Western Digital (NASDAQ:WDC) Shares Gap Down - Here's Why

Western Digital Co. (NASDAQ:WDC - Get Free Report)'s stock price gapped down prior to trading on Thursday . The stock had previously closed at $63.54, but opened at $61.92. Western Digital shares last traded at $61.63, with a volume of 1,345,131 shares.

Analyst Upgrades and Downgrades

WDC has been the topic of several recent research reports. The Goldman Sachs Group dropped their target price on shares of Western Digital from $79.00 to $72.00 and set a "neutral" rating on the stock in a report on Thursday, October 24th. BNP Paribas cut their price objective on shares of Western Digital from $95.00 to $90.00 in a report on Thursday, October 24th. Barclays upped their target price on Western Digital from $80.00 to $90.00 and gave the stock an "overweight" rating in a report on Friday, October 25th. TD Cowen cut their price target on Western Digital from $95.00 to $80.00 and set a "buy" rating on the stock in a report on Friday, September 13th. Finally, UBS Group decreased their price objective on Western Digital from $74.00 to $72.00 and set a "neutral" rating for the company in a research note on Thursday, October 24th. Seven equities research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $86.33.

Western Digital Stock Performance

The company has a quick ratio of 0.91, a current ratio of 1.47 and a debt-to-equity ratio of 0.49. The stock has a market capitalization of $20.61 billion, a PE ratio of 35.07 and a beta of 1.42. The firm has a 50 day moving average price of $67.59 and a 200-day moving average price of $68.56.

Western Digital (NASDAQ:WDC - Get Free Report) last posted its quarterly earnings results on Thursday, October 24th. The data storage provider reported $1.78 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.55 by $0.23. The company had revenue of $4.10 billion during the quarter, compared to analyst estimates of $4.12 billion. Western Digital had a net margin of 4.81% and a return on equity of 8.57%. Western Digital's revenue for the quarter was up 48.9% compared to the same quarter last year. During the same period last year, the firm posted ($1.97) EPS. Research analysts expect that Western Digital Co. will post 6.56 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Robert Soderbery sold 30,767 shares of the company's stock in a transaction that occurred on Tuesday, October 29th. The stock was sold at an average price of $68.01, for a total transaction of $2,092,463.67. Following the completion of the transaction, the executive vice president now directly owns 135,398 shares of the company's stock, valued at $9,208,417.98. This represents a 18.52 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO David Goeckeler sold 75,000 shares of the stock in a transaction that occurred on Thursday, September 26th. The shares were sold at an average price of $70.32, for a total value of $5,274,000.00. Following the transaction, the chief executive officer now owns 896,630 shares in the company, valued at $63,051,021.60. This trade represents a 7.72 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 184,107 shares of company stock valued at $13,042,381. Company insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Western Digital

A number of large investors have recently added to or reduced their stakes in the stock. Eastern Bank acquired a new position in shares of Western Digital during the 3rd quarter worth about $27,000. Fairfield Financial Advisors LTD purchased a new position in shares of Western Digital in the second quarter valued at approximately $29,000. True Wealth Design LLC boosted its stake in shares of Western Digital by 2,184.2% in the third quarter. True Wealth Design LLC now owns 434 shares of the data storage provider's stock worth $30,000 after acquiring an additional 415 shares during the last quarter. 1620 Investment Advisors Inc. purchased a new stake in shares of Western Digital during the second quarter worth approximately $34,000. Finally, Ashton Thomas Private Wealth LLC acquired a new position in Western Digital in the 2nd quarter valued at $34,000. 92.51% of the stock is currently owned by institutional investors and hedge funds.

Western Digital Company Profile

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for desktop and notebook personal computers (PCs), gaming consoles, and set top boxes; and flash-based embedded storage products for mobile phones, tablets, notebook PCs, and other portable and wearable devices, as well as automotive, Internet of Things, industrial, and connected home applications.