Western Digital Corporation (NASDAQ: WDC) stock jumped 1.90% on Friday to $49.39 against a previous-day closing price of $48.47. With 2.73 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.85 million shares. During the session, the Computer Hardware company that operates in wider Technology sector, reached to the highest price of $49.75 whereas the lowest price it dropped to was $48.09. The 52-week range on WDC shows that it touched its highest point at $69.99 and its lowest point at $41.63 during that stretch. It currently has a 1-year price target of $67.87. Beta for the stock currently stands at 1.49.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WDC was up-trending over the past week, with a rise of 1.98%, but this was up by 12.79% over a month. Three-month performance dropped to -19.98% while six-month performance fell -6.05%. The stock lost -25.33% in the past year, while it has lost -24.26% so far this year. A look at the trailing 12-month EPS for WDC yields 5.79 with Next year EPS estimates of 8.11. For the next quarter, that number is 1.74. This implies an EPS growth rate of 416.70% for this year and -0.93% for next year. EPS is expected to grow by 22.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 21.60%.
Float and Shares Shorts:
At present, 313.00 million WDC shares are outstanding with a float of 311.79 million shares on hand for trading. On Jul 14, 2022, short shares totaled 9.22 million, which was 2.94% higher than short shares on Jun 14, 2022. In addition to Mr. David V. Goeckeler as the firm’s CEO & Director, Dr. Sivaram Srinivasan Ph.D. serves as its Pres of Technology & Strategy.
Through their ownership of 81.77% of WDC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.97% of WDC, in contrast to 47.89% held by mutual funds. Shares owned by individuals account for 33.85%. As the largest shareholder in WDC with 10.75% of the stake, The Vanguard Group, Inc. holds 33,679,414 shares worth 33,679,414. A second-largest stockholder of WDC, BlackRock Fund Advisors, holds 16,292,038 shares, controlling over 5.20% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in WDC, holding 12,996,053 shares or 4.15% stake. With a 2.95% stake in WDC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 9,241,157 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.30% of WDC stock, is the second-largest Mutual Fund holder. It holds 7,210,139 shares valued at 323.23 million. Vanguard 500 Index Fund holds 2.21% of the stake in WDC, owning 6,931,139 shares worth 310.72 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 31, 2022, WDC reported revenue of $4.38B and operating income of $328.00M. Over the past year, revenue came in at $19.18B while operating income stood at $2.50B. It generated $25.00M net income for the quarter, which came to $1.82B over the last twelve months. The EBITDA in the recently reported quarter was $557.00M and diluted EPS was $0.08. EBITDA for the full year was $3.50B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WDC since 28 analysts follow the stock currently. There are 17 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WDC analysts setting a high price target of $90.00 and a low target of $50.00, the average target price over the next 12 months is $67.35. Based on these targets, WDC could surge 82.22% to reach the target high and rise by 1.24% to reach the target low. Reaching the average price target will result in a growth of 36.36% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. WDC will report FY 2022 earnings on 08/03/2023. Analysts have provided yearly estimates in a range of $8.41 being high and $8.04 being low. For WDC, this leads to a yearly average estimate of $8.19. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Western Digital Corporation surprised analysts by $0.16 when it reported $1.65 EPS against a consensus estimate of $1.49. The surprise factor in the prior quarter was $0.17. Based on analyst estimates, the high estimate for the next quarter is $2.00 and the low estimate is $1.61. The average estimate for the next quarter is thus $1.75.
Dividends & Yield:
In terms of dividends, WDC has a dividend of $1.81 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and WDC currently yields $0.70. In the past year, WDC’s dividend yield has been $0.70, but when looking at the stock over the past five years, its yield has been $3.21. Accordingly, WDC has a current buyback yield of $0.00. This was $0.00 for the TTM, and it was $2.26 for the past five years.
Summary of Insider Activity:
Insiders traded WDC stock several times over the past three months with 6 Buys and 2 Sells. In these transactions, 772,829 shares were bought while 4,888 shares were sold. The number of buy transactions has increased to 36 while that of sell transactions has risen to 24 over the past year. The total number of shares bought during that period was 1,147,200 while 207,009 shares were sold.