Western Digital Corp. (WDC) Shares Slip, Investors Watching Closely, Here is Why

Western Digital Corp. (NASDAQ: WDC) shares rose on Monday Nov 21 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, stocks were set to open higher this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.

Analysts at Vetr Inc. downgraded shares of Western Digital Corp. (NASDAQ: WDC) from Strong-Buy to Buy in a research note to investors today. With a rating of Buy on the stock, Western Digital Corp. has a 52-week high of $64.73. As a means of comparison, a number of other analysts have commented on the company recently, and the company has earned a consensus one-year price target of $70.01, higher than the opening price of $61.10. Considerable and fundamental changes in the company’s procedures, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the initial recommendation.

Western Digital Corp. (NASDAQ: WDC) shares last traded at $61.28, which represents a jump of $0.35 or 0.57% compared to the previous closing price. Opening at $61.10, they fluctuated from $61.10 and $62.34 throughout the day.

Western Digital Corp. (NASDAQ: WDC) now has a market cap of 17.49B.

Western Digital Corp. (NASDAQ: WDC) Average Daily Trading Volume

814,447 shares crossed the trading desk yesterday, lower than the average, out of a total float 284,962,000. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to pinpoint substantial volume accumulation or circulation by institutional investors.

As with all possible breakouts, investors watch for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.

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

These professional investors have teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Western Digital Corp. (NASDAQ: WDC) 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 effective decisions on trades when they track the activity of professional investors.

Trades for Western Digital Corp. (NASDAQ: WDC) have ranged from $34.99 – 64.73, and the stock now has a 50-day MA of $56.89 and 200-day MA of $49.67. Today’s last price is 5.33%% below the 52 week high of $64.73.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings at least 25% or more over 3 consecutive years.

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