Western Digital Corp. (WDC) Stock Down After Price Target Increase by Analysts at Jefferies Group

Western Digital Corp. (NASDAQ: WDC) shares were down yesterday on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.

Western Digital Corp. (NASDAQ: WDC) had its price target boosted by equities researchers at Jefferies Group from $59.26 to $70.00. With a rating of Buy on the stock, the company has a 52-week high of $86.39. The one-year price target of $63.01 is higher than the opening price of $59.26, that has caused a number of other analysts to comment on the stock in recent days.

Meanwhile, the Dow Jones Industrial Average DJIA, +0.49% rose 88.55 points, or 0.5% to close at 18,329.04, yesterday.
The S&P 500 index SPX, +0.46% closed up 9.92 points, or 0.5%, at 2,163.66

The Nasdaq Composite Index COMP, +0.69% gained 36.27 points, or 0.7%, to finish at 5,328.67.

In early trading today however, the Dow Jones Industrial Average DJIA, -0.63% dropped 103 points, or 0.6%, to 18,227.
The S&P 500 index SPX, -0.69% fell 12 points, or 0.6%, to 2,150, with all of its main sectors trading lower.

Meanwhile the Nasdaq Composite Index COMP, -0.79% fell 32 points, or 0.6%, to 5,295, dragged down by heavy losses in biotech stocks.

Shares of Western Digital Corp. (NASDAQ: WDC) opened at $59.26 yesterday and traded in a range between, $57.40 and $59.35, and last traded at $57.50, which represents a decrease of $1.76 per share or -0.03 over the previous closing price.

Western Digital Corp. (NASDAQ: WDC) currently has a market cap of 16.35B.

Western Digital Corp.Trading Volume

The stock’s average daily volume is 4,900,270 shares out of a total float 283,804,000 and some 1,012,872 shares traded hands yesterday, lower than the norm. Swing traders often use upticks in trading volume to determine substantial volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.

However, a single day of significant buy side trading is not enough to assert a trend. So market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain substantial teams of analysts that research thousands of stocks, so it is good confirmation to see them taking a postion in a stock you’re considering.

Western Digital Corp. Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

Traders are able to make make more impactful decisions on trades when they follow the trading habits of professional investors.

Trades for Western Digital Corp. (NASDAQ: WDC) have ranged from $34.99 – 86.39, and the stock now has a 50-day MA of $53.06 and 200-day MA of $47.25. Today’s last price is 0.33% below the 52 week high of $86.39.

Earnings growth is a crucial factor to research when investing in stocks and investors identify companies that have been successful at growing their earnings by at least 25% over a 3 year period.

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