Western Digital (NASDAQ:WDC) Downgraded by Cross Research to “Hold”

Cross Research lowered shares of Western Digital (NASDAQ:WDC) from a buy rating to a hold rating in a research note published on Friday, July 27th, Marketbeat reports.

WDC has been the topic of several other research reports. BidaskClub lowered Western Digital from a strong-buy rating to a buy rating in a research note on Thursday, April 26th. BTIG Research reiterated a buy rating on shares of Western Digital in a research note on Sunday, April 29th. Benchmark reiterated a buy rating and set a $130.00 target price on shares of Western Digital in a research note on Friday, April 27th. Stifel Nicolaus increased their target price on Western Digital from $105.00 to $110.00 and gave the stock a buy rating in a research note on Friday, April 27th. Finally, Maxim Group reiterated a buy rating and set a $150.00 target price on shares of Western Digital in a research note on Friday, April 27th. Two equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and twenty have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $104.00.

NASDAQ WDC traded down $1.32 during trading hours on Friday, hitting $64.79. 4,603,621 shares of the company traded hands, compared to its average volume of 4,145,685. Western Digital has a twelve month low of $64.68 and a twelve month high of $106.96. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.73 and a current ratio of 2.39. The stock has a market capitalization of $19.78 billion, a PE ratio of 4.84, a price-to-earnings-growth ratio of 0.32 and a beta of 0.96.

Western Digital (NASDAQ:WDC) last issued its quarterly earnings results on Thursday, July 26th. The data storage provider reported $3.61 EPS for the quarter, beating the consensus estimate of $3.20 by $0.41. The firm had revenue of $5.12 billion during the quarter, compared to analysts’ expectations of $5.07 billion. Western Digital had a return on equity of 36.35% and a net margin of 3.27%. The business’s quarterly revenue was up 5.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.93 earnings per share. research analysts forecast that Western Digital will post 10.71 EPS for the current year.

Western Digital declared that its Board of Directors has authorized a share repurchase program on Thursday, July 26th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the data storage provider to reacquire up to 22.3% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

The firm also recently announced a quarterly dividend, which will be paid on Monday, October 15th. Stockholders of record on Friday, September 28th will be paid a $0.50 dividend. The ex-dividend date is Thursday, September 27th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 3.09%. Western Digital’s payout ratio is presently 14.80%.

In other Western Digital news, EVP Michael Charles Ray sold 4,387 shares of the business’s stock in a transaction on Monday, August 6th. The shares were sold at an average price of $67.65, for a total transaction of $296,780.55. Following the sale, the executive vice president now owns 107,155 shares of the company’s stock, valued at approximately $7,249,035.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Srinivasan Sivaram sold 63,879 shares of the business’s stock in a transaction on Tuesday, May 29th. The shares were sold at an average price of $86.36, for a total transaction of $5,516,590.44. Following the sale, the executive vice president now directly owns 110,910 shares in the company, valued at approximately $9,578,187.60. The disclosure for this sale can be found here. Insiders sold a total of 136,216 shares of company stock worth $11,137,352 in the last 90 days. Company insiders own 0.31% of the company’s stock.

Hedge funds have recently modified their holdings of the business. Migdal Insurance & Financial Holdings Ltd. grew its position in Western Digital by 16,520.0% in the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,662 shares of the data storage provider’s stock worth $129,000 after acquiring an additional 1,652 shares in the last quarter. NuWave Investment Management LLC grew its position in Western Digital by 10,140.0% in the first quarter. NuWave Investment Management LLC now owns 1,536 shares of the data storage provider’s stock worth $140,000 after acquiring an additional 1,521 shares in the last quarter. Financial Gravity Wealth Inc. purchased a new position in Western Digital in the first quarter worth $145,000. Assetmark Inc. grew its position in Western Digital by 437.9% in the first quarter. Assetmark Inc. now owns 1,673 shares of the data storage provider’s stock worth $154,000 after acquiring an additional 1,362 shares in the last quarter. Finally, Legacy Financial Advisors Inc. grew its position in Western Digital by 32,283.3% in the second quarter. Legacy Financial Advisors Inc. now owns 1,943 shares of the data storage provider’s stock worth $155,000 after acquiring an additional 1,937 shares in the last quarter. 84.36% of the stock is currently owned by institutional investors and hedge funds.

Western Digital Company Profile

Western Digital Corporation, together with its subsidiaries, develops, manufactures, and sells data storage devices and solutions worldwide. It offers performance hard disk drives (HDDs) that are used in enterprise servers, data analysis, and other enterprise applications; capacity HDDs and drive configurations for use in data storage systems and tiered storage models; and enterprise solid state drives (SSDs), including NAND-flash SSDs and software solutions that are designed to enhance the performance in various enterprise workload environments.

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Analyst Recommendations for Western Digital (NASDAQ:WDC)

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