Western Digital Corporation (WDC) Stock: Here’s Why It’s Headed Down


Western Digital Corporation (WDC) is working its way for to the top in the market in today’s trading session. The stock, focused in the technology sector, is presently trading at $36.24 after falling -5.65% so far today. As it relates to tech stocks, there are a number of factors that have the potential to lead to movement in the market. News is one of the most common reasons for movement. Here are the recent stories associated with WDC:

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Jun-11-19 08:00AM Western Digital Champions Zoned Storage, an Open Initiative to Redefine Data Centers for Zettabyte Scale
07:29AM Why Western Digital Stock Fell 27.2% in May
Jun-07-19 05:12PM Seagate Ups Ante with 16TB Capacity Storage Solutions (revised)
04:28PM Heres What Hedge Funds Think About Western Digital Corporation (WDC)
08:20AM Nvidia Stock Is Out of Favor on Wall Street Own It Anyway

Nonetheless, any time investors are making a decision to invest, prospective investors should look into far more than news, this is especially the case in the ever changing technology space. Here’s what’s happing when it comes to Western Digital Corporation.

The Performance That WDC Investors Have Experienced

Although a move down in a single session, like the fall that we’re seeing from Western Digital Corporation might cause fear in some investors, a single session move by itself shouldn’t be the reason for a decision to, or not to, invest in a company. It’s always important to take a look at trends experienced by the stock further out than a single trading day. As it relates to WDC, here are the movements that we have seen:

  • Weekly – In the past seven days, WDC has produced a change in value in the amount of -4.38%.
  • Past 30 Days – The monthly returns from Western Digital Corporation works out to -15.70%.
  • Quarterly – In the past three months, the company has produced a return on investment of -26.03%
  • Past 6 Months – Over the last 6 months, investors have seen a performance that works out to -13.01% from the stock.
  • YTD – Since the close of last year WDC has generated a ROI of -1.97%.
  • Full Year – Lastly, over the past year, we’ve seen movement in the amount of -56.34% from WDC. Throughout this period of time, the stock has traded at a high of -56.74% and a low price of 7.12%.

Rations That Investors Should Think About

Looking at various ratios having to do with a company generally gives traders a view of just how dangerous and/or potentially profitable a an investment option may be. Below are a few of the most important ratios to think about when looking at WDC.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the stock is going to go down. Throughout the sector, strong technology stocks can carry a lower short ratio. However, we tend to see quite a few short squeezes in the industry. Nonetheless, with regard to Western Digital Corporation, it’s short ratio clocks in at 2.71.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Essentially, they measure whether or not a company can pay for its debts when they mature based on current assets or quick assets. In the tech sector, companies are reliant on continued support from investors as they work to bring new technologies to market, the quick and current ratios can seem damning. However, quite a few gems in the tech sector come with strong quick and current ratios. When it comes to WDC, the quick and current ratios come to 1.30 and 2.10 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets currently owned by the company to the share price of the stock. as it relates to Western Digital Corporation, that ratio equates to 34.98.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the price of shares. In this case, the cash to share value ratio works out to 12.27.

Is Big Money Interested In Western Digital Corporation

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in WDC, here’s what we’re seeing:

  • Institutions – As it stands now, institutional investors own 90.20% of Western Digital Corporation. On the other hand, it’s worth mentioning that institutional ownership has seen a move of 4.07% over the past quarter.
  • Investors On The Inside – as it relates to insiders, those close to the situation currently own 0.30% of the company. Insider ownership of the company has changed by -1.91% throughout the last quarter.

Analyst Opinions Of Western Digital Corporation

Although it’s not a good idea to unknowingly follow the opinions of analysts, it is a smart idea to use their analysis in order to validate your own due diligence when it comes to making investment decisions in the technology industry. Below are the most recent moves that we’ve seen from analysts when it comes to WDC.

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Apr-30-19 Downgrade Craig Hallum Buy → Hold $49
Apr-26-19 Downgrade Robert W. Baird Neutral → Underperform $50 → $40
Apr-24-19 Reiterated BofA/Merrill Buy $55 → $60
Apr-16-19 Upgrade Deutsche Bank Hold → Buy $45 → $60
Apr-15-19 Upgrade Longbow Neutral → Buy $65

Financial Results And Expectations

What have ween seen from WDC in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – Currently, Wall St. analysts expect that the company will report earnings per diluted share that totals up to be 3.78, with 0.19 to be announced in the earnings announcement for the current quarter. Although this information isn’t earnings driven, since we are talking on the topic of analysts, Western Digital Corporation is presently graded as a 2.50 considering a scale that ranges from 1 to 5 on which 1 is the poorest analyst grade and 5 is the best rating.
  • 5-Year Sales – Throughout the past half decade, Western Digital Corporation has created a change in sales volume that comes to a total of 6.10%. Earnings per share through the past half decade have seen movement in the amount of 12.30%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings performance, or Q/Q data as it is generally referred to as in the human world, WDC has created a change in earnings that amounts to 0. The company has also seen movement in regard to revenue that amounts to -26.70%.

How Many Shares Of WDC Are Available?

Traders and investors seem to be interested in the total numbers of shares both available and outstanding. As far as Western Digital Corporation, currently there are 301.33M with a float of 291.98M. This means that of the total of 301.33M shares of WDC in existence today, 291.98M are able to trade hands in the public space.

I also like to pay attention to the short float. After all, if a high portion of the float is shorted, the overall feeling among traders is that the stock is headed for a steep decline. When it comes to WDC, the percentage of the float that is shorted currently sits at 5.57%. Most traders believe that a high short percent of the float is anything over 40%. Nonetheless, I’ve seen that any short ratio over 26% is usually a play that comes with hefty risk.

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