We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Western Digital Approves $2B Share Buyback to Boost Stockholder Value
Read MoreHide Full Article
Western Digital Corporation (WDC - Free Report) has taken a significant step forward in enhancing shareholder value with the announcement of a new $2 billion share repurchase program. This initiative reflects the company's robust strategic capital allocation framework aimed at maximizing long-term investor returns. Western Digital seeks to capitalize on market opportunities while bolstering shareholder confidence in its financial health by utilizing various avenues such as open market transactions, private deals or under a Rule 10b5-1 trading plan.
This move underscores Western Digital's steadfast commitment to a balanced capital allocation strategy. Emphasizing growth reinvestment, debt reduction and substantial shareholder returns through buybacks, the company aligns its financial priorities with sustainable growth objectives. The decision to initiate this repurchase program shortly after introducing quarterly dividends further reinforces management's proactive approach to delivering value amidst evolving market conditions.
The timing and volume of the repurchases will be determined based on prevailing market conditions and company considerations. Western Digital also noted that it reserves the right to modify, suspend, or discontinue the program at any time.
On April 29, 2025, the company’s board of directors approved the initiation of a quarterly cash dividend program, starting with the quarter ending June 27, 2025. As part of this program, a cash dividend of 10 cents per share on the company’s common stock was declared, payable on June 18, 2025, to shareholders of record as of June 4, 2025.
A share repurchase program allows a company to buy back its own shares, reducing the number of outstanding shares and boosting earnings per share (EPS). This often signals management’s confidence in the company’s future and can enhance shareholder value. Buybacks are also a tax-efficient alternative to dividends and provide flexibility in capital allocation. By timing repurchases strategically, companies can improve financial ratios like return on equity (ROE), support the stock price and reduce ownership dilution.
Recently, the company came up with third-quarter fiscal 2025 results. Western Digital generated $508 million in cash from operations in the third quarter compared with $58 million in the prior-year quarter. Free cash flow amounted to $436 million, up 379% year over year.
As of March 28, 2025, cash and cash equivalents were $3.477 billion compared with $2.291 billion as of Dec. 27, 2024.
Stocks to Consider From the Computer and Technology Space
Some better-ranked stocks from the broader technology space are Science Applications International Corporation (SAIC - Free Report) , SAP (SAP - Free Report) and Teradata Corporation (TDC - Free Report) . SAIC, SAP and TDC carry a Zacks Rank #2 (Buy).
Science Applications’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 14.62%. In the last reported quarter, SAIC delivered an earnings surprise of 28.5%. Its shares have increased 1.6% in the past year.
SAP’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 10.14%. In the last reported quarter, SAP delivered an earnings surprise of 8.63%. The company’s long-term earnings growth rate is 10.2%. Its shares have surged 52.7% in the past year.
Teradata’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 24.63%. In the last reported quarter, TDC delivered an earnings surprise of 15.79%. Its shares have decreased 31.1% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Western Digital Approves $2B Share Buyback to Boost Stockholder Value
Western Digital Corporation (WDC - Free Report) has taken a significant step forward in enhancing shareholder value with the announcement of a new $2 billion share repurchase program. This initiative reflects the company's robust strategic capital allocation framework aimed at maximizing long-term investor returns. Western Digital seeks to capitalize on market opportunities while bolstering shareholder confidence in its financial health by utilizing various avenues such as open market transactions, private deals or under a Rule 10b5-1 trading plan.
This move underscores Western Digital's steadfast commitment to a balanced capital allocation strategy. Emphasizing growth reinvestment, debt reduction and substantial shareholder returns through buybacks, the company aligns its financial priorities with sustainable growth objectives. The decision to initiate this repurchase program shortly after introducing quarterly dividends further reinforces management's proactive approach to delivering value amidst evolving market conditions.
Western Digital Corporation Price and Consensus
Western Digital Corporation price-consensus-chart | Western Digital Corporation Quote
The timing and volume of the repurchases will be determined based on prevailing market conditions and company considerations. Western Digital also noted that it reserves the right to modify, suspend, or discontinue the program at any time.
On April 29, 2025, the company’s board of directors approved the initiation of a quarterly cash dividend program, starting with the quarter ending June 27, 2025. As part of this program, a cash dividend of 10 cents per share on the company’s common stock was declared, payable on June 18, 2025, to shareholders of record as of June 4, 2025.
A share repurchase program allows a company to buy back its own shares, reducing the number of outstanding shares and boosting earnings per share (EPS). This often signals management’s confidence in the company’s future and can enhance shareholder value. Buybacks are also a tax-efficient alternative to dividends and provide flexibility in capital allocation. By timing repurchases strategically, companies can improve financial ratios like return on equity (ROE), support the stock price and reduce ownership dilution.
Recently, the company came up with third-quarter fiscal 2025 results. Western Digital generated $508 million in cash from operations in the third quarter compared with $58 million in the prior-year quarter. Free cash flow amounted to $436 million, up 379% year over year.
As of March 28, 2025, cash and cash equivalents were $3.477 billion compared with $2.291 billion as of Dec. 27, 2024.
WDC’s Zacks Rank & Stock Price Performance
Western Digital currently carries a Zacks Rank #5 (Strong Sell). Shares of the company have lost 31% in the past year compared with the Zacks Computer- Storage Devices industry's decline of 31.5%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Image Source: Zacks Investment Research
Stocks to Consider From the Computer and Technology Space
Some better-ranked stocks from the broader technology space are Science Applications International Corporation (SAIC - Free Report) , SAP (SAP - Free Report) and Teradata Corporation (TDC - Free Report) . SAIC, SAP and TDC carry a Zacks Rank #2 (Buy).
Science Applications’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 14.62%. In the last reported quarter, SAIC delivered an earnings surprise of 28.5%. Its shares have increased 1.6% in the past year.
SAP’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 10.14%. In the last reported quarter, SAP delivered an earnings surprise of 8.63%. The company’s long-term earnings growth rate is 10.2%. Its shares have surged 52.7% in the past year.
Teradata’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 24.63%. In the last reported quarter, TDC delivered an earnings surprise of 15.79%. Its shares have decreased 31.1% in the past year.