In a recent transaction, Gene M. Zamiska, Senior Vice President and Principal Accounting Officer at Western Digital Corp (NASDAQ:WDC), sold 376 shares of common stock. The shares were sold at an average price of $64.47, amounting to a total of $24,240. This sale was part of a pre-arranged trading plan under Rule 10b5-1, adopted by Zamiska in December 2023.
Additionally, Zamiska disposed of 261 shares at a price of $63.84 per share to cover tax obligations related to the vesting of securities. Following these transactions, Zamiska holds 29,971 shares of Western Digital stock.
In other recent news, Citi has raised its outlook on SK Hynix shares, projecting an optimistic scenario for 4Q DRAM pricing. This comes amid market concerns of a potential decline due to oversupply and weakening demand for conventional memory. Citi's projections suggest a market shift towards High Bandwidth (NASDAQ:BAND) Memory (HBM) and premium memory products, which are expected to drive DRAM pricing upward. The firm also predicts a rebound in memory Average Selling Prices (ASPs) for SK Hynix in the second half of 2025, largely supported by Apple (NASDAQ:AAPL)'s adoption of the 12GB LPDDR5T/LPDDR5X.
In other recent developments, Western Digital reported a revenue of $4.1 billion for the fiscal first quarter of 2025, marking notable growth. The company's earnings per share increased to $1.78, with a non-GAAP gross margin of 38.5%. Western Digital is also progressing with the separation of its Flash and HDD businesses, aiming to complete the process by the end of the fiscal second quarter. For the next quarter, Western Digital anticipates revenue between $4.2 billion and $4.4 billion, with projected earnings per share between $1.75 and $2.05.
These recent developments indicate a transition within Western Digital, with a focus on optimizing profitability and executing strategic initiatives. The company's future outlook remains cautiously optimistic, with expected growth in Flash revenue and continued demand for high-capacity HDD products.
InvestingPro Insights
Western Digital Corp's recent insider transaction occurs against a backdrop of mixed financial indicators. According to InvestingPro data, the company's market capitalization stands at $23.0 billion, with a P/E ratio of 66.82, suggesting a relatively high valuation compared to earnings. However, the forward-looking P/E ratio (adjusted) for the last twelve months as of Q1 2025 is projected to be 32.55, indicating an expectation of improved earnings.
InvestingPro Tips highlight 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 for the last twelve months as of Q1 2025. This could suggest that the stock is potentially undervalued considering its growth prospects. The company has also demonstrated strong revenue growth, with a 26.61% increase in the last twelve months as of Q1 2025, and an impressive 48.91% quarterly growth in Q1 2025.
Despite the recent insider sale, Western Digital's financial outlook appears positive. An InvestingPro Tip notes that net income is expected to grow this year, and analysts predict the company will be profitable. This aligns with the stock's performance, which has shown a 41.61% price total return over the past year.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Western Digital Corp, providing deeper insights into the company's financial health and market position.
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