Bull’s Eye: Experts’ views on Western Digital Corporation (WDC)

On December 03, 2019, Western Digital Corporation (NASDAQ:WDC) shares lost -1.63% or -0.79 points to close at $47.71 with a thin trading volume of 4.253 million shares. It opened the trading session at $47.5, the shares rose to $47.78 and dropped to $46.65, the range by which the price of stock traded the whole day. The company now has a market cap of $14.2 billion and currently has 297.88 million outstanding shares. Western Digital Corporation (WDC) stock has plunged -11.37 percent of market value in 21 trading days.

WDC stock’s trailing 3-year beta is 1.79, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$4.68 share in the trailing 52 weeks. The stock’s value surged 29.05 percent year to date (YTD) compared to a rise of 5.11 percent in 52 week’s period. The firm’s shares are still trading -26.95 percent below its 1-year high of $65.31 and 41.03 percent up from 52-week low of $33.83. The average consensus ranking on the company is 2.5, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Western Digital Corporation (WDC) is most likely going to rise 29.95 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $89-month high price target. This represents a whopping 86.54 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $63, which means a return possibility of 32.05 percent in comparison with the closing price of the stock of $47.71 on December 03. The lowest price set for the stock is $38 — just above -20.35 percent from WDC share price now.

Past records have indicated that shares in Western Digital Corporation rose on 20 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.

Let’s take a glimpse at some insider activity at Western Digital Corporation (NASDAQ:WDC) and observe the pattern. The earliest insider trade happened on 11/08/2019. MASSENGILL MATTHEW E parted with a total of 3.11 thousand shares of the firm at average share price of $52.17. The total amount for the sale was set at $162.25 thousand. On completing this exchange, the Director account balance was 19.78 thousand shares. The stock lost -7.03 percent from that insider sale. On 11/05/2019, CORDANO MICHAEL D, President and COO, did a sale of 0.3 thousand shares at a price of $55.09 per share. This got rid of 16.53 thousand shares from the insider’s fortune and the stock experienced a -11.96 percent retreat in price since the news became public. This exchange saw 271.31 thousand shares get out from the President and COO account.

On 11/04/2019, President and COO CORDANO MICHAEL D recorded a sale transaction valued at $566.22 thousand. The sale at $55.16 a share has eliminated 10.27 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -12.07 percent decrease since the transaction reporting date. The company insider is left with 271.61 thousand shares remaining in the account. RAY MICHAEL CHARLES, who works as EVP, Chief Legal Officer & Sec at the company, performed a sale of 92.04 thousand shares in a transaction worth $5.52 million. The disposal recorded on 09/05/2019 was priced at $59.99 per share. The stock price plunged -19.15 percent since the transaction. RAY MICHAEL CHARLES currently holds a stake of 51.77 thousand in WDC stock which is worth $2.47 million after the insider selling.

The stock is lingering around the initial support level of $46.98. After this, the following support is at the zone of $46.25. Up until the time the WDC stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 36.34 on the daily chart, and this may be a cause for comfort. In case the price goes below $46.25 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $48.11 level may cause a pull-back move approaching $48.51 mark.

The industry WDC deals with has an average P/E of 16.1. Its P/B ratio is standing at 1.5X compared to the 3.6 industry average. It is additionally sporting a 0.9 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.7. Western Digital Corporation has a 18.7% gross profit margin, with its operating margin around -4.7%. Alongside this, the company’s net profit margin currently stands at -9.9%.