Western Digital Corporation [WDC] fell -23.40% so far this year. What now?


Western Digital Corporation [NASDAQ: WDC] surged by $0.71 during the normal trading session on Wednesday and reaching a high of $50.52 during the day while it closed the day at $49.95. The company report on June 7, 2022 that Western Digital Announces Review of Strategic Alternatives.

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Western Digital Corporation, (“Western Digital”) (Nasdaq: WDC) today announced that it is reviewing potential strategic alternatives aimed at further optimizing long-term value for its shareholders. The Executive Committee of the Western Digital Board, chaired by Western Digital CEO, David Goeckeler, will oversee the assessment process and fully evaluate a comprehensive range of alternatives, including options for separating its market-leading Flash and HDD franchises. Following constructive dialogue with many of Western Digital’s shareholders, including one of the company’s largest investors, Elliott Investment Management L.P. (together with its affiliates, “Elliott”), this review builds on Western Digital’s ongoing efforts to drive innovation-led growth and create shareholder value.

“The Board is aligned in the belief that maximizing value creation warrants a comprehensive assessment of strategic alternatives focused on structural options for the company’s Flash and HDD businesses,” said Goeckeler. “Through this process, we are actively engaging in a broad range of strategic and financial alternatives that will help further optimize the value of Western Digital, including Elliott’s offer to invest incremental equity capital in our Flash Business. We look forward to continuing our constructive dialogue with Elliott as this process unfolds.”.

Western Digital Corporation stock has also loss -13.61% of its value over the past 7 days. However, WDC stock has inclined by 3.52% in the 3 months of the year. Over the past six months meanwhile, it has lost -10.21% and lost -23.40% year-on date.

The market cap for WDC stock reached $16.38 billion, with 313.00 million shares outstanding and 312.56 million shares in the current float. Compared to the average trading volume of 3.97M shares, WDC reached a trading volume of 4526371 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Western Digital Corporation [WDC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for WDC shares is $71.49 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on WDC stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

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 2.55, with the Price to Sales ratio for WDC stock in the period of the last 12 months amounting to 0.85. The Price to Book ratio for the last quarter was 1.30, with the Price to Cash per share for the same quarter was set at 7.64. Price to Free Cash Flow for WDC in the course of the last twelve months was 11.61 with Quick ratio for the last quarter at 1.30.

WDC stock trade performance evaluation

Western Digital Corporation [WDC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -13.61. With this latest performance, WDC shares dropped by -13.72% in over the last four-week period, additionally sinking by -10.21% over the last 6 months – not to mention a drop of -31.83% 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 34.81, with the RSI for the last a single of trading hit 27.10, and the three-weeks RSI is set at 39.87 for Western Digital Corporation [WDC]. The present Moving Average for the last 50 days of trading for this stock 54.68, while it was recorded at 52.03 for the last single week of trading, and 55.83 for the last 200 days.

Western Digital Corporation [WDC]: An insightful look at the core fundamentals

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 1.30 and a Current Ratio set at 2.10.

Earnings per share (EPS) analysis for Western Digital Corporation [WDC] stock

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%.

Western Digital Corporation [WDC]: Insider Ownership positions

There are presently around $12,398 million, or 83.10% of WDC stock, in the hands of institutional investors. The top three institutional holders of WDC stocks are: VANGUARD GROUP INC with ownership of 34,926,759, which is approximately -0.749% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 26,552,107 shares of the stock with an approximate value of $1.31 billion in WDC stocks shares; and STATE STREET CORP, currently with $639.93 million in WDC stock with ownership of nearly 3.092% 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 301 institutional holders increased their position in Western Digital Corporation [NASDAQ:WDC] by around 23,312,511 shares. Additionally, 351 investors decreased positions by around 25,470,808 shares, while 110 investors held positions by with 203,004,789 shares. The mentioned changes placed institutional holdings at 251,788,108 shares, according to the latest SEC report filing. WDC stock had 69 new institutional investments in for a total of 3,869,437 shares, while 115 institutional investors sold positions of 7,801,607 shares during the same period.