Western Digital Corp’s (WDC) “Buy” Rating Reiterated at Benchmark Co.
Western Digital Corp (NASDAQ:WDC)‘s stock had its “buy” rating restated by analysts at Benchmark Co. in a report released on Wednesday. They currently have a $135.00 target price on the data storage provider’s stock. Benchmark Co.’s price objective suggests a potential upside of 53.36% from the company’s current price.
The analysts wrote, “Western Digital continues to report progress on the ramp of its 64 layer BiCS NAND Chip which along with constrained supply bode well for WDC. Company Update Rating: Buy Current Price $88.03 Price Target $135.00 52-Wk Range $40.98 – $91.00 Market Cap (B) $25.6 Enterprise Value (B) $31.8 Shares Outstanding 291,240,000 Avg. Volume (30 day) 4,190,253 Float 290,500,000 Dividend Yield % 2.27 Annual Dividend $2.00 Sector Weight Market Weight Mark Miller 925-648-2692 [email protected]/* */ FY Jun Q1 Q2 Q3 Q4 Total P/E EPS 2016A $1.56A $1.60A $1.21A $0.79A $5.16A 17.1 2017E $1.18A $2.30A $2.39A $2.62E $8.49E 10.4 2018E $3.31E $3.51E $3.24E $2.95E $13.01E 6.8 Revenue (m) 2016A $3,360A $3,317A $2,822A $3,495A $12,994A 2017E $4,714A $4,888A $4,649A $4,800E $19,051E 2018E $5,100E $5,250E $5,050E $4,850E $20,250E Western Digital Corp. (WDC) May 24, 2017 Page 2 Checks Indicate Normal Channel HDD Inventories and Continued Strong Demand for NAND Flash The June quarter has historically been the slowest quarter of the year for hard drive sales when inventories rise and pricing can slip.””
Other equities analysts have also recently issued research reports about the stock. Cowen and Company increased their price objective on shares of Western Digital Corp to $89.00 in a research note on Thursday, January 26th. Royal Bank of Canada increased their price objective on shares of Western Digital Corp to $90.00 in a research note on Thursday, January 26th. TheStreet upgraded shares of Western Digital Corp from a “c” rating to a “b-” rating in a research note on Wednesday, January 25th. Jefferies Group LLC increased their price objective on shares of Western Digital Corp from $80.00 to $90.00 and gave the stock a “buy” rating in a research note on Tuesday, January 24th. Finally, Brean Capital reiterated a “buy” rating and issued a $100.00 price objective on shares of Western Digital Corp in a research note on Thursday, January 26th. Six investment analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and one has issued a strong buy rating to the company. The stock has an average rating of “Buy” and a consensus price target of $94.28.
Shares of Western Digital Corp (NASDAQ:WDC) opened at 88.03 on Wednesday. The firm has a 50-day moving average of $86.47 and a 200 day moving average of $75.42. The company’s market cap is $25.64 billion. Western Digital Corp has a 12 month low of $41.64 and a 12 month high of $91.00. Western Digital Corp also was the recipient of some unusual options trading activity on Monday. Investors purchased 3,610 call options on the company. This is an increase of approximately 192% compared to the average volume of 1,236 call options.
Western Digital Corp (NASDAQ:WDC) last announced its quarterly earnings results on Thursday, April 27th. The data storage provider reported $2.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.85 by $0.22. The firm had revenue of $4.65 billion for the quarter, compared to the consensus estimate of $4.57 billion. Western Digital Corp had a negative net margin of 2.56% and a positive return on equity of 13.38%. The business’s quarterly revenue was up 64.7% compared to the same quarter last year. During the same quarter last year, the firm posted $1.21 EPS. On average, analysts expect that Western Digital Corp will post $8.88 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, July 17th. Stockholders of record on Friday, June 30th will be paid a dividend of $0.50 per share. The ex-dividend date is Wednesday, June 28th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.27%. Western Digital Corp’s payout ratio is -133.33%.
In related news, insider Mark P. Long sold 57,846 shares of the company’s stock in a transaction that occurred on Monday, May 1st. The stock was sold at an average price of $87.02, for a total value of $5,033,758.92. Following the sale, the insider now owns 114,522 shares in the company, valued at $9,965,704.44. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Jacqueline Demaria sold 21,410 shares of the company’s stock in a transaction that occurred on Monday, May 1st. The shares were sold at an average price of $87.02, for a total value of $1,863,098.20. The disclosure for this sale can be found here. Insiders have sold 210,714 shares of company stock worth $17,991,280 in the last 90 days. Insiders own 0.46% of the company’s stock.
A number of large investors have recently modified their holdings of the stock. American Beacon Advisors Inc. bought a new stake in Western Digital Corp during the first quarter valued at approximately $111,000. Acrospire Investment Management LLC bought a new stake in Western Digital Corp during the first quarter valued at approximately $112,000. Reilly Financial Advisors LLC raised its stake in Western Digital Corp by 49.8% in the first quarter. Reilly Financial Advisors LLC now owns 1,383 shares of the data storage provider’s stock valued at $114,000 after buying an additional 460 shares in the last quarter. Harbour Capital Advisors LLC bought a new stake in Western Digital Corp during the first quarter valued at approximately $117,000. Finally, SRS Capital Advisors Inc. raised its stake in Western Digital Corp by 26.7% in the first quarter. SRS Capital Advisors Inc. now owns 1,453 shares of the data storage provider’s stock valued at $119,000 after buying an additional 306 shares in the last quarter. Hedge funds and other institutional investors own 88.22% of the company’s stock.
About Western Digital Corp
Western Digital Corporation (Western Digital) is a developer, manufacturer and provider of data storage devices and solutions that address the needs of the information technology (IT) industry and the infrastructure that enables the proliferation of data in virtually every industry. The Company’s portfolio of offerings addresses three categories: Datacenter Devices and Solutions (capacity and performance enterprise hard disk drives (HDDs), enterprise solid state drives (SSDs), datacenter software and system solutions); Client Devices (mobile, desktop, gaming and digital video hard drives, client SSDs, embedded products and wafers), and Client Solutions (removable products, hard drive content solutions and flash content solutions).
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