Q2 STOCKS TO BUY

Western Digital Stock Rises After Mixed Results

The stock is reversing its earlier losses after its downbeat forecast

Deputy Editor
Oct 27, 2022 at 11:24 AM
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Western Digital Corp (NASDAQ:WDC) announced a mixed fiscal first-quarter report ahead of the open this morning, with earnings of 20 cents per share coming in lower than the 36 cents per share anticipated by analysts, while revenue beat estimates. The computer hardware name also issued a downbeat second-quarter forecast. At last glance, the stock was up 4.5% at $36.85, reversing its early-morning losses. 

WDC has been struggling to rally from its recent Sep. 29 low of $31.56 -- its lowest level since the start of the pandemic. However, the shares appear to have just found a floor at the $33 mark. Year-to-date, the equity is down 44%. 

Puts have been more popular than usual over the past 10 weeks, though calls and puts have been relatively even in terms of absolute volume. KHC's 50-day put/call volume ratio of 0.99 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 99% of readings from the past year. Today, 6,241 calls and 3,912 puts have been exchanged, with the weekly 10/28 40-strike call seeing the most activity.

Of the 18 analysts in coverage, eight carry a "buy" or better, with eight a "hold" and two a "strong sell." The 12-month consensus price target of $46.91 is a 27.3% premium to current levels. 

 
 

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