WDC Shoots Back Toward 2-Year Highs After Earnings Beat

WDC is ready to topple long-time pressure near the $72 region

Deputy Editor
Apr 30, 2021 at 9:39 AM
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The shares of Western Digital Corp (NASDAQ:WDC) are up 4% at $73.96 this morning, after the company shared fiscal third-quarter profits of $1.02 per share on revenue of $4.14 billion, with both its top and bottom lines handily topping analysts' expectations. Many brokerage firms are responding in turn. Already, Western Digital stock has received no less than 11 price-target hikes, including a lofty one from Susquehanna to $125. 

Most members of the brokerage bunch were already optimistic on WDC coming into today. Of the 21 in coverage, 16 considered the stock a "buy" or better, with not a single "sell" rating to be seen. Plus, the 12-month consensus price target sat at $83.44 -- a 17.3% premium to last night's close. 

Similar bullishness can be ascribed to the options pits, where a whopping 8.51 calls have been picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stand higher than 91% of readings from the past 12 months, meaning this penchant for long calls is unusual. 

It's been a choppy couple months for WDC on the charts, with several brutal rejections occurring at the $72 region since early March. The ascending 60-day deftly captured two of these dramatic pullbacks, however, and for the year, WDC still boasts an impressive 28.4% lead. Plus, today's pop puts WDC back within a hair of its April 7, two-year high of $74.66. 

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