Western Digital Corporation (WDC) has received positive upgrades from two Wall Street analysts, which has significantly boosted its stock outlook. Bank of America has raised its price target from $610 to $732, maintaining a Buy rating, due to strong demand for hard disk drives (HDD) surpassing supply. Similarly, Cantor Fitzgerald has increased its target from $660 to $900 while issuing an Overweight rating, highlighting the semiconductor industry's potential growth.

Q4 Earnings Exceed Expectations

The upgrades follow a solid earnings report from Western Digital for Q4, where the company reported earnings per share (EPS) of $2.72, outperforming the anticipated $2.39. Revenue reached $3.34 billion, exceeding the expected $3.25 billion, reflecting a 45.5% increase year-over-year. Last year, EPS was reported at $1.36, marking a significant recovery.

The company’s return on equity was reported at 42.95%, with a net margin of 55.29%. Guidance for Q4 2026 EPS is projected between $3.10 and $3.40, while analysts forecast a full-year EPS of $9.60. Additionally, Western Digital has increased its quarterly dividend from $0.12 to $0.15, payable as of June 17, with a record date of June 5.

Institutional Ownership and Investor Interest

Institutional investors hold a substantial 92.51% stake in WDC, with BlackRock being the largest shareholder at 10.38%, representing approximately 35.77 million shares. Recent movements include Soroban Capital Partners increasing its position by 1,926.3% in Q2 and Fred Alger Management expanding its stake by 4,923.9% in Q3. Kathmere Capital Management also raised its holdings by 72.4% in Q1, which now totals 8,568 shares valued at around $2.32 million. Norges Bank entered a new position valued at approximately $788.7 million in Q4.

Analyst Consensus and Insider Activity

The current consensus among analysts indicates a “Moderate Buy” rating for WDC, with an average price target of $493.52 based on evaluations by 24 analysts, which include two Strong Buys, 18 Buys, and four Holds. On the insider front, selling activity has been noted; Director Bruce Kiddoo sold 750 shares at $528.52 on May 28, while insider Vidyadhara Gubbi sold 2,475 shares at $556.24 on June 1.