Key Highlights
- On May 1, CEO Irving Tan offloaded 20,000 WDC shares worth approximately $8.24M through a pre-arranged 10b5-1 plan
- Vidyadhara Gubbi, Chief of Global Operations, sold 4,674 shares on May 4 for roughly $2.07M
- WDC shares have climbed to $465.26, approaching the 52-week peak of $480.11
- The company exceeded Q3 FY2026 expectations with EPS of $2.72 compared to analyst estimates of $2.36
- Insider activity shows 32 sales and no purchases over the last 12 months
Executives at Western Digital have unloaded more than $10 million worth of company stock in recent days, coinciding with WDC shares trading near record territory.
Western Digital Corporation, WDC
On May 1, 2026, CEO Irving Tan executed a sale of 20,000 shares, with prices ranging from $406.52 to $415.02 per share. The transaction totaled around $8.24 million.
This sale occurred through a pre-established Rule 10b5-1 trading arrangement, which Tan initiated on May 12, 2025. Such plans allow insiders to sell shares according to a predetermined schedule, meaning the timing doesn’t necessarily reflect sentiment about near-term prospects.
Following this transaction, Tan maintains direct ownership of 598,150 Western Digital shares.
Shortly afterward, on May 4, Vidyadhara Gubbi, Chief of Global Operations, disposed of 4,674 shares at a price of $443.19 per share. This sale generated approximately $2.07 million.
After completing this transaction, Gubbi’s holdings stand at 90,041 shares of Western Digital.
Throughout the past twelve months, Gubbi has sold 67,047 shares total while making no purchases.
Absence of Insider Purchases
The overall insider trading pattern at Western Digital reveals a decidedly one-directional trend. The past year has witnessed 32 insider sales with not a single insider purchase recorded.
However, insider selling by itself isn’t necessarily a red flag — company leaders frequently liquidate shares for tax planning, diversification, or other personal financial objectives, particularly following substantial price appreciation.
And Western Digital has certainly experienced substantial appreciation. Shares have delivered approximately 938% returns over the trailing twelve months, a remarkable rally that would naturally encourage some executives to lock in gains.
When Gubbi executed his sale, WDC was priced at $443.19. Shares have subsequently advanced to $465.26, hovering near the 52-week high of $480.11.
Robust Financial Performance Fueling the Surge
Western Digital delivered impressive numbers for its third quarter of fiscal 2026. Earnings per share reached $2.72, surpassing the consensus estimate of $2.36 by approximately 15%.
Revenue totaled $3.34 billion, exceeding expectations of $3.23 billion.
Management attributed the performance to robust demand throughout its business units, with cloud storage solutions delivering particularly strong results.
Following the earnings announcement, seventeen analysts upgraded their earnings projections.
Based on recent figures, WDC currently trades at a P/E ratio of 43.57. On the day of Gubbi’s transaction, the P/E stood at 27.96, which was below the industry median of 32.1.
Nevertheless, according to GuruFocus’s valuation framework, the stock appears significantly overvalued, with the GF Value model estimating intrinsic worth at $81.25 — resulting in a price-to-GF-Value multiple of 5.45.
At the time of Gubbi’s sale, Western Digital’s market capitalization was approximately $171 billion.
The latest documented insider transaction remains Gubbi’s May 4 sale at $443.19, while WDC currently changes hands at $465.26, positioned near the upper boundary of its 52-week trading range.
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