David Goeckeler, the Chief Executive Officer of Western Digital Corp (NASDAQ:WDC), recently sold 75,000 shares of the company's common stock. The transaction was executed on October 25th at an average price of $72.585 per share, amounting to a total sale value of approximately $5.44 million. Following this sale, Goeckeler retains ownership of 821,630 shares in the company. The sale was conducted under a pre-established Rule 10b5-1 trading plan, which Goeckeler adopted on June 6, 2024.
In other recent news, Western Digital has reported a revenue growth to $4.1 billion in its fiscal first quarter of 2025. The company's earnings per share (EPS) increased to $1.78, and it experienced a non-GAAP gross margin of 38.5%. Sequential growth was noted in both Flash and HDD segments, a trend attributed to the AI Data Cycle demand. Western Digital is also in the process of separating its Flash and HDD businesses, with completion expected by the end of the fiscal second quarter.
The company anticipates a revenue between $4.2 billion and $4.4 billion for the next quarter, with projected EPS between $1.75 and $2.05. Despite experiencing operational dissynergies of approximately $30 million due to dual cost structures and an outflow of $14 million in free cash flow, Western Digital reported record gross margins and increased capacity.
These are among the recent developments for Western Digital, which continues to focus on aligning production with customer demand, optimizing profitability, and executing strategic initiatives. The company's future outlook, as stated by CEO David Goeckeler, remains positive with expected growth in Flash revenue and continued demand for high-capacity HDD products.
InvestingPro Insights
To provide additional context to David Goeckeler's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Western Digital Corp (NASDAQ:WDC).
Western Digital's market capitalization stands at $23.85 billion, reflecting its significant presence in the Technology Hardware, Storage & Peripherals industry. The company has shown impressive growth, with revenue increasing by 26.61% over the last twelve months to $14.35 billion. This growth trend is even more pronounced in the most recent quarter, where revenue surged by 48.91%.
InvestingPro Tips highlight that Western Digital is expected to be profitable this year, with net income projected to grow. This positive outlook aligns with the company's current profitability, as it has been profitable over the last twelve months. These factors may have influenced CEO Goeckeler's decision to sell shares, possibly as part of a diversification strategy or to realize gains from the company's recent performance.
It's worth noting that Western Digital is trading at a high earnings multiple, with a P/E ratio of 70.54. However, an InvestingPro Tip suggests that the company is trading at a low P/E ratio relative to near-term earnings growth, indicating potential value for investors looking ahead.
The stock has demonstrated strong performance, with a one-year price total return of 78.88%. This substantial increase in share value could be another factor behind the CEO's decision to sell a portion of his holdings.
For investors seeking more comprehensive analysis, InvestingPro offers 8 additional tips for Western Digital Corp, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.