Western Digital (NASDAQ:WDC) Stock Price Expected to Rise, Citigroup Analyst Says

Western Digital (NASDAQ:WDC) had its target price lifted by Citigroup from $78.00 to $88.00 in a research note released on Thursday morning,Benzinga reports. They currently have a buy rating on the data storage provider’s stock.

A number of other analysts have also commented on the stock. TD Cowen boosted their price target on shares of Western Digital from $58.00 to $90.00 and gave the company a “buy” rating in a research note on Thursday. Susquehanna decreased their price target on shares of Western Digital from $72.00 to $40.00 and set a “neutral” rating for the company in a research note on Friday, April 11th. Rosenblatt Securities boosted their price target on shares of Western Digital from $53.00 to $90.00 and gave the company a “buy” rating in a research note on Thursday. Summit Insights upgraded shares of Western Digital from a “hold” rating to a “buy” rating in a research note on Wednesday, April 30th. Finally, Bank of America boosted their price target on shares of Western Digital from $62.00 to $71.00 and gave the company a “buy” rating in a research note on Monday, June 9th. Four analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $75.00.

Western Digital Stock Up 10.2%

Shares of NASDAQ WDC opened at $78.69 on Thursday. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.31 and a current ratio of 1.56. Western Digital has a 52-week low of $28.83 and a 52-week high of $78.80. The company’s 50 day moving average price is $61.69 and its 200-day moving average price is $53.81. The company has a market capitalization of $27.45 billion, a P/E ratio of 15.28 and a beta of 1.54.

Western Digital (NASDAQ:WDC) last released its earnings results on Wednesday, July 30th. The data storage provider reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.18. Western Digital had a net margin of 14.13% and a return on equity of 22.13%. The company had revenue of $2.61 billion for the quarter, compared to the consensus estimate of $2.45 billion. During the same quarter in the previous year, the company earned $1.44 EPS. Western Digital’s quarterly revenue was up 30.0% compared to the same quarter last year. Equities analysts forecast that Western Digital will post 4.89 earnings per share for the current year.

Western Digital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Thursday, September 4th will be given a dividend of $0.10 per share. The ex-dividend date is Thursday, September 4th. This represents a $0.40 annualized dividend and a yield of 0.5%. Western Digital’s dividend payout ratio is presently 7.77%.

Western Digital declared that its board has authorized a stock buyback plan on Tuesday, May 13th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the data storage provider to reacquire up to 11.7% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

Insider Activity

In related news, CEO Irving Tan sold 11,379 shares of the stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of $48.19, for a total transaction of $548,354.01. Following the completion of the transaction, the chief executive officer owned 605,481 shares in the company, valued at approximately $29,178,129.39. This represents a 1.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Gene M. Zamiska sold 1,729 shares of the company’s stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $54.88, for a total transaction of $94,887.52. Following the sale, the senior vice president directly owned 40,089 shares in the company, valued at approximately $2,200,084.32. This trade represents a 4.13% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 13,353 shares of company stock valued at $657,454. 0.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Western Digital

Institutional investors have recently added to or reduced their stakes in the business. Private Wealth Management Group LLC lifted its holdings in Western Digital by 102.5% during the second quarter. Private Wealth Management Group LLC now owns 399 shares of the data storage provider’s stock valued at $26,000 after purchasing an additional 202 shares during the last quarter. CNB Bank purchased a new stake in Western Digital during the second quarter valued at about $37,000. Elequin Capital LP purchased a new stake in Western Digital during the fourth quarter valued at about $40,000. FNY Investment Advisers LLC lifted its holdings in Western Digital by 178.3% during the second quarter. FNY Investment Advisers LLC now owns 668 shares of the data storage provider’s stock valued at $42,000 after purchasing an additional 428 shares during the last quarter. Finally, Zions Bancorporation National Association UT purchased a new stake in Western Digital during the first quarter valued at about $29,000. 92.51% of the stock is owned by hedge funds and other 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.