SAN JOSE, CA—Gene M. Zamiska, Senior Vice President and Principal Accounting Officer at Western Digital Corp (NASDAQ:WDC), executed a sale of company stock as per a recent SEC filing. On November 26, Zamiska sold 658 shares of Western Digital common stock at a price of $69.99 per share, amounting to a total transaction value of $46,053. This sale was conducted under a pre-established Rule 10b5-1 trading plan, which Zamiska had adopted on December 1, 2023.
In addition to the sale, the filing noted a separate transaction on November 25, where 450 shares were withheld to cover tax obligations related to the vesting of securities, priced at $69.425 per share. Following these transactions, Zamiska holds 28,863 shares of Western Digital stock.
In other recent news, Western Digital has achieved significant growth in its fiscal first quarter of 2025, reporting revenue of $4.1 billion and an increase in earnings per share to $1.78. In addition, the company has expanded its 2021 Long-Term Incentive Plan by 6 million shares, aimed at offering equity-based compensation to key employees. TD (TSX:TD) Cowen reaffirmed its Buy rating on Western Digital following the company's announcement of its upcoming spin-off of its Flash business, a strategic move anticipated to enhance shareholder value and provide clearer visibility into the company's operations. Meanwhile, Citi has raised its outlook on SK Hynix shares, predicting a promising scenario for 4Q DRAM pricing. These developments come as Western Digital continues to progress with the separation of its Flash and HDD businesses, expected to be completed by the end of the fiscal second quarter. The company anticipates revenue between $4.2 billion and $4.4 billion for the next quarter, with projected earnings per share between $1.75 and $2.05. However, the company experienced operational dissynergies of approximately $30 million due to carrying dual cost structures.
InvestingPro Insights
While Gene M. Zamiska's recent stock sale might raise eyebrows, it's crucial to view this transaction within the broader context of Western Digital's performance and market position. According to InvestingPro data, Western Digital boasts a substantial market capitalization of $25.27 billion, underscoring its significant presence in the Technology Hardware, Storage & Peripherals industry.
The company's stock has shown remarkable strength recently, with a 14.38% return over the past week and an impressive 54.67% return over the last year. This positive momentum aligns with an InvestingPro Tip indicating that Western Digital is expected to see net income growth this year, potentially explaining the robust investor confidence.
However, it's worth noting that the company is trading at a high earnings multiple, with a P/E ratio of 73.46. This valuation metric suggests that investors are pricing in substantial future growth expectations. Interestingly, another InvestingPro Tip points out that Western Digital is trading at a low P/E ratio relative to near-term earnings growth, which could indicate a potential value opportunity for long-term investors.
For those seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide further insights into Western Digital's financial health and market prospects. These additional tips could be particularly valuable in light of the recent insider transaction and the company's dynamic market performance.
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