Western Digital Corp (NASDAQ:WDC) recently reported that Gene M. Zamiska, the company's Senior Vice President and Principal Accounting Officer, sold shares of the company. According to the SEC filing, Zamiska sold 1,993 shares of Western Digital stock on October 28, 2024, at a price of $69.94 per share. The total value of the transaction amounted to $139,390. Following this sale, Zamiska holds 30,608 shares in the company.
In other recent news, Western Digital reported revenue growth in its fiscal first quarter of 2025, announcing a revenue of $4.1 billion. The company also noted an increase in earnings per share to $1.78 and a non-GAAP gross margin of 38.5%. Sequential growth was observed in both Flash and HDD segments, attributed to the AI Data Cycle demand.
In addition, Western Digital is proceeding with the separation of its Flash and HDD businesses, with completion expected by the end of the fiscal second quarter. For the upcoming quarter, the company anticipates revenue between $4.2 billion and $4.4 billion, with projected earnings per share between $1.75 and $2.05.
Despite experiencing operational dissynergies and an outflow of free cash flow, the company reported record gross margins and increased capacity, driven by the success of UltraSMR technology in HDD. Operating income also saw a 33% increase from the previous quarter to $884 million.
These are recent developments highlighting the company's strategic initiatives and commitment to aligning production with customer demand while maintaining strong margins. Western Digital's robust product roadmap positions it well to leverage growth driven by AI and other data-intensive applications.
InvestingPro Insights
As Western Digital Corp (NASDAQ:WDC) navigates the dynamic technology hardware sector, recent InvestingPro data provides additional context to Gene M. Zamiska's stock sale. The company's market capitalization stands at $23.85 billion, reflecting its significant presence in the industry. Western Digital's revenue growth is particularly noteworthy, with a 26.61% increase over the last twelve months as of Q1 2025, and an impressive 48.91% quarterly growth in Q1 2025.
These growth figures align with an InvestingPro Tip indicating that Western Digital is trading at a low P/E ratio relative to its near-term earnings growth. This suggests that despite Zamiska's recent sale, the company may still present value to investors. The PEG ratio of 0.64 further supports this view, potentially indicating an undervalued stock relative to its growth prospects.
Another relevant InvestingPro Tip highlights that analysts expect Western Digital to be profitable this year, which could explain the company's strong year-to-date price return of 33.11%. This positive outlook may provide some reassurance to investors in light of the insider sale.
For those seeking a deeper understanding of Western Digital's financial health and market position, InvestingPro offers 6 additional tips, providing a more comprehensive analysis for informed investment decisions.
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