How Do Analysts View Western Digital?
Can Western Digital Drive a Turnaround in 2016?
Analysts’ recommendations
Of the 32 analysts covering Western Digital’s (WDC) stock, 19 have given it a “buy” recommendation and 13 have recommended a “hold.” The analysts’ stock price target for the company is $57, with a median target estimate of $56. WDC is trading at a discount of 42.5% to analysts’ median estimates.
WDC increased its dividend yield from 1.7% in fiscal 3Q14 to 2.6% in fiscal 3Q15 and 5.1% in fiscal 3Q16. In comparison, peer companies SanDisk (SNDK), NetApp (NTAP), and Seagate (STX) have dividend yields of 2%, 2.7%, and 12.5%, respectively, in their last reported quarters. SanDisk accounts for 2.6% of the VanEck Vectors Semiconductor ETF (SMH).
Shareholder returns and stock trends
WDC generated investor returns of -57.5% in the trailing 12-month period and -8.7% in the trailing one-month period. In comparison, it generated -45.6% in 2015 and -34% YTD (year-to-date). The company’s share price rose by 11.2% in the trailing five-day period.
Moving averages
On May 20, 2016, WDC closed the trading day at $39.56. Based on this figure, here’s how the stock fared in terms of its moving averages:
13.1% below its 100-day moving average of $45.53
8.3% below its 50-day moving average of $43.13
0.32% above its 20-day moving average of $39.43
MACD and RSI
The MACD (moving average convergence divergence) is the difference between a company’s short-term and long-term moving averages. WDC’s 14-day MACD is 1.16. This positive figure indicates an upward trading trend.
The company’s 14-day RSI (relative strength index) is 47, which shows that its stock has been oversold. Generally, if an RSI is above 70, it indicates that a stock has been overbought. An RSI figure of below 30 suggests that a stock has been oversold.
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