Morgan Stanley Cuts Western Digital (WDC) Price Target to $643

Morgan Stanley maintained its Overweight rating on Western Digital Corporation WDC on October 20, 2026, while lowering its price target from $676.00 to $643.00. The research note arrived just days before the company's next scheduled earnings report, keeping a positive stance on the data storage provider even as the firm trimmed its twelve-month target. Analysts across Wall Street continue to monitor the hardware maker closely as memory and storage markets shift.

WDC Western Digital Corporation

$364.32 ▲ +94.30% year to date

1M 3M YTD

Daily close · Oct 20, 2026

Morgan Stanley's Call on Western Digital

In its October 20, 2026 update, Morgan Stanley reaffirmed an Overweight rating on the storage specialist while tweaking the price objective downward from $676.00 to $643.00. The rating represents the firm's forward-looking view on the stock's potential relative to the broader market. The adjustment follows earlier research notes from other major financial institutions heading into the autumn earnings window.

Western Digital Corporation Stock Up 9.8%

Western Digital shares closed at $364.32 on October 20, 2026, and recently traded around $364.49. The stock trades below its 50-day moving average of $440.54 and sits under its 200-day moving average of $411.42. The share price remains well below its 52-week high of $799.87, though it stays well above its 52-week low of $117.23.

Recent Earnings

For the trailing twelve months, Western Digital generated $12.92 billion in revenue and reported earnings of $26.92 per share. The company posted a net profit margin of 72.9% alongside a return on equity of 130.9%. Revenue grew 43.8% compared to the same period a year earlier. The next earnings release is scheduled for October 22, 2026.

Dividend

Western Digital pays an annual dividend rate of $0.60 per share, which gives it a dividend yield of 0.17%. The payout is supported by a dividend payout ratio of 1.9%, indicating that the company retains the vast majority of its earnings to fund operations and growth.

Insider Buying and Selling at Western Digital Corporation

Company insiders executed several stock sales during late summer. On August 27, 2026, officer Cynthia Lock Tregillis disposed of 1,483 shares valued at $696,280. Director Stephanie A. Streeter sold 5,600 shares on September 1, 2026, for a total value of $2,519,280. Later, on September 4, 2026, Cynthia Lock Tregillis sold another 432 shares at $451.20 each for $194,918, while officer Vidyadhara K Gubbi sold 1,795 shares at $459.87 each totaling $825,472.

Analysts Set New Price Targets

Wall Street firms have updated their outlooks on Western Digital through the late summer and fall. TD Cowen maintained a Buy rating on August 6, 2026, raising its price target from $500.00 to $540.00. Citigroup maintained a Buy rating on August 7, 2026, while lowering its target from $800.00 to $740.00. UBS maintained a Neutral rating on October 12, 2026, adjusting its target from $525.00 to $470.00. Wells Fargo maintained an Overweight rating on October 16, 2026, cutting its target from $730.00 to $450.00. Consensus analyst data shows a strong buy recommendation overall, backed by 24 analysts with a mean price target of $652.04.

About Western Digital Corporation

Headquartered in San Jose, California, Western Digital designs and manufactures data storage devices and hardware solutions. The company builds internal hard disk drives, enterprise data center platforms, portable external drives, and network-attached storage gear for homes and offices. Its storage technology powers everything from personal computers to large server farms.

Bottom Line

Investors will look to the upcoming earnings release on October 22, 2026, for fresh details on storage demand and profit margins. Watch for management commentary on data center spending and inventory levels during the call.