Western Digital Stock Buy Hold or Sell Recommendation
| WDC Stock | USD 65.88 2.04 3.20% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Western Digital is 'Hold'. Macroaxis provides Western Digital buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WDC positions.
Check out Western Digital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Western Stock refer to our How to Trade Western Stock guide. In addition, we conduct extensive research on individual companies such as Western and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Western Digital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment.
Western |
Execute Western Digital Buy or Sell Advice
The Western recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Western Digital. Macroaxis does not own or have any residual interests in Western Digital or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Western Digital's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Western Digital Trading Alerts and Improvement Suggestions
| The company reported the last year's revenue of 13 B. Reported Net Loss for the year was (798 M) with profit before taxes, overhead, and interest of 5.87 B. | |
| Western Digital has about 2.05 B in cash with (294 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.45. | |
| Western Digital has a poor financial position based on the latest SEC disclosures | |
| Over 97.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from gurufocus.com: Western Digital Corp Stock Price Down 3.16 percent on Nov 20 |
Western Digital Returns Distribution Density
The distribution of Western Digital's historical returns is an attempt to chart the uncertainty of Western Digital's future price movements. The chart of the probability distribution of Western Digital daily returns describes the distribution of returns around its average expected value. We use Western Digital price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Western Digital returns is essential to provide solid investment advice for Western Digital.
| Mean Return | 0.01 | Value At Risk | -2.94 | Potential Upside | 4.06 | Standard Deviation | 2.13 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Western Digital historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Western Stock Institutional Investors
| Shares | Barclays Plc | 2024-06-30 | 6.3 M | Norges Bank | 2024-06-30 | 5.9 M | Ameriprise Financial Inc | 2024-06-30 | 5.5 M | Millennium Management Llc | 2024-06-30 | 5 M | Citadel Advisors Llc | 2024-06-30 | 4.7 M | Alliancebernstein L.p. | 2024-06-30 | 4.3 M | Nuveen Asset Management, Llc | 2024-06-30 | 3.7 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 3.7 M | Two Sigma Advisers, Llc | 2024-06-30 | 3.7 M | Vanguard Group Inc | 2024-09-30 | 41 M | Blackrock Inc | 2024-06-30 | 28.1 M |
Western Digital Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 200M | (546M) | (22M) | (60M) | 356M | 373.8M | |
| Change In Cash | (407M) | 322M | (1.0B) | (304M) | (144M) | (136.8M) | |
| Free Cash Flow | 177M | 895M | 773M | (1.2B) | (781M) | (742.0M) | |
| Depreciation | 1.6B | 1.2B | 929M | 828M | 568M | 633.4M | |
| Other Non Cash Items | 39M | (36M) | 86M | 96M | 109M | 111.2M | |
| Capital Expenditures | 647M | 1.0B | 1.1B | 807M | 487M | 451.0M | |
| Net Income | (250M) | 821M | 1.5B | (1.7B) | (798M) | (758.1M) | |
| End Period Cash Flow | 3.0B | 3.4B | 2.3B | 2.0B | 1.9B | 2.1B | |
| Investments | 278M | 7M | 6M | (762M) | (27M) | (25.7M) | |
| Net Borrowings | (982M) | (886M) | (1.7B) | (19M) | (17.1M) | (16.2M) | |
| Dividends Paid | 595M | 22M | 90M | 80M | 72M | 68.4M | |
| Change To Netincome | 711M | 225M | 482M | 348M | 400.2M | 294.3M |
Western Digital Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Western Digital or Technology Hardware, Storage & Peripherals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Western Digital's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Western stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.12 | |
β | Beta against Dow Jones | 1.33 | |
σ | Overall volatility | 2.18 | |
Ir | Information ratio | -0.04 |
Western Digital Volatility Alert
Western Digital has relatively low volatility with skewness of 0.59 and kurtosis of 1.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Western Digital's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Western Digital's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Western Digital Fundamentals Vs Peers
Comparing Western Digital's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Western Digital's direct or indirect competition across all of the common fundamentals between Western Digital and the related equities. This way, we can detect undervalued stocks with similar characteristics as Western Digital or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Western Digital's fundamental indicators could also be used in its relative valuation, which is a method of valuing Western Digital by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Western Digital to competition |
| Fundamentals | Western Digital | Peer Average |
| Return On Equity | 0.0332 | -0.31 |
| Return On Asset | 0.0404 | -0.14 |
| Profit Margin | 0.03 % | (1.27) % |
| Operating Margin | 0.15 % | (5.51) % |
| Current Valuation | 27.99 B | 16.62 B |
| Shares Outstanding | 345.71 M | 571.82 M |
| Shares Owned By Insiders | 0.31 % | 10.09 % |
| Shares Owned By Institutions | 96.69 % | 39.21 % |
| Number Of Shares Shorted | 16.25 M | 4.71 M |
| Price To Earning | 31.52 X | 28.72 X |
| Price To Book | 1.90 X | 9.51 X |
| Price To Sales | 1.54 X | 11.42 X |
| Revenue | 13 B | 9.43 B |
| Gross Profit | 5.87 B | 27.38 B |
| EBITDA | 324 M | 3.9 B |
| Net Income | (798 M) | 570.98 M |
| Cash And Equivalents | 2.05 B | 2.7 B |
| Cash Per Share | 6.45 X | 5.01 X |
| Total Debt | 7.43 B | 5.32 B |
| Debt To Equity | 0.61 % | 48.70 % |
| Current Ratio | 1.83 X | 2.16 X |
| Book Value Per Share | 33.65 X | 1.93 K |
| Cash Flow From Operations | (294 M) | 971.22 M |
| Short Ratio | 3.04 X | 4.00 X |
| Earnings Per Share | 0.91 X | 3.12 X |
| Price To Earnings To Growth | 490.33 X | 4.89 X |
| Target Price | 89.9 | |
| Number Of Employees | 51 K | 18.84 K |
| Beta | 1.39 | -0.15 |
| Market Capitalization | 22.07 B | 19.03 B |
| Total Asset | 24.19 B | 29.47 B |
| Retained Earnings | 6.78 B | 9.33 B |
| Working Capital | 1.97 B | 1.48 B |
Note: Disposition of 6095 shares by Robert Soderbery of Western Digital at 66.75 subject to Rule 16b-3 [view details]
Western Digital Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Western . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Western Digital Buy or Sell Advice
When is the right time to buy or sell Western Digital? Buying financial instruments such as Western Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Western Digital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Western Digital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Western Stock refer to our How to Trade Western Stock guide.You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Is Technology Hardware, Storage & Peripherals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Western Digital. If investors know Western will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Western Digital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.96) | Earnings Share 0.91 | Revenue Per Share 43.315 | Quarterly Revenue Growth (0.41) | Return On Assets 0.0404 |
The market value of Western Digital is measured differently than its book value, which is the value of Western that is recorded on the company's balance sheet. Investors also form their own opinion of Western Digital's value that differs from its market value or its book value, called intrinsic value, which is Western Digital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Western Digital's market value can be influenced by many factors that don't directly affect Western Digital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Western Digital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Western Digital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Western Digital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.