Western Digital Corporation (NASDAQ: WDC) stock jumped 8.66% on Monday to $41.79 against a previous-day closing price of $38.46. With 8.28 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.89 million shares. During the session, the Computer Hardware company that operates in wider Technology sector, reached to the highest price of $41.99 whereas the lowest price it dropped to was $40.04. The 52-week range on WDC shows that it touched its highest point at $63.26 and its lowest point at $29.73 during that stretch. It currently has a 1-year price target of $44.01. Beta for the stock currently stands at 1.56.
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 12.28%, but this was up by 30.27% over a month. Three-month performance surged to 24.86% while six-month performance fell -11.50%. The stock lost -30.26% in the past year, while it has gained 32.46% so far this year. A look at the trailing 12-month EPS for WDC yields 2.91 with Next year EPS estimates of 3.01. For the next quarter, that number is -0.12. This implies an EPS growth rate of 78.70% for this year and 6080.00% for next year. EPS is expected to decline by -10.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 28.80%.
Float and Shares Shorts:
At present, 317.65 million WDC shares are outstanding with a float of 316.67 million shares on hand for trading. On Oct 13, 2022, short shares totaled 9.59 million, which was 3.02% higher than short shares on Sep 14, 2022. In addition to Mr. David V. Goeckeler as the firm’s CEO & Director, Mr. Wissam G. Jabre serves as its Exec. VP & CFO.
Through their ownership of 87.43% of WDC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.94% of WDC, in contrast to 48.67% held by mutual funds. Shares owned by individuals account for 41.03%. As the largest shareholder in WDC with 11.13% of the stake, The Vanguard Group, Inc. holds 35,343,124 shares worth 35,343,124. A second-largest stockholder of WDC, BlackRock Fund Advisors, holds 15,580,976 shares, controlling over 4.91% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in WDC, holding 12,401,900 shares or 3.90% stake. With a 3.05% stake in WDC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 9,674,998 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.33% of WDC stock, is the second-largest Mutual Fund holder. It holds 7,386,321 shares valued at 233.04 million. Vanguard 500 Index Fund holds 2.31% of the stake in WDC, owning 7,342,639 shares worth 231.66 million.
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 12 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 14 believe that the stock is worth HOLDING, 1 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 $60.00 and a low target of $28.00, the average target price over the next 12 months is $43.37. Based on these targets, WDC could surge 43.58% to reach the target high and fall by -33.0% to reach the target low. Reaching the average price target will result in a growth of 3.78% 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 2023 earnings on 08/03/2023. Analysts have provided yearly estimates in a range of $0.90 being high and -$1.11 being low. For WDC, this leads to a yearly average estimate of -$0.27. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Western Digital Corporation surprised analysts by -$0.18 when it reported $0.20 EPS against a consensus estimate of $0.38. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is -$0.04 and the low estimate is -$0.45. The average estimate for the next quarter is thus -$0.14.
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 7 Buys and 6 Sells. In these transactions, 48,595 shares were bought while 6,352 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 29 over the past year. The total number of shares bought during that period was 1,208,472 while 205,137 shares were sold.