Susquehanna slashes price target on Western Digital Corporation [WDC] – find out why.

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Western Digital Corporation [NASDAQ: WDC] gained 1.47% or 0.83 points to close at $57.36 with a heavy trading volume of 5463595 shares. The company report on May 9, 2022 that Western Digital Unleashes New Era of Growth for Cloud Market With World’s First 22TB CMR and 26TB UltraSMR HDDs.

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New Innovation Reduces TCO for Hyperscale Cloud Customers and Accelerates Adoption of SMR.

What’s Next Western Digital Event – Building on significant technology innovations cultivated over decades, Western Digital (NASDAQ: WDC) today announced that it is sampling its new industry-leading 22TB¹ and 26TB UltraSMR HDDs to select hyperscale cloud customers, further expanding its areal density leadership and delivering customer value by driving TCO lower.

It opened the trading session at $57.636, the shares rose to $59.1603 and dropped to $56.28, the range by which the price of stock traded the whole day. The daily chart for WDC points out that the company has recorded 2.83% gains over the past six months. However, it is still -30.81% lower than its most recent low trading price.

If we look at the average trading volume of 4.12M shares, WDC reached to a volume of 5463595 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Western Digital Corporation [WDC]:

Susquehanna have made an estimate for Western Digital Corporation shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on April 14, 2022. While these analysts kept the previous recommendation, Mizuho raised their target price from $55 to $75. The new note on the price target was released on November 23, 2021, representing the official price target for Western Digital Corporation stock. Previously, the target price had yet another drop from $100 to $80, while Wells Fargo kept a Overweight rating on WDC stock. On October 29, 2021, analysts decreased their price target for WDC shares from 66 to 62.

The Average True Range (ATR) for Western Digital Corporation is set at 2.44, with the Price to Sales ratio for WDC stock in the period of the last 12 months amounting to 0.96. The Price to Book ratio for the last quarter was 1.49, with the Price to Cash per share for the same quarter was set at 7.85. Price to Free Cash Flow for WDC in the course of the last twelve months was 18.45 with Quick ratio for the last quarter at 1.20.

Trading performance analysis for WDC stock

Western Digital Corporation [WDC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -7.06. With this latest performance, WDC shares gained by 21.53% in over the last four-week period, additionally plugging by 2.83% over the last 6 months – not to mention a drop of -15.83% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for WDC stock in for the last two-week period is set at 59.76, with the RSI for the last a single of trading hit 58.73, and the three-weeks RSI is set at 58.60 for Western Digital Corporation [WDC]. The present Moving Average for the last 50 days of trading for this stock 50.32, while it was recorded at 59.48 for the last single week of trading, and 56.59 for the last 200 days.

Western Digital Corporation [WDC]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Western Digital Corporation [WDC] shares currently have an operating margin of +7.39 and a Gross Margin at +27.17. Western Digital Corporation’s Net Margin is presently recorded at +4.85.

Return on Total Capital for WDC is now 6.40, given the latest momentum, and Return on Invested Capital for the company is 4.27. Return on Equity for this stock inclined to 8.10, with Return on Assets sitting at 3.17. When it comes to the capital structure of this company, Western Digital Corporation [WDC] has a Total Debt to Total Equity ratio set at 83.59. Additionally, WDC Total Debt to Total Capital is recorded at 45.53, with Total Debt to Total Assets ending up at 34.30. Long-Term Debt to Equity for the company is recorded at 80.94, with the Long-Term Debt to Total Capital now at 44.09.

Reflecting on the efficiency of the workforce at the company, Western Digital Corporation [WDC] managed to generate an average of $12,515 per employee. Receivables Turnover for the company is 7.30 with a Total Asset Turnover recorded at a value of 0.65.Western Digital Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.90.

Western Digital Corporation [WDC]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for WDC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Western Digital Corporation go to 22.80%.

An analysis of insider ownership at Western Digital Corporation [WDC]

There are presently around $14,254 million, or 83.30% of WDC stock, in the hands of institutional investors. The top three institutional holders of WDC stocks are: VANGUARD GROUP INC with ownership of 35,190,258, which is approximately 5.145% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 25,026,324 shares of the stock with an approximate value of $1.41 billion in WDC stocks shares; and STATE STREET CORP, currently with $712.63 million in WDC stock with ownership of nearly 4.862% of the company’s market capitalization.

Positions in Western Digital Corporation stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 320 institutional holders increased their position in Western Digital Corporation [NASDAQ:WDC] by around 20,155,811 shares. Additionally, 331 investors decreased positions by around 20,586,423 shares, while 110 investors held positions by with 211,407,482 shares. The mentioned changes placed institutional holdings at 252,149,716 shares, according to the latest SEC report filing. WDC stock had 98 new institutional investments in for a total of 5,232,795 shares, while 92 institutional investors sold positions of 6,385,347 shares during the same period.