Western Digital Stock Drops on Downgrade

Goldman Sachs favors Micron over Western Digital

Deputy Editor
Dec 15, 2022 at 10:37 AM
facebook twitter linkedin

Western Digital Corp (NASDAQ:WDC) stock is having a rough day, down 9.5% at $32.42 at last glance, after Goldman Sachs downgraded the stock to "sell" from "neutral," with a price-target cut to $31 from $43. The firm cited expectations of a "severe" memory industry downturn, and pointed toward the company's balance sheet. Sachs also reiterated its "buy" rating on sector peer Micron (MU), while Evercore ISI threw in a bear note as well, slashing WDC's price target to $42 from $50. 

On the charts, today's drop has WDC trading at its lowest levels since late September. Longer term, the stock's 100-day moving average has been pressuring the shares lower since June. Year-to-date, the equity is down 49.5%. 

The stock has landed on the short sell restricted (SSR) list today amid the negative price action. Options bulls appear to be betting on a bounce, however, as calls are being picked up at double the intraday average rate. The December 33 call is the most popular, with new positions being bought to open there. 

Analysts are leaning bearish on Western Digital stock. After today's notes, 12 analysts carry a "buy" or better rating, 14 a "hold," and three a "sell." 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners