Western Digital Corp. (NASDAQ:WDC) stock traded lower Monday in premarket trading as investors weighed a mixed market backdrop and recent weakness in the stock. Nasdaq futures rose 0.11%, while S&P 500 futures gained 0.05%.

The move comes after a volatile stretch that included a June swing high and a July swing low.

The stock remains under pressure after pulling back sharply from its June peak. That weakness has pushed Western Digital below key short- and medium-term moving averages.

Investors are now watching whether selling pressure begins to ease or triggers another leg lower.

Earnings Beat Estimates

Western Digital last week reported fiscal fourth-quarter adjusted earnings of $3.56 per share, beating the Wall Street estimate of $3.29.

Quarterly revenue rose to $3.75 billion from $2.61 billion a year earlier. That also topped the $3.69 billion consensus estimate.

For the fiscal first quarter, Western Digital expects adjusted earnings of $3.85 to $4.15 per share, compared with the $3.81 analyst estimate. The company guided revenue to $4 billion to $4.2 billion versus the $4.01 billion consensus.

At the midpoint, Western Digital expects revenue of $4.1 billion, adjusted gross margin of 55.5% and adjusted earnings of $4 per share.

Western Digital Technical Analysis

The stock has remained under pressure following its post-earnings decline. Western Digital is also digesting a broader pullback from its June peak.

The shares have gained 481.86% over the past 12 months. However, the intermediate trend has weakened.

The stock is trading 15.8% below its 20-day simple moving average and 23.3% below its 50-day SMA. However, shares remain 26.2% above the 200-day SMA, keeping the longer-term trend positive.

The MACD is below its signal line, while the histogram is negative. Both indicators point to weaker near-term momentum.

The moving averages tell a similar story. The 20-day SMA is below the 50-day SMA, signaling short-term weakness. However, the 50-day SMA remains above the 200-day SMA, supporting the longer-term bullish trend.

Western Digital’s key support sits near $430.50. A break below that level could increase selling pressure.

Analyst Outlook

The stock trades at a price-to-earnings ratio of about 17.9. Western Digital carries a Buy consensus rating with an average price forecast of $649.79, based on 31 analysts. Recent analyst actions include:

• Citigroup: Maintained Buy and lowered its price forecast to $740 on Aug. 7.
• TD Cowen: Maintained Buy and raised its price forecast to $540 on Aug. 6.
• UBS: Maintained Neutral and lowered its price forecast to $525 on Aug. 6.

Benzinga Edge Rankings

Benzinga Edge rankings show Western Digital scores strongly on momentum and quality but remains weaker on value and growth.

The stock has a Momentum score of 99 and a Quality score of 94.81. Its Value score stands at 7.64, while its Growth score is 16.37.

The rankings point to a momentum- and quality-driven setup. However, near-term technical weakness puts greater focus on support around $430.50.

ETFs With WDC Exposure

Several ETFs have significant exposure to Western Digital:

• Alger 35 ETF (NYSE:ATFV): 6.73%
• Fidelity Cloud Computing ETF (NASDAQ:FCLD): 5.28%
• NestYield Visionary ETF (NASDAQ:EGGQ): 7.33%

Western Digital’s weighting means flows into or out of these funds can contribute to trading activity in the stock.

Western Digital Price Action

WDC Stock Price Activity: Western Digital shares were down 0.55% at $431.90 during premarket trading on Monday, according to Benzinga Pro data.

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