer now owns 821,630 shares in the company, valued at approximately $59,633,905.40. This represents a 8.36 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 184,107 shares of company stock valued at $13,042,381. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Western Digital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Eastern Bank bought a new position in Western Digital during the third quarter worth about $27,000. Fairfield Financial Advisors LTD bought a new position in shares of Western Digital in the second quarter worth $29,000. True Wealth Design LLC raised its stake in Western Digital by 2,184.2% in the third quarter. True Wealth Design LLC now owns 434 shares of the data storage provider’s stock valued at $30,000 after purchasing an additional 415 shares in the last quarter. 1620 Investment Advisors Inc. bought a new stake in Western Digital during the second quarter worth about $34,000. Finally, Ashton Thomas Private Wealth LLC acquired a new stake in Western Digital during the second quarter worth about $34,000. 92.51% of the stock is owned by institutional investors.

Western Digital Company Profile

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for desktop and notebook personal computers (PCs), gaming consoles, and set top boxes; and flash-based embedded storage products for mobile phones, tablets, notebook PCs, and other portable and wearable devices, as well as automotive, Internet of Things, industrial, and connected home applications.