Monthly Stock Report: Western Digital Corporation (WDC)

Publication Date: September 22, 2024

Company Overview

Western Digital Corporation (WDC), headquartered in San Jose, California, is a leading entity in the technology sector, specializing in the computer hardware industry. Founded in 1970, the company focuses on the development, manufacturing, and marketing of data storage devices, including hard disk drives (HDDs), solid-state drives (SSDs), and flash-based embedded storage. Their products cater to diverse applications, ranging from mobile devices to gaming consoles and enterprise solutions. Operating under esteemed brands such as Western Digital and SanDisk, WDC has established itself as a key player in the dynamic market for data storage solutions. Analysts currently recommend a “buy” rating for the stock, with a target high price set at $115.00.

Financial Performance and Stock Analysis

Western Digital reported a strong total revenue of approximately $13 billion, underscoring its robust financial health. The company’s outstanding shares total 343,452,000, with about 5.71% (approximately 17,364,233 shares) currently shorted. This moderate short interest indicates a cautious sentiment among some investors, hinting at potential market volatility depending on future performance. The stock is currently priced at $66.75, representing significant growth potential considering the target high price of $115.00, reflecting an upside of approximately 72%. Additionally, a mean target price of $87.72 supports a positive outlook for the asset, reinforcing its attractiveness as a prospective investment.

Despite the impressive revenue figures, the absence of EBITDA data limits the overall financial evaluation, essential for gauging operational profitability. However, the current price being slightly over its 50-day moving average of $64.94 suggests potential upward momentum. Over the last year, the stock has shown considerable volatility, ranging from a low of $35.62 to a high of $81.55. With the current price approximately 18% below its 52-week high, investors should keep track of market trends and the stock’s performance trajectory moving forward.

Analyst Consensus and Recommendations

An assessment of 21 analyst opinions indicates a target high price of $115.00, a target low price of $61.12, and a target mean price of $87.72. The recommendation mean score stands at 2.1, favoring a purchase and emphasizing a favorable outlook. This consensus suggests investors might find value in the current pricing, especially as it aligns closer to the target mean and median prices. Overall, WDC appears to represent a promising investment opportunity, bolstered by strong projections and positive analyst sentiment within the data storage market.

Metric	Value
Market Cap	$22.9b
Total Debt	N/A
Total Cash	N/A
Shares Outstanding	343.5m
Float Shares	341.7m