Key Takeaways
- BofA Securities increased Western Digital’s price target to $732 from $610, keeping a Buy rating due to strong hard drive demand exceeding supply
- Cantor Fitzgerald upgraded its target even higherâto $900 from $660âmaintaining an Overweight stance
- Q4 results exceeded expectations: earnings per share hit $2.72 versus the $2.39 forecast, while revenue reached $3.34B against $3.25B estimates
- Year-over-year revenue climbed 45.5%; the company also boosted its quarterly dividend to $0.15 from $0.12
- Institutional investors control 92.51% of shares, with BlackRock leading at 10.38%
Western Digital (WDC) has captured renewed interest from major Wall Street analysts following back-to-back upgrades. Trading opened Monday at $539.00, within its 52-week trading band 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 thesis centers on a fundamental supply-demand mismatch: hard disk drive demand continues to outstrip available supply, creating favorable pricing dynamics.
Mohan noted that Western Digital’s conservative 25% year-over-year growth projection will likely prove too modest when measured against actual exabyte shipment data.
Days before, on June 29, Cantor Fitzgerald demonstrated even greater convictionâraising their target from $660 straight to $900 while retaining an Overweight designation. Their rationale extends to the semiconductor sector’s projected expansion to $3 trillion by 2029.
Exceptional Quarter Validates Analyst Confidence
These optimistic projections rest on solid fundamentals. Western Digital delivered impressive fourth-quarter results on April 30, with earnings per share of $2.72âsurpassing the Street’s $2.39 estimate by $0.33. Revenue totaled $3.34 billion, topping the anticipated $3.25 billion.
This represents a remarkable 45.5% revenue increase versus the prior-year period. For context, EPS stood at merely $1.36 a year earlierâhighlighting the company’s dramatic trajectory.
The company achieved a return on equity of 42.95% alongside an impressive 55.29% net margin. Management projects Q4 fiscal 2026 EPS between $3.10 and $3.40, while Wall Street analysts forecast full-year earnings of $9.60 per share.
Western Digital enhanced shareholder returns by increasing its quarterly dividend from $0.12 to $0.15 per share. Shareholders received this payment on June 17, with a June 5 record date.
Institutional Appetite Remains Robust
Institutional stakeholders control an overwhelming 92.51% of outstanding shares. BlackRock commands the largest position at 10.38%, representing approximately 35.77 million shares.
Recent activity includes dramatic position increases: Soroban Capital Partners expanded its holdings by 1,926.3% during Q2, while Fred Alger Management grew its stake by an eye-popping 4,923.9% in Q3. Kathmere Capital Management added 72.4% to its position in Q1, now holding 8,568 shares valued around $2.32 million.
Norges Bank established a fresh position in Q4 worth approximately $788.7 million.
The analyst community assigns a “Moderate Buy” consensus rating with a mean price target of $493.52 based on 24 ratingsâcomprising two Strong Buys, 18 Buys, and four Hold recommendations.
Insider transactions have tilted toward sales recently. Director Bruce Kiddoo divested 750 shares at $528.52 on May 28. Vidyadhara Gubbi, an insider, sold 2,475 shares at $556.24 on June 1. Combined insider sales over the past quarter totaled 29,322 shares with an aggregate value of $12.77 million.
WDC maintains a market capitalization of $185.78 billion, trades at a price-to-earnings ratio of 32.18, and exhibits a beta of 2.11.
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