SAN JOSE, CA—Robert Soderbery, Executive Vice President and General Manager of the Flash Business at Western Digital Corp (NASDAQ:WDC), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Soderbery sold 30,767 shares of common stock on October 29. The shares were sold at a weighted average price of $68.0118, resulting in a total transaction value of approximately $2.1 million.
Following this transaction, Soderbery now holds 135,398 shares of Western Digital. The sale was executed over multiple transactions, with share prices ranging from $67.99 to $68.12.
This move comes as Western Digital continues to navigate the competitive landscape of the computer storage device industry. Investors will be keenly watching how this insider transaction might reflect on the company's future performance.
In other recent news, Western Digital reported a revenue of $4.1 billion in Q1, along with an increase in earnings per share (EPS) to $1.78 and a non-GAAP gross margin of 38.5%. Sequential growth was observed in both Flash and HDD segments, attributed to the AI Data Cycle demand. The company is also advancing the separation of its Flash and HDD businesses, aiming for completion by the end of the fiscal second quarter.
For the upcoming quarter, Western Digital anticipates revenue between $4.2 billion and $4.4 billion, with a projected EPS between $1.75 and $2.05. Despite operational dissynergies of approximately $30 million due to dual cost structures and an outflow of $14 million in free cash flow, the company reported record gross margins and increased capacity.
The company's operating income increased by 33% from the previous quarter to $884 million. Western Digital is aligning production with customer demand and has no plans to expand manufacturing capacity. These are recent developments that have been highlighted in the company's latest earnings call.
InvestingPro Insights
Western Digital's recent insider sale by Robert Soderbery occurs against a backdrop of mixed financial indicators for the company. According to InvestingPro data, Western Digital has shown impressive revenue growth, with a 48.91% increase in quarterly revenue as of Q1 2025. This strong top-line performance is complemented by a significant EBITDA growth of 304.02% over the last twelve months, suggesting improved operational efficiency.
Despite these positive trends, InvestingPro Tips highlight that 12 analysts have revised their earnings downwards for the upcoming period, which may explain Soderbery's decision to sell a portion of his holdings. However, it's worth noting that Western Digital is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.62, indicating potential undervaluation.
The company's market performance has been robust, with a one-year price total return of 60.33% as of the latest data. This aligns with another InvestingPro Tip suggesting that Western Digital has delivered a high return over the last year.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips that could provide deeper insights into Western Digital's financial health and market position. These additional tips could be particularly valuable in understanding the full context of insider transactions like Soderbery's recent sale.
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