Key Takeaways
- Bank of America increased Western Digital’s price target to $732 from $610 while keeping its Buy recommendation, driven by HDD demand exceeding available supply
- Cantor Fitzgerald pushed its target even higher to $900 from $660, maintaining an Overweight stance
- Western Digital exceeded Q4 expectations with EPS of $2.72 versus the $2.39 forecast and revenue of $3.34B compared to $3.25B anticipated
- Year-over-year revenue climbed 45.5%; the company also increased its quarterly dividend payment from $0.12 to $0.15 per share
- Institutional investors control 92.51% of shares, with BlackRock leading at 10.38% ownership
Western Digital (WDC) has captured renewed Wall Street interest following back-to-back analyst target increases. Shares began Monday’s session at $539.00, trading within an annual range of $63.67 to $799.87.
Western Digital Corporation, WDC
On July 1, Bank of America Securities analyst Wamsi Mohan elevated his WDC price objective from $610 to $732 while maintaining his Buy recommendation. His rationale centers on hard disk drive demand outstripping available supply, creating favorable pricing dynamics.
Mohan additionally noted that when examining exabyte shipment data, Western Digital’s conservative 25% year-over-year growth projection appears likely to be surpassed.
Several days prior on June 29, Cantor Fitzgerald took an even more aggressive stance—raising its target from $660 to $900 while keeping its Overweight designation. The firm pointed to semiconductor industry projections reaching $3 trillion by 2029 as a key factor.
Impressive Quarterly Results Support Bullish Outlook
These optimistic analyst views have solid fundamentals behind them. Western Digital delivered robust quarterly performance on April 30, with earnings per share reaching $2.72—surpassing the consensus estimate of $2.39 by $0.33. Revenue totaled $3.34 billion, exceeding the $3.25 billion projection.
This revenue performance marks a substantial 45.5% increase versus the prior-year quarter. A year earlier, EPS stood at only $1.36—highlighting the dramatic improvement trajectory.
The company achieved a return on equity of 42.95% alongside a net margin of 55.29%. Management guidance for Q4 2026 EPS ranges from $3.10 to $3.40, while Wall Street analysts project full-year EPS of $9.60.
Western Digital enhanced shareholder returns by raising its quarterly dividend from $0.12 to $0.15 per share. The payment was distributed on June 17 to shareholders of record as of June 5.
Institutional Ownership Remains Concentrated
Institutional investors collectively hold 92.51% of Western Digital shares. BlackRock maintains the largest position at 10.38%, representing approximately 35.77 million shares.
Recent activity includes notable increases from several funds: Soroban Capital Partners expanded its holdings by 1,926.3% in Q2, while Fred Alger Management grew its stake by an impressive 4,923.9% in Q3. Kathmere Capital Management boosted its position by 72.4% during Q1, bringing its total to 8,568 shares valued around $2.32 million.
Norges Bank established a fresh position in Q4 worth approximately $788.7 million.
Analyst consensus stands at “Moderate Buy” with an average price target of $493.52 based on 24 analysts—comprising two Strong Buy ratings, 18 Buy ratings, and four Hold ratings.
Regarding insider transactions, recent activity has trended toward selling. Director Bruce Kiddoo divested 750 shares at $528.52 on May 28. Insider Vidyadhara Gubbi sold 2,475 shares at $556.24 on June 1. Cumulative insider sales over the previous three months totaled 29,322 shares worth $12.77 million.
Western Digital maintains a market capitalization of $185.78 billion, trades at a P/E ratio of 32.18, and has a beta of 2.11.
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