Western Digital Sees Unusually High Options Volume (NASDAQ:WDC)

Posted by ABMN Staff on Jan 9th, 2026

Western Digital Corporation (NASDAQ:WDC – Get Free Report) saw some unusual options trading on Wednesday. Stock traders acquired 38,227 call options on the company. This is an increase of approximately 32% compared to the typical volume of 28,959 call options.

Western Digital News Summary

Here are the key news stories impacting Western Digital this week:

Positive Sentiment: Nvidia’s CES keynote and broader storage-sector enthusiasm sparked a large rally in memory/storage names, boosting WDC to new highs as markets priced in stronger AI-driven storage demand. Western Digital (WDC) Stock: Memory Storage Names Explode After Nvidia CES Keynote
Positive Sentiment: Inclusion in the Nasdaq-100 was cited as validation of Western Digital’s strategic shift toward AI/data-center storage, supporting institutional demand and credibility. Western Digital’s Nasdaq-100 Entry Caps Its AI-Driven Comeback
Positive Sentiment: Macro/sector tailwinds: analysts and commentators point to an AI-driven RAM/DRAM shortage and heated memory-chip buying early in 2026, which should lift demand for WDC’s storage products. Memory Chip Stocks are Red-Hot. Is it Too Late to Buy?
Positive Sentiment: Firm-level demand signs: investor letters and press coverage point to accelerated Q4 demand that helped WDC’s recent performance, reinforcing momentum into the next quarter. Accelerated Demand Lifted Western Digital Corp (WDC) in Q4
Positive Sentiment: Analysts expect double-digit EPS growth for the coming quarter, a near-term fundamental catalyst ahead of earnings. Western Digital Earnings Preview: What to Expect
Neutral Sentiment: Product refresh: SanDisk (WD’s consumer brand) rebranded/updated the Blue and Black SSD lines — positive for product-cycle freshness but not a major revenue inflection by itself. Sandisk Gives Its Western Digital Blue and Black Lineups a Makeover
Neutral Sentiment: Unusually large call-option activity was recorded (speculative bullish positioning), which can increase short-term volatility but isn’t a guaranteed directional signal.
Negative Sentiment: Profit-taking and volatility risk after the rapid run-up: several articles flagged a 15–17% intraday surge earlier in the week, making a near-term pullback or rotation likely as traders lock gains. Western Digital (WDC) Surges 16.8%: Is This an Indication of Further Gains?

Western Digital Stock Performance

Shares of WDC stock opened at $187.68 on Friday. The company’s fifty day moving average price is $168.96 and its 200-day moving average price is $117.70. The stock has a market cap of $64.17 billion, a PE ratio of 27.32, a price-to-earnings-growth ratio of 1.23 and a beta of 1.78. The company has a current ratio of 1.21, a quick ratio of 0.94 and a debt-to-equity ratio of 0.42. Western Digital has a 12 month low of $28.83 and a 12 month high of $221.23.

Western Digital (NASDAQ:WDC – Get Free Report) last issued its quarterly earnings results on Monday, April 7th. The data storage provider reported $1.78 earnings per share (EPS) for the quarter. Western Digital had a net margin of 21.37% and a return on equity of 30.89%. The company had revenue of $4.10 billion during the quarter. Western Digital has set its Q2 2026 guidance at 1.730-2.030 EPS. On average, equities analysts expect that Western Digital will post 4.89 EPS for the current fiscal year.

Western Digital Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Investors of record on Thursday, December 4th were paid a $0.125 dividend. This represents a $0.50 annualized dividend and a dividend yield of 0.3%. The ex-dividend date was Thursday, December 4th. This is an increase from Western Digital’s previous quarterly dividend of $0.10. Western Digital’s dividend payout ratio (DPR) is currently 7.28%.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on WDC shares. Rosenblatt Securities boosted their price target on Western Digital from $125.00 to $165.00 and gave the company a “buy” rating in a report on Friday, October 31st. Zacks Research upgraded Western Digital from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 13th. Morgan Stanley upped their target price on Western Digital to $228.00 and gave the company an “overweight” rating in a report on Wednesday, December 17th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Western Digital in a research note on Monday, December 29th. Finally, Sanford C. Bernstein upgraded shares of Western Digital to a “hold” rating in a report on Tuesday, September 16th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Western Digital has a consensus rating of “Moderate Buy” and a consensus price target of $173.65.

Read Our Latest Stock Analysis on WDC

Insider Buying and Selling

In related news, insider Cynthia L. Tregillis sold 2,801 shares of the firm’s stock in a transaction that occurred on Tuesday, December 2nd. The stock was sold at an average price of $160.57, for a total transaction of $449,756.57. Following the transaction, the insider directly owned 144,596 shares in the company, valued at $23,217,779.72. This trade represents a 1.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Irving Tan sold 20,000 shares of the business’s stock in a transaction that occurred on Monday, November 3rd. The shares were sold at an average price of $150.69, for a total value of $3,013,800.00. Following the completion of the sale, the chief executive officer owned 645,467 shares of the company’s stock, valued at $97,265,422.23. The trade was a 3.01% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 26,369 shares of company stock valued at $4,013,785. 0.18% of the stock is owned by insiders.

Institutional Investors Weigh In On Western Digital

Several hedge funds have recently added to or reduced their stakes in the stock. True Wealth Design LLC increased its stake in Western Digital by 59.7% during the 4th quarter. True Wealth Design LLC now owns 615 shares of the data storage provider’s stock valued at $106,000 after purchasing an additional 230 shares in the last quarter. NorthCrest Asset Manangement LLC increased its position in shares of Western Digital by 75.4% during the fourth quarter. NorthCrest Asset Manangement LLC now owns 9,465 shares of the data storage provider’s stock valued at $1,778,000 after acquiring an additional 4,068 shares in the last quarter. Wedmont Private Capital raised its holdings in Western Digital by 39.6% in the 4th quarter. Wedmont Private Capital now owns 3,035 shares of the data storage provider’s stock worth $523,000 after acquiring an additional 861 shares during the last quarter. Nordea Investment Management AB lifted its position in Western Digital by 42.1% in the 4th quarter. Nordea Investment Management AB now owns 98,062 shares of the data storage provider’s stock valued at $17,063,000 after acquiring an additional 29,060 shares in the last quarter. Finally, Cooper Financial Group bought a new position in Western Digital in the 4th quarter valued at approximately $282,000. 92.51% of the stock is owned by institutional investors.

About Western Digital

(Get Free Report)

Western Digital Corporation is a global data storage company that designs, manufactures and sells a broad range of storage devices and systems for personal, enterprise and cloud applications. Headquartered in San Jose, California, the company develops hard disk drives (HDDs), solid-state drives (SSDs), NAND flash components and finished storage products used in PCs, external storage, servers, network-attached storage (NAS) and embedded systems.

Its product portfolio spans consumer and commercial markets, including internal and external HDDs and SSDs, removable flash memory products and storage platforms for data center and enterprise environments.