Western Digital (NASDAQ:WDC) Shares Gap Up – Should You Buy?

Western Digital Co. (NASDAQ:WDC)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $62.80, but opened at $66.45. Western Digital shares last traded at $65.07, with a volume of 2,829,678 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. The Goldman Sachs Group dropped their price target on shares of Western Digital from $81.00 to $70.00 and set a “neutral” rating on the stock in a research note on Friday, January 10th. UBS Group lowered 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. Bank of America lowered their target price on shares of Western Digital from $89.00 to $80.00 and set a “buy” rating for the company in a report on Thursday, January 16th. Susquehanna decreased their price objective on shares of Western Digital from $83.00 to $72.00 and set a “neutral” rating for the company in a research note on Thursday. Finally, Cantor Fitzgerald restated an “overweight” rating and issued a $95.00 price target on shares of Western Digital in a report on Thursday. Seven research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $84.05.

Western Digital Price Performance

The stock has a market capitalization of $22.73 billion, a price-to-earnings ratio of 38.65 and a beta of 1.43. The company has a fifty day simple moving average of $65.70 and a 200 day simple moving average of $65.62. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.91 and a current ratio of 1.47.

Western Digital (NASDAQ:WDC) last released its quarterly earnings data on Wednesday, January 29th. The data storage provider reported $1.55 EPS for the quarter, missing analysts’ consensus estimates of $1.91 by ($0.36). Western Digital had a net margin of 4.81% and a return on equity of 8.57%. Equities research analysts forecast that Western Digital Co. will post 5.54 EPS for the current fiscal year.

Insiders Place Their Bets

In other Western Digital news, SVP Gene M. Zamiska sold 658 shares of the stock in a transaction dated Tuesday, November 26th. The shares were sold at an average price of $69.99, for a total transaction of $46,053.42. Following the completion of the transaction, the senior vice president now owns 28,863 shares of the company’s stock, valued at $2,020,121.37. This trade represents a 2.23 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Over the last quarter, insiders sold 1,347 shares of company stock valued at $93,027. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Versant Capital Management Inc raised its holdings in shares of Western Digital by 278.9% in the 4th quarter. Versant Capital Management Inc now owns 413 shares of the data storage provider’s stock worth $25,000 after purchasing an additional 304 shares during the period. Eastern Bank acquired a new position in Western Digital during the 3rd quarter valued at approximately $27,000. True Wealth Design LLC grew its position in shares of Western Digital by 2,184.2% during the third quarter. True Wealth Design LLC now owns 434 shares of the data storage provider’s stock worth $30,000 after acquiring an additional 415 shares during the last quarter. Comprehensive Financial Planning Inc. PA acquired a new position in shares of Western Digital during the 4th quarter valued at $30,000. Finally, Capital Performance Advisors LLP acquired a new stake in Western Digital in the 3rd quarter valued at about $41,000. 92.51% of the stock is currently owned by institutional investors and hedge funds.

About Western Digital

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.