Western Digital (WDC) stock hit an all-time high of $442.30 on Thursday, capping a near 893% run over the past 12 months. The stock opened at $434.52 on Friday and carries a market cap of around $147 billion.
Western Digital Corporation, WDC
The move came after the company delivered a strong Q3 earnings report. Revenue hit $3.34 billion, up roughly 45% year-over-year, and EPS came in at $2.72 — well ahead of what analysts were expecting.
Q4 guidance was equally impressive. Management projected revenue of $3.65 billion and EPS of $3.25, both above consensus estimates. Gross margins were guided to 51.5%, compared to a Street estimate of 48.6%.
Rosenblatt Securities raised its price target from $340 to $500, maintaining a Buy rating. That implies around 15% upside from current levels.
Several other firms have also bumped their targets recently. Cantor Fitzgerald moved to $660, Bernstein to $590, BofA to $575, and Mizuho to $470. UBS was more conservative at $375, but still cited tight supply and accelerating price increases.
Across the board, 18 analysts have a Buy rating on WDC, with four at Hold. The average price target sits at $340.91 — well below where the stock is trading now.
Western Digital also raised its quarterly dividend by 20% to $0.15 per share, a sign management is confident in cash flow generation.
Despite the strong results, the stock has seen intraday pullbacks as investors take profits after a massive YTD run.
Some coverage has flagged “sell the news” dynamics, pointing to rotation risk and the possibility that expectations have simply gotten too high.
InvestingPro data flags WDC as overvalued relative to its Fair Value estimate, placing it among the more stretched names in the market right now.
Insiders have been selling. In the last 90 days, company insiders offloaded 92,711 shares worth around $24.3 million. Two insiders sold in early March at prices between $268 and $270.
That said, institutional investors still own 92.51% of the stock, and several funds added to positions in Q1.
The company has a 52-week low of $43.60, putting the scale of this rally into perspective.
Western Digital’s 50-day moving average is $314.33 and its 200-day moving average is $233.19 — the stock is trading well above both.
The P/E ratio stands at 43.58, with a P/E/G ratio of 0.86 and a beta of 1.77, reflecting the stock’s volatility.
Revenue growth of 28% and a net margin of 35.52% round out a financial picture that has clearly caught the market’s attention.
The most recent earnings call transcript, available on Seeking Alpha, highlights management commentary on margin expansion, capex, supply constraints, and customer commitments.
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