Western Digital (WDC) Stock Pulls Back After a 23% Month – Is This a Buying Opportunity?

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TLDR

• WDC fell 3.1% on Thursday, trading as low as $564.56, closing around $575.50–$576.93
• Volume was down 28% from the daily average, suggesting the move wasn’t panic-driven
• Q3 earnings beat estimates: EPS of $2.72 vs. $2.39 expected; revenue up 45.5% year-over-year
• Citigroup raised its price target by 37%, and Barclays lifted its target to $620 with an “overweight” rating
• Analysts give WDC a consensus “Moderate Buy” with a Zacks Rank #1 (Strong Buy)

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Western Digital (WDC) slipped 3.1% on Thursday, closing around $575–$577, even as broader markets mostly held steady. The stock touched a low of $564.56 during the session, pulling back from a recent run that had taken it to all-time highs.

Western Digital Corporation, WDC

Volume came in at around 6.4 million — about 28% below the average daily volume of 8.87 million. That lighter-than-usual trading suggests the dip was more of a breather than a signal of anything alarming.

The drop came despite a strong backdrop for the stock. WDC has climbed nearly 23% over the past month alone, well ahead of the broader tech sector’s 10% gain and the S&P 500’s 4.59% rise in the same period.

On the earnings front, Western Digital delivered a solid beat when it reported Q3 results on April 30. EPS came in at $2.72, ahead of the $2.39 consensus estimate. Revenue hit $3.34 billion, topping expectations of $3.25 billion and up 45.5% year-over-year.

For context, the company posted $1.36 EPS in the same quarter last year. That kind of growth is hard to ignore.

Looking ahead, WDC set Q4 2026 guidance at $3.10–$3.40 EPS. The next earnings report is expected to show EPS of $3.28 — which would represent roughly 97.6% growth versus the same quarter a year ago. Estimated revenue for that quarter sits at $3.69 billion.

For the full year, analysts are calling for $10.02 EPS and $12.87 billion in revenue.

Analyst Targets Keep Climbing

The analyst community has been busy revising targets higher. Citigroup hiked its price target by 37%, helping push WDC to all-time highs earlier this week. Barclays raised its target from $450 to $620 with an “overweight” rating as recently as May 27.

TD Cowen and Rosenblatt Securities both lifted their targets to $500 in May, each maintaining “buy” ratings. Morgan Stanley reaffirmed an “overweight” rating with a $488 target.

Of the 22 analysts covering the stock, 18 rate it a buy, one gives it a strong buy, and just three have it at hold.

The consensus average target sits at $424.33 — well below where the stock is currently trading, which tells you how fast this one has moved.

WDC trades at a forward P/E of 59.3, well above the industry average of 24.53. That premium reflects the market pricing in continued growth.

Dividend and Insider Activity

Western Digital also announced a quarterly dividend increase to $0.15 per share, up from $0.13. It will be paid June 17, with a record date of June 5. The annualized yield works out to around 0.1%.

On the insider front, executive Cynthia Tregillis sold 363 shares in April at $377.09, and Vidyadhara K. Gubbi sold 8,518 shares in March at $255.32. In total, insiders have sold around 37,408 shares over the past 90 days.

Institutional investors hold 92.51% of the stock, with several funds adding to positions in Q1 and Q2 2026.